ORIENTAL INSURANCE CO LTD Vs. CHANDRA PANIGRAHI SMT

JUDGEMENT

(1.) THE Oriental Insurance Company Limited (hereinafter referred to as the 'insurer') calls in question legality of an award made by the Second Motor Accidents Claims Tribunal, Southern Division, Berhampur (in short, the 'tribunal' ). A sum of Rs. 45,000/- has been awarded as compensation by the Tribunal to the legal representatives (hereinafter referred to as the 'claimants')'of one Krupasindhu Panigrahi (hereinafter referred to as the 'deceased'), who lost his life in an accident on March 28, 1983. The insurer has been directed to pay the award along with interest at the rate of 6% from the date of award till realisation, if paid within a period of three months from the date of award. A default rate of interest at the rate of 12% was stipulated in case of non-payment within the stipulated period. Interest from the date of claim was denied, as the Tribunal felt that the proceeding was prolonged on account of careless attitude of the claimants. A cross-objection has been filed by the claimants seeking for modification of the award and for a direction to pay interest from the date of claim.

(2.) SINCE the factual position as asserted by the claimants is not disputed by the contesting parties in this appeal it is not necessary to set out the same in detail. Essentially it is as follows : On March 28, 1983 at about 10 a. m. deceased was employed as a cleaner of truck bearing No. O. R. G. 3736 belonging to Iswar Chandra Pradhan (hereinafter referred to as the 'owner'), and was travelling in the said vehicle, when it met with an accident at Taptapanighat on the Berhampur-Mohana road, due to rash and negligent driving by the driver. The vehicle first dashed against the parapet wall of a culvert, and thereafter capsized causing instantaneous death of the deceased. At the time of death deceased was aged about 45 years, and was earning Rs. 600/- per month. A claim of Rs. 75,000/- was made under Section 110-A of the Motor Vehicles Act, 1939 (in short, 'the Act' ). In the proceeding before the Tribunal both the owner, and Banabasi Gouda, driver of the vehicle were impleaded. Owner filed written statement denying its liability to pay compensation. Insurer also filed a separate written statement. On evaluation of evidence adduced Tribunal came to hold that the accident took place on account of rash and negligent driving of the vehicle, the deceased was engaged as a cleaner, he was aged 45 years and was getting Rs. 600/- per month. Treating the deceased as a workman under the Workmen's Compensation Act, 1923 (hereinafter referred to as the 'workmen's Act') entitlement of the claimants was determined at Rs. 39,909. 60 and it was rounded up to Rs. 40,000/ -. Additionally a sum of Rs. 5,000/- was added towards consortium, and total compensation was worked out at Rs. 45,000/ -.

(3.) IN support of the appeal, following points have been urged by learned counsel for the insurer.