Legal Analysis: Compensation Modification in Motor Accident Case

Delve into the intricate legal analysis conducted by the Court in a recent motor accident case regarding the modification of compensation. The Court’s thorough examination and rationale provide valuable insights into the complexities of such legal matters. Discover more about the nuances of the law in relation to compensation adjustments in motor accident cases in this engaging read.

Facts

  • The impugned order dated 28.12.2016 passed by the learned Member, 7th Motor Accident Claims Tribunal, Bhubaneswar in M.A.C. No 72 of 2015 is set aside.
  • The amount of compensation awarded by the learned Tribunal is modified to Rs. 20,00,000/- (Rupees twenty lakh).
  • The appellant-Insurance Company is directed to deposit the modified amount with 6% interest from the date of filing of the claim case till realization within eight weeks.
  • Learned Tribunal is directed to disburse the modified amount to the claimant-respondents proportionately as per the direction in the impugned order on proper identification.
  • The High Court judgment scaling down the compensation amount to Rs. 20,00,000/- lacked reasons as indicated in the judgment’s relevant portion.
  • Rs.25000/- deposited by way of account payee cheque along with the awarded amount deposited in the present appeal with accrued interest.
  • First Information Report filed for offences punishable under Sections 279, 337, 338 of the Indian Penal Code, 1860.
  • Appeal filed in the High Court which was partly allowed by the judgment under challenge.
  • Accident occurred on 12.12.2014 where Laxman Bhoi lost his life after being hit by a motorcycle.
  • Motor Accident Claims Tribunal assessed the compensation payable at Rs.24,07,741/- with 6% interest.
  • Insurance Company to return the amount to the appellant-Insurance Company.

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Arguments

  • Mr. Agarwal raised doubts about the cause of death and manner of the vehicular accident based on material on record
  • Dr. Kedar Nath Tripathi and Mr. Mohan Babu Agarwal supported the appeal on behalf of the parties involved

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Analysis

  • The High Court did not provide a plausible reason for scaling down the amount payable to the heirs.
  • The matter needs to be sent back to the High Court for a fresh assessment.
  • Only the amount payable to the heirs was reduced by the High Court.
  • The instant appeal cannot delve into the questions regarding the scaling down of the amount, as both lower courts assumed the death was due to an accident.
  • The accident occurred in 2015
  • Remanding the case at this stage would prolong the matter
  • The assessment made by the Tribunal did not warrant interference

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Decision

  • Appeal allowed
  • Judgment and order of High Court set aside
  • Order of the Tribunal restored
  • No order as to costs

Case Title: KAUSALYA BHOI Vs. DIVISIONAL MANAGER ORIENTAL INSURANCE CO. LTD. (2022 INSC 559)

Case Number: C.A. No.-003896-003896 / 2022

Click here to read/download original judgement

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