Authority: High Court of Odisha, Cuttack

Order Date: 14 August 2026

Case Overview

  • Parties: Appellants – Pratignya Khuntia & Ors.; Respondents – Kanhu Mohanty (owner) & Respondent No.2‑cum‑Insurance company (insurer).
  • Accident: On 25 September 2015, at ~7:00 PM, the deceased Ajay Kumar Khuntia was struck by an auto‑rickshaw (Regn. No. OR‑05‑AU‑2531) driven by Benudhara Patra, leading to severe injuries and subsequent death.
  • Police: Reported as Marshaghai PS Case No.257 of 2015; charge‑sheet filed against driver under IPC §§279/304(A) for causing death by negligence.
  • Claim: Claimants filed a petition under Section 166 of the Motor Vehicles Act (Misc. Case No.216 of 2016) seeking Rs 10,00,000, impleading the vehicle owner and insurer.
  • Tribunal Findings (31 Mar 2021): Awarded Rs 1,51,573 for injuries only; denied compensation for death, directing insurer to pay the amount with 7% interest from 5 Apr 2016.
  • Evidence: Claimants produced three eyewitnesses and nine documentary exhibits (Ext. 1‑9); insurer offered no evidence, merely contesting liability on the ground of alleged route‑permit violation.
  • Appellants argued that the deceased’s death resulted from injuries (PM report cited respiratory failure due to septicemia, deemed natural consequence of the accident).

Court’s Reasoning

  • The court held that the accident and the driver’s negligence were undisputed; the charge‑sheet under IPC 304(A) established liability for death, negating the need for further proof.
  • The tribunal’s conclusion that death was not caused by injuries was erroneous; the medical report unequivocally linked death to injuries sustained in the accident.
  • Regarding insurer liability, the court found the tribunal erred in relying on a Xerox copy of the vehicle’s route permit, which is inadmissible secondary evidence without proper foundation. No genuine evidence was presented to show policy breach.
  • Consequently, the insurer remains contractually bound to indemnify the insured and, by extension, the claimants.

Compensation Calculation

  • Notional daily income of the deceased: Rs 200 → monthly Rs 5,200 (excluding four holidays).
  • Annual income with 25% future prospects: (5,200 + 25% of 5,200) × 12 = Rs 78,000.
  • Net annual dependency (after deducting ¼ for personal expenses): ¾ × 78,000 = Rs 58,500.
  • Multiplier (age 52, multiplier 11): 58,500 × 11 = Rs 6,43,500.
  • Non‑pecuniary damages (funeral, love & affection) with three 10% enhancements every three years: Rs 70,000 + 10% × 3 = Rs 91,000.
  • Medical expenses incurred by the deceased: Rs 1,11,000.
  • Medicine & special diet for 14 days hospitalisation + 110 days post‑hospital care: Rs 35,000.
  • Total compensation: Rs 6,43,500 + Rs 91,000 + Rs 1,11,000 + Rs 35,000 = Rs 8,80,500.

Final Outcome

  • The appeal is allowed; the tribunal’s award is modified.
  • The insurer is directed to pay Rs 8,80,500 to the claimants‑appellants, with interest at 6% per annum from 5 April 2016 until realization.
  • Payment must be made within eight weeks of the order.
  • Upon deposit, 75% of the amount is to be placed in a fixed deposit with a nationalised bank for three years; the remaining 25% is to be disbursed equally among claimants Nos. 2‑4 (Appellant 1 deceased, name removed from memo).
  • No order as to costs.

Topics: Motor Accident Compensation, Insurance Liability, Judicial Review