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2024 DAILYLAW 2448 (PAT)

The Oriental Insurance Company Limited v. Shakntala Devi

/77/2024 · 2026-08-13

Rajiv Roy

body2024

Judgment text

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IN THE HIGH COURT OF JUDICATURE AT PATNA Miscellaneous Appeal No.77 of 2024 ====================================================== The Oriental Insurance Company Limited, Branch at Major Chandra Bhushan Dwivedi Kargil Chowk, Rajopatti, Sitamarhi, through the constituted attorney the Deputy Manager, Legal Hub Incharge at Regional Office, 5th Floor, Sone Bhawan, Birchand Patel Marg, R. Block, Patna. ... ... Appellant/s Versus 1. Shakntala Devi W/o Late Ram Swarath Ram Resident of Mohalla Mela Road, Bhawadepur, Shiv Colony, Ward No.- 21, P.S. and Dist.- Sitamarhi. 2. Abhinav Abhay S/o Late Ram Swarath Ram Resident of Mohalla Mela Road, Bhawadepur, Shiv Colony, Ward No.- 21, P.S. and Dist.- Sitamarhi. 3. Archana Bharti D/o Late Ram Swarath Ram Resident of Mohalla Mela Road, Bhawadepur, Shiv Colony, Ward No.- 21, P.S. and Dist.- Sitamarhi. 4. Aradhana Kumari D/o Late Ram Swarath Ram Resident of Mohalla Mela Road, Bhawadepur, Shiv Colony, Ward No.- 21, P.S. and Dist.- Sitamarhi. 5. Pushp Ranjan, S/o Shyamdeo Singh, Resident of Mohalla Mela Road, Bhawadepur, Shiv Colony, P.S. and Dist.- Sitamarhi. (Owner of the vehicle) ... ... Respondent/s ====================================================== Appearance : For the Appellant/s : Mr. Sumit Kumar, Adv. For the Respondent/s : Mr. Rakesh Kumar Sharma, Adv. Mr. Alok Anand, Adv. Mr. S.M. Sudhanshu, Adv. For Insurance Company : Mr. Sumit Kumar Singh, Adv. ====================================================== CORAM: HONOURABLE MR. JUSTICE RAJIV ROY ORAL ORDER 7 13-08-2026 Heard Mr. Sumit Kumar, learned counsel for the petitioner and Mr. Rakesh Kumar Sharma for the claimants. 2. The present application has been preferred for the following relief(s): against the order/judgment dated 06.08.2022 and award dated 25.05.2023 passed in Claim Case No. 36 of 2014 by Learned Additional District & Session Judge-VII -cum- Motor Vehicle Accident Patna High Court MA No.77 of 2024(7) dt.13-08-2026 2/8 Claim Tribunal, Sitamarhi by which the learned Tribunal has awarded compensation of Rs.40,97,748/- including ad-interim compensation with the interest thereon @ 07% annually in favor of Claimants from the date of filing of the Claim Application i.e., 02.05.2014 till realization. 3. The deceased, Ram Swarath Ram was serving as the Branch Manager of the Punjab National Bank and on 02.07.2013, when the vehicle along with huge cash amount was moving from Sitamarhi Bank Branch to Dumarkala under Majorganj Police Station on the vehicle no. BR-06-PA-4415, it was intercepted by miscreants and after opening fire, the amount was looted. The claimant succumbed to the injuries and this led to Majorganj P.S. Case No. 144/13 dated 02.07.2013. 4. The wife and the children later moved before Motor Vehicle Claim Tribunal, Sitamarhi in Claim Case No. 36/14 (Shakuntala Devi & Ors. vs. Pushp Ranjan & Anr.). It came to be dismissed on 04.06.2014 holding that no case under Section 166 of the Motor Vehicle Act, 1988 (henceforth for short ‘the Act’) can be entertained. 5. Aggrieved, the claimants moved before Patna High Court in M.A. No. 571 of 2014 (Shakuntala Devi & Ors. vs. Pushp Ranjan & Anr.). It was allowed on 11.03.2019 by a Co-ordinate Bench (Hon’ble Birendra Kumar, J, as his lordship then was) and Patna High Court MA No.77 of 2024(7) dt.13-08-2026 3/8 the Court observed that if not Section 166, Section 163A of ‘the said Act’ can be made applicable in the present case. 6. Accordingly, the Claim Case No. 36/2014 again came on the track and after hearing the parties vide an order dated 06.08.2022 calculating the net income and then multiplying it, Rs. 40,97,748 was directed to be paid along with the interest. 7. Aggrieved, the present appeal by the Insurance Company. 8. Learned counsel for the appellant has taken this Court to the Section 163A of ‘the Act’ which read as under: 163A. Special provisions as to payment of compensation on structured formula basis.-(1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle of the authorised insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner Patna High Court MA No.77 of 2024(7) dt.13-08-2026 4/8 of the vehicle or vehicles concerned or of any other person. (3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule. 9. Learned counsel then took this Court to the second schedule which is incorporated hereinbelow: Patna High Court MA No.77 of 2024(7) dt.13-08-2026 5/8 10. He thereafter took this Court to 2019 amended Second Schedule which again read as under: The Second Schedule Schedule For Compensation For Third Party Fatal Accidents/Injury Cases Claims "1. (a) Fatal Accidents: Compensation payable in case of Death shall be five lakh rupees. (b) Accidents resulting to permanent disability: Compensation payable shall be = Rs. 5,00,000 x percentage disability as per Schedule I of the Employee's Compensation Act, 1923 (8 of 1923)]: Provided that the minimum compensation in case of permanent disability of any kind shall not be less than fifty thousand rupees. Patna High Court MA No.77 of 2024(7) dt.13-08-2026 6/8 (c) Accidents resulting in minor injury: A fixed compensation of twenty five thousand rupees shall be payable. 2. On and from the date of 1st day of January, 2019 the amount of compensation specified in the clauses (a) to (c) of paragraph (1) shall stand increased by 5 per cent annually." 11. He submits that second schedule that has been discussed in the said section and calculating the age of the deceased (57 years), those having salary up to Rs. 40,000/- can be granted the compensation to the tune of Rs. 5,00,000/- and not more. With the help of the amended second schedule, he submits that on effective 01.01.2019, five per cent increase annually can be done. 12. Armed with the said sections/amendments, he submits that the claimants are at best entitled to Rs. 5,00,000/- under Section 163A of ‘the Act’ with five per cent increase annually effective 01.01.2019. 13. Learned counsel for the appellant submits that the Court erred in calculating the amount treating this case to have been taken up under Section 166 of ‘the Act’. 14. Mr. Sharma representing the opposite party, after some argument, submits/accepts that ‘the Act’/second schedule/amended second schedule of Section 163A under which Patna High Court MA No.77 of 2024(7) dt.13-08-2026 7/8 the Patna High Court directed the Court to consider the present case, extend the financial benefit only up to the extent as has been averred by the appellant. 15. Having heard the parties and after going through the Patna High Court judgment which gave direction to treat the case under Section 163 of ‘the Act’ coupled with the schedule/amended schedule, this Court is of the view that the claimants are entitled to Rs. 5,00,000/- with five percent annual increase effective 01.01.2019 till the actual payment is made and not more. 16. Thus, the order dated 06.08.2022 and the Award dated 25.05.2025 in the Claim Case No. 36 of 2014 is modified to the above extent. 17. However, it is made clear that this must come with statutory interest as per ‘the Tribunal’s order and the entire new calculated amount be handed over to the claimants by 31st August 2026 failing which they shall be entitled to Rs. 10,000/- as fine amount to be realized from the erring officials who delays the payment. 18. The earlier cheque that has been submitted before the concerned Court shall be handed over to the company when the new cheque/draft is submitted. 19. The statutory amount, if any, has to be returned. 20. With the aforesaid observation, M.A. No. 77 of Patna High Court MA No.77 of 2024(7) dt.13-08-2026 8/8 2024 is disposed of. Pending I.A.(s), if any, also stands disposed of. Vijay Singh/- (Rajiv Roy, J) U