Motorcyclist’s Dependants’ Rs38.05 Lakh Award Cut To Rs28 Lakh As Orissa HC Finds Tribunal Omitted Personal-Expense Deduction From Future-Prospects Calculation

On 26 March 2015, Shashikantha Mohapatra died after a trailer allegedly hit the motorcycle he was riding.

Police registered an FIR and filed a charge sheet against the trailer’s driver under Section 304-A of the IPC.

His dependants brought a claim before the Motor Accident Claims Tribunal, which awarded them ₹38,05,100 with interest at 6% per annum, subject to an exclusion for a period when the claim had been dismissed for default.

The insurer appealed, challenging both the finding of negligence—relying on the absence of a charge under Section 279 IPC—and the amount of compensation.

Section 304-A IPC addresses causing death by a rash or negligent act; the Court held that the absence of a separate charge under Section 279 IPC does not, by itself, absolve the insurer where the evidence supports a finding of rash and negligent driving.

Relying on Ranjeet v. Abdul Kayam Neb & Another, 2025 SCC OnLine SC 497, the Court stated that submission of a charge sheet against the driver for rash and negligent driving may establish negligence without further evidence, and that the absence of oral evidence is not necessarily fatal to a claim.

The Court also relied on Taslim Parvin & Another v. (Smt.) Usha Devi & Another, 2018(2) TAC 22 (SC), in considering the consensual modification of the compensation amount.

The Court upheld the negligence finding because the record included oral and documentary evidence and a charge sheet under Section 304-A IPC; it concluded that the lack of a Section 279 charge did not defeat the claim.

On quantum, the Court accepted the deceased’s income as assessed by the Tribunal, which had relied on his appointment letter and rounded his monthly income to ₹20,000.

However, it found that the Tribunal had erred by calculating future prospects on gross income without deducting personal and living expenses.

After proposing compensation of ₹28,00,000, the Court noted that the claimants accepted the proposal and the insurer left the matter to the Court’s discretion, and modified the award accordingly.

The Court maintained the finding of negligence but reduced the compensation to ₹28,00,000, with simple interest at 6% per annum from 8 April 2015 until realization.

It directed the insurer to pay within eight weeks and ordered proportionate disbursement to the claimants in accordance with the Tribunal’s award; the statutory deposit and accrued interest were to be refunded upon proof of deposit of the modified compensation.