Court : Orissa
Decided on : May-10-1989
Reported in : 1990ACJ631; AIR1990Ori74
L. Rath, J.1. The sole question for which this reference has been made to this Bench is whether in assessing compensation under Section 110-D of the Motor Vehicles Act and reaching the figure of the lump sum payable, the prevailing interest rate payable by the banks is available to be taken into consideration so as to limit the lump sum to the figure which if deposited in a bank would generate annual interest equal to the annual loss of dependency. In an earlier Division Bench decision reported in (1979) 47 Cut LT 368 (O.R.T. Company Ltd. v. Sibananda Patnaik) a view had been taken that a lump sum compensation cannot be determined on the basis of the interest rate of banks since the interest rate varies and there is no provision under the Motor Vehicles Act to review the compensation once awarded on the basis of variance of rate of interest and further, the persons entitled to compensation should have control over the compensation amount since there is no justification to keep it out o...
Tag this Judgment!Court : Orissa
Decided on : Nov-01-1989
Reported in : II(1989)ACC574
H.L. Agrawal, C.J.1. This is an appeal under Section 110-D of the Motor Vehicles Act by the employer against the judgment and order of the Second Motor Accidents claims Tribunal, Sambalpur, awarding Rs. 55,650/- as compensation to the claimant-respondent for the permanent disability suffered by him in an accident, and the question that arises is as to whether the Tribunal could award a higher compensation than that awardable under the Workmen's Compensation Act.2. The facts: The respondent was a bus driver of the appellant- Corporation. According to the case of the respondent, on 6-11-1979 he was to take a bus of the appellant Corporation from Deogarh to Bamra. When he was asked to take the bus in question, he noticed some defects in the headlight, break system, etc. But be was directed to take that very bus. Unfortunately, the bus met with an accident near a bridge, where there was a stiff curve of 90 degrees as it went beyond the control due to the defective brake. As a result of the...
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