Orissa High Court Orders ₹2 Lakh Compensation To Man Who Sustained Severe Injuries In LPG Gas Cylinder Blast

The Orissa High Court has recently ordered an insurance company to pay ex-gratia compensation to the tune of ₹2 lakh to a man who sustained fatal injuries in an accidental LPG gas cylinder blast in the year 2021.

While fixing the responsibility of gas company and insurer, the Single Bench of Dr. Justice Sanjeeb Kumar Panigrahi held –

“…this Court is of the view that the Oil/LPG companies in the case like this where human cost of LPG cylinder explosion is incalculable behave like a hardcore litigant ignoring the fact that the matter does not fall in the realm of adversarial litigation. One can imagine as to how the thick flames engulf the surroundings and human beings just reduce to ashes or sometime escape death and end up with deformities.”

Factual Background

The petitioner was working as a daily labourer in the house of one Santosh Kumar Sahoo. On 27.09.2021, there was a fire accident due to leakage of gas from the LPG cylinder. Both the petitioner and the said Santosh Kumar Sahoo tried to extinguish the fire and in the process of which got seriously injured.

They were eventually shifted to the SCB Medical College and Hospital as their conditions worsened. On 07.10.2021, Santosh Kumar Sahoo succumbed to his injuries but the petitioner got treated in the hospital and was discharged on 22.10.2021.

Subsequently, the petitioner submitted an application to the gas agency claiming the insurance amount/ex gratia compensation of rupees two lakhs, which was to be forwarded by it to the insurance company for processing of payment.

Despite of being processed and recommended by the gas agency, the insurance company did not take any action and sat over the claim of the petitioner. Therefore, being aggrieved, the petitioner approached the High Court by filing this writ petition praying for a direction to the insurance company for payment of the insured amount.

Court's Observations

The Court lamented that despite of clear direction vide order dated 22.03.2024, the insurance company did not pay any heed. Considering unnecessary prolonged delay due to the inaction of the insurance company, the Court decided to proceed ex-parte in the judgment.

Justice Panigrahi was surprised that in cases of this nature, where lives of people have been lost/affected, the LPG company still behaved like a hardcore litigant ignoring the stance that such matter does not fall under the purview of adversarial litigation.

“Given the dire circumstances of this incident, it is evident that the petitioner not only did suffer severe physical injuries but also endured significant emotional trauma. Moreover, the petitioner has faced substantial medical expenses and the long-term consequences of the injuries sustained during the incident,” the Court observed.

Accordingly, taking into account the physical, emotional and financial toll on the petitioner, the Bench deemed it proper to direct the insurance company to pay ex-gratia compensation to the tune of rupees two lakhs for the injuries sustained by the petitioner within a period of two months.

Case Title: Sushant Behera v. The General Manager, ICICI Lombard General Insurance Co. Ltd. & Ors.

Case No: W.P.(C) No. 39989 of 2023

Date of Judgment: August 16, 2024

Counsel for the Petitioner: Mr. Bijaya Kumar Nayak (3), Advocate

Counsel for the Respondents: Mr. Shantanu Kumar Sarangi, Sr. Advocate & associates; Mr. Srinivas Patnaik, Advocate

Citation: 2024 LiveLaw (Ori) 73

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