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2020 Supreme(SC) 110

SUPREME COURT OF INDIA
L. NAGESWARA RAO, DEEPAK GUPTA, JJ.
KAJAL – APPELLANT
VERSUS
JAGDISH CHAND & ORS. – RESPONDENTS
CIVIL APPEAL NO. 735 OF 2020 (Arising out of Special Leave Petition (C) No.15504 OF 2019)
Decided on : 05-02-2020

Advocates Appeared:
For the Appellant :Dhruv Gautam, Charu Ambwani, Advocates
For the Respondent:S.L. Gupta, Kuldeep Singh Tomar, Varinder Kumar Sharma, Gunjan Sharma, Bikas Chandra, Advocates

IMPORTANT POINT
The compensation should neither be a bonanza nor a windfall, and simultaneously, should not be a pittance.

Headnote:

(a) Motor Vehicles Act, 1988 - Section 168 - "Just compensation" - Means the compensation should neither be a bonanza nor a windfall, and simultaneously, should not be a pittance. (Para 17)

(b) Motor Vehicles Act, 1988 - Section 166 - A young girl of 12 years suffering 100% disability and severe incontinence in a motor accident - Bound to be bed ridden for life with brain of a 9 month old child requiring 24 hours attendant - MACT awarding compensation of Rs. 11,08,501/- which was enhanced by the High Court to Rs. 25,78,501/- Court finding it grossly inadequate - applying multiplier of 18 - Considering various factors of the case like need of two attendants for whole life, loss of earnings, pain and suffering, loss of marriage prospects and future medical expenses, compensation enhanced from Rs. 25,78,501/- to Rs. 62,27,000/- with 7.5% interest. (Para 32)

Facts of the case:

A young girl while travelling on tractor with her father was hit by a truck resulting in 100% disability. The MACT awarded a compensation of Rs. 11,08,501/- which was enhanced by the High Court to Rs. 25,78,501/-.

Finding of the Court:

Compensation awarded is a pittance.

Result: Appeal disposed of.

JUDGMENT

Deepak Gupta, J.

Kajal was a bright young girl. She used to attend school, play with her friends and lead a normal life like any other child. Unfortunately, on 18th October, 2007, while Kajal was travelling on a tractor with her parents, the tractor was hit by a truck which was driven rashly. In the said accident, Kajal suffered serious injuries resulting in damage to her brain. This has had very serious consequences on her. She was examined at the Post Graduate Institute of Medical Education and Research, Chandigarh (PGI, Chandigarh for short), for assessment of her disability. According to the said report, because of head injury Kajal is left with a very low I.Q. and severe weakness in all her four limbs, suffers from severe hysteria and severe urinary incontinence. Her disability has been assessed as 100%.

2. Dr. Chhabra (PW-4), who was one of the members of the Board which issued the disability certificate (Ex.P6) stated that as per the assessment her I.Q. is less than 20% of a child of her age and her social age is only of a 9 month old child. This means that Kajal while lying on the bed will grow up to be an adult with all the physical and biological attributes which a woman would get on attaining adulthood, including menstruation etc., but her mind will remain of a 9 month old child. Basically, she will not understand what is happening all around her.

3. How does one assess compensation in such a case? No amount of money can compensate this child for the injuries suffered by her. She can never be put back in the same position. However, compensation has to be determined in terms of the provisions of Motor Vehicles Act, 1988 (for short the Act). The Act requires determination of payment of just compensation and it is the duty of the court to ensure that she is paid compensation which is just.

4. Kajal through her father filed a claim petition, under the Act. The Motor Accident Claims Tribunal (MACT for short) awarded Rs. 11,08,501/- and held that since there was violation of the terms of policy the insurance company would pay the amount but would be entitled to recover the same from the owner. The High Court enhanced the award amount to Rs. 25,78,501/- under the following heads:

Heads

High Court

Age

12

Multiplier

-

Income (taken to be)

Rs. 15,000/-

Disability

100%

Loss of income and permanent disability compensation

Rs. 2,70,000/-

Pain, suffering loss of amenities

Rs. 3,00,000/-

Attendant charges

Rs. 3,20,000/-(Rs.2500 for 44 years)

Future medical expenses

Rs. 2,00,000/-

Loss of marriage prospects

Rs. 3,00,000/-

Medical Treatment

Rs. 1,38,501/-

Transportation details / special diet

Rs. 50,000/-

Total

Rs.25,78,501/-

Aggrieved by the award the claimant is before this Court.

5. The principles with regard to determination of just compensation contemplated under the Act are well settled. Injuries cause deprivation to the body which entitles the claimant to claim damages. The damages may vary according to the gravity of the injuries sustained by the claimant in an accident. On account of the injuries, the claimant may suffer consequential losses such as (i) loss of earning; (ii) expenses on treatment which may include medical expenses, transportation, special diet, attendant charges etc., (iii) loss or diminution to the pleasures of life by loss of a particular part of the body, and (iv) loss of future earning capacity. Damages can be pecuniary as well as non-pecuniary, but all have to be assessed in Rupees and Paise.

6. It is impossible to equate human suffering and personal deprivation with money. However, this is what the Act enjoins upon the courts to do. The court has to make a judicious attempt to award damages, so as to compensate the claimant for the loss suffered by the victim. On the one hand, the compensation should not be assessed very con


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