The main legal point established in the judgment is that the compensation awarded must be just and fair, and any reduction in the awarded amount should be supported by reasoning and evidence.

ORDER :

1. Leave granted.

2. The Appellant has laid a challenge to the Judgment and Order dated 03.11.2017 passed by the High Court of Orissa at Cuttack, whereby an appeal filed by the Insurance Company in the Motor Accident Claim Case has been allowed in part and the compensation amount of Rs. 78,83,000/­ granted by the Motor Accident Claims Tribunal (Hereafter ‘the Tribunal’) has been reduced to Rs. 50,00,000/­.

3. The Appellant was 12 years old and enrolled in 8th standard at Johnson Grammar School, Nacharam, Hyderabad, Andhra Pradesh, when he met with the unfortunate accident. The mishap occurred on 24.05.2011 while he was travelling from Jeypore to Visakhapatnam along with his family on OSRTC Bus bearing Registration No. OR­10­F­3850. When the bus was near Tharapuram, NH 26, Rambhadrapuram Village, Andhra Pradesh, a lorry bearing Registration No. CG­04­DF-4126, owned by Respondent No. 2 and carrying iron angles dashed into the bus because of the rash and negligent manner it was driven. The tragic event resulted in 21 passengers being injured; later 2 of them succumbed to their injuries.

4. The Appellant also suffered multiple injuries including (i) Crush injury of right leg and knee, (ii) Degloving injury of right leg, (iii) Compound injury of right knee, (iv) Crush injury of left foot and (v) Communicated fracture of right knee and tibia.

5. The Appellant was firstly admitted to Care Hospital, Visakhapatnam but finding no improvement in respect to his health, he was shifted to C.C. Shroff Memorial Hospital, Hyderabad. Unfortunately, the right leg of the Appellant had to be amputated. The family incurred cost of Rs.7,00,000/­ in treatment of the Appellant. The Disability Certificate issued by the Competent Authority suggests that the Appellant has suffered 97% permanent disability in relation to the right lower limb, left lower limb and post­traumatic amputation. The Appellant has also produced a Certificate issued by Dhakhin Rehabilitation Centre showing that the prosthesis will have to be changed every 5 years and maintained regularly.

6. The Appellant sought compensation under the Motor Vehicles Act, 1989. The Tribunal at Koraput at Jeypore, Odisha, allowed his claim petition and awarded compensation of Rs.78,82,497/­ (rounded off to Rs.78,83,000/­). The Tribunal awarded a sum of Rs.16,82,497/­ under the head of medical expenses, transport and attendant fees for dressing. Another sum of Rs.26,00,000/­ was awarded for the purchase of prosthesis and maintenance. The new prosthesis’ rate which was supposed to to be changed every five years was taken as Rs.5,00,000/­. Cost of maintenance of prosthesis was assessed at the rate of Rs.30,000/­ per year. The Tribunal also awarded a sum of Rs.27,00,000/­ towards loss of future income.

7. While accepting the appeal preferred by the Insurance Company in part, thereby reducing the compensation amount of Rs.56,00,000/­, the only reason discernible from the Order passed by the High Court reads as follows:­

“As the claimant sustained disability to the extent of 97% due to amputation of his right leg and other complications, learned Tribunal has applied the multiplier of 15' to calculate the loss of income. Taking the notional income of the claimant at Rs.10,000/­ per month and adding 50% towards his future prospects, learned Tribunal has awarded Rs.27,00,000/­, towards loss of future income. Learned Tribunal has further awarded Rs.16,82,497/­ towards medical expenses, transport and attendant charges, Rs.3,00,000/­ towards pain and suffering, Rs.2,00,000/­ towards future medical expenses and Rs.2,00,000/­ towards loss of engagement and marriage prospects.

Law is well settled that pecuniary loss suffered by the claimant is to be assessed on the basis of actual expenses incurred. Therefore, the claimant having filed bills and vouchers to show that he had incurred medical expenses of Rs.10,15,949/­, learned Tribunal was not justified in awarding Rs.16,82,497/­ towards medical expenses, transpor