The main legal principle established in the judgment is the application of a liberal approach in determining compensation for the loss of life and limb, and the prohibition of retrospective enhancement of the rate of interest for default in payment of compensation.

D.C. Dalela, J.-This case has been listed for final disposal, in the cause-list, in pursuance of the order dated 26.2.1997, passed in the file of Stay Application No. 386 of 1995. Consequently, I have heard the arguments on the merits of the appeal.

2. Theowner of the vehicle, involved in the accident, has preferred this appeal, feeling aggrieved by the amount of compensation of Rs. 1,64,000, awarded by the learned Motor Accidents Claims Tribunal, Chhabra (Baran), in favour of the claimant-respondent Nos. 1 and 2. In this accident, a boy, student of class VIII has died and the learned Tribunal, on the basis of anticipated income, has estimated the value of dependency as Rs. 1,200 per month, after taking into account the future prospects and increase in earnings;. The learned Tribunal determined the multiplier as 10 and with reference to this multiplier, the learned Tribunal assessed the total loss of dependency as Rs. 1,44,000.

3. Theargument of the learned counsel for the appellant is that the deceased boy was a student of class VIII and was earning nothing and, therefore, the learned Tribunal fell into error in calculating the value of dependency on the hypothetical income of Rs. 1,200 per month. According to the learned counsel for the appellant, this amount is required to be reduced.

4. It is well-settled in law that in case of a boy, there can be no uniform law for measuring the value of human life and the measure of damages cannot be arrived at by precise arithmetical calculations. It is true that the claimant should not be permitted to make the fortune out of the misfortune that has befallen, but, at the same time, the determination of the quantum of compensation must be liberal and not niggardly since law values life and limb in a free country in generous scales. In the case of Concord of India Insurance Co. Ltd. vs. Nirmala Devi 1980 ACJ 55 (SC), Hon’ble Supreme Court has observed as under:

The determination of the quantum of compensation must be liberal and not niggardly, since law values life and limb in a free country in generous scales. Having regard to the above observations of Hon’ble Supreme Court, I think that in the instant case, the compensation of Rs, 1,44,000 awarded by the learned Tribunal, on account of the death of a boy, is reasonable and does not seem to be manifestly erroneous and demonstrably unsustainable.

5. In addition, the learned Tribunal has awarded Rs. 20,000 as compensation on account of the loss of affection and care to the parents (claimants) of the deceased. This amount seems to be on the higher side. I think that a sum of Rs. 10,000 under this head, would be adequate and reason able, at the rate of Rs. 5,000 to each of the parents. Therefore, amount of Rs. 20,000, as awarded by the learned Tribunal, is required to be reduced to Rs. 10,000 under this head.

6. Thus, the total amount of compensation awardable comes to Rs. 1,44,000 + Rs. 10,000 = Rs. 1,54,000.

7. Thelearned Tribunal has allowed interest at the rate of 12 per cent per annum, if the award amount is paid within two months, failing which, the rate of interest would be 15 per cent per annum. In other words, the learned Tribunal has allowed a higher rate of interest, in the case of default. Once the learned Tribunal has exercised its discretion to award interest on the amount of compensation to be awarded, at a particular rate, from a particular date, there is no scope for retrospective enhancement, for the default in the payment of compensation. Such a direction in the award, for retrospective enhancement of the rate of interest for default of payment of the amount of compensation, together with the interest payable thereon virtually amounts to imposition of penalty, which is not envisaged in the Motor Vehicles Act. A view similar to that of mine, has been expressed by the High Court of Orissa, in the case of Oriental Fire & Genl. Ins. Co. Ltd. vs. Buli Dei 1993 ACJ 1119 (Orissa). I, therefore, direct that the rate of in