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IN THE HIGH COURT OF ORISSA
B.N. Kirpal, J.
NAGAPPA MAHADEV DODDAAMANI - APPELLANT
Versus
NEW INDIA ASSURANCE CO. LTD. AND ANOTHER - RESPONDENT
Civil Appeal No. 5933 of 1997 (Arising out of SLP (C) No. 25092 of 1996)
Decided On : 29-08-1997
Compensation - Quantum of Compensation - The court restored the original compensation amount of Rs. one lakh awarded by the Tribunal, holding that interference with the quantum of compensation is only justified if it is inadequate or excessive, and the High Court failed to provide supporting reasons for reducing the amount to Rs. 80,000.
Fact of the Case:
The Tribunal awarded Rs. one lakh as compensation for an injury resulting in the shortening of one leg by approximately two inches. The High Court reduced the amount to Rs. 80,000.
Finding of the Court:
The court found that the High Court's judgment reducing the compensation amount lacked cogent reasons and failed to satisfy the legal requirement for interference with the quantum of compensation.
Issues: Adequacy of compensation amount and the High Court's authority to interfere with the quantum of compensation.
Ratio Decidendi: Interference with the quantum of compensation is justified only if it is inadequate or excessive, and such interference must be supported by cogent reasons.
Final Decision: The court allowed the appeal, setting aside the High Court's judgment and restoring the Tribunal's award of Rs. one lakh as compensation with interest at 6 per cent, along with costs throughout.
ORDER
1. Leave granted.
2. The Tribunal awarded a sum of Rs. one lakh for an injury which resulted in shortening of one leg of the victim by approximately two inches. The question of adequacy of the amount of Rs. one lakh as compensation does not arise for consideration since the claimant did not demand a higher amount. However, the insurer challenged the quantum and the High Court had reduced that amount from Rs. one lakh to Rs. 80,000/- only. Hence, this appeal by special leave.
3. We are unable to uphold the High Court's judgment reducing the amount of compensation from Rs. one lakh to Rs. 80,000/- for no cogent reasons. It is settled that in appeal interference is made with the quantum of compensation only on the ground of inadequacy or the same being too excessive, as the case may be. Obviously, in this case the amount of Rs. one lakh could not be called too excessive nor was that the view taken by the High Court which merely reduced the amount to Rs. 80,000/- without giving any supporting reasons to satisfy the legal requirement. The High Court's judgment is, therefore, set aside.
4. The appeal is allowed. The Tribunal's award of Rs. one lakh as compensation together with interest @ 6 per cent is restored with costs throughout.
Final Result : Allowed
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