1995 (1) TMI 422 - SC - Indian Laws

Compensation Increased for Severe Injuries: Fair Damage Assessment and Insurers' Liability Upheld, Interest Adjusted.

R.D. Hattangadi Versus Pest Control (India) Pvt. Ltd. and Ors.

The SC partially allowed the appellant's appeal, increasing the compensation awarded by the HC. It emphasized fair assessment of pecuniary and ... - Issues Involved:1. Determination of liability for the accident.2. Assessment of compensation for the appellant's injuries and disabilities.3. Evaluation of the claims against insurance companies.4. Calculation of interest on the awarded compensation.5. Consideration of non-pecuniary losses.Issue-wise Detailed Analysis:1. Determination of Liability for the Accident:The judgment addressed the liability arising from a collision between an Ambassador car and a motor lorry. The appellant claimed that the accident was caused by the rash and negligent driving of both vehicles. The Tribunal and the High Court found that both drivers were indeed driving in a rash and negligent manner, resulting in composite negligence. As a result, both the owners and insurers of the vehicles were held liable for the damages caused to the appellant. The evidence showed that the car had moved to the wrong side of the road, supporting the finding of negligence.2. Assessment of Compensation for the Appellant's Injuries and Disabilities:The appellant, a practicing advocate, became paraplegic due to the accident, resulting in 100% disability. The Tribunal initially awarded Rs. 26,25,992 as compensation, which the High Court reduced to Rs. 8,57,352. The Supreme Court emphasized that compensation must cover both pecuniary and non-pecuniary damages. Pecuniary damages include medical expenses and loss of earnings, while non-pecuniary damages account for pain, suffering, and loss of amenities. The Court acknowledged the difficulty in quantifying compensation for such severe injuries but stressed that the award should reflect the appellant's loss of a normal life.3. Evaluation of the Claims Against Insurance Companies:The car was insured by New India Assurance Company Limited, and the lorry by Oriental Fire and General Insurance Company Limited. The insurers argued that their liability was limited to the terms of their policies. The Tribunal held the insurers liable for compensation, with New India Assurance directed to pay the full amount on behalf of the car's owner. The Supreme Court upheld this finding, emphasizing the insurers' responsibility under the terms of their policies.4. Calculation of Interest on the Awarded Compensation:The High Court reduced the interest rate from 12% to 6% per annum. The Supreme Court modified this decision, clarifying that interest should not be payable on amounts allocated for future expenditures. Interest is applicable only on the compensation amount due at the time of the award, not on future expenses.5. Consideration of Non-Pecuniary Losses:The appellant claimed Rs. 3,00,000 each for pain and suffering and for loss of amenities of life, which the High Court reduced to Rs. 1,00,000. The Supreme Court recognized the appellant's significant deprivation due to the accident, considering his profession and the impact on his lifestyle. The Court increased the compensation for non-pecuniary losses to Rs. 1,50,000 for each head, totaling Rs. 3,00,000.Conclusion:The Supreme Court partially allowed the appellant's appeal, enhancing the compensation awarded by the High Court. It emphasized the need for a fair assessment of both pecuniary and non-pecuniary damages, reflecting the appellant's severe injuries and the impact on his life. The interest calculation was adjusted to exclude future expenditures, and the liability of the insurers was upheld according to their policy terms. The Special Leave Petition filed by M/s. Pest Control (India) Pvt. Ltd. was dismissed, affirming the enhanced compensation awarded to the appellant.