The Supreme Court on Wednesday asked courts to take a liberal view in awarding compensation to motor vehicle accident victims with disability up to 100%, especially along with permanent mental disability.
A bench of Justices L. Nageswara Rao and Deepak Gupta awarded an enhanced amount of Rs. 62,27,000/-, which is more than what was claimed by the petitioners, as the motor accident victim was a minor. It was held that the High Court erroneously computed the interest on the enhanced amount based on the date of filing of the appeal, where in fact the date of filing of the petition was material.
The court observed: “Normally interest should be granted from the date of filing of the petition and if in appeal enhancement is made the interest should again be from the date of filing of the petition. It is only if the appeal is filed after an inordinate delay by the claimants, or the decision of the case has been delayed on account of negligence of the claimant, in such exceptional cases the interest may be awarded from a later date.”
Kajal, a twelve-year-old girl was rendered bed-ridden for life, with a fixed mental age of a 9-month-old after a truck hit the tractor she was riding on. The court noted, “We are dealing with a girl who will physically become a woman but will mentally remain a 9 month old child. This girl will miss out playing with her friends. She cannot communicate; she cannot enjoy the pleasures of life; she cannot even be amused by watching cartoons or films; she will miss out the fun of childhood, the excitement of youth; the pleasures of a marital life; she cannot have children who she can love let alone grandchildren. She will have no pleasure. Her’s is a vegetable existence.”
The court directed, “The MACT (Motor Accidents Claims Tribunal) shall keep the entire amount in a fixed deposit in a nationalised bank, for a period of 5 years, giving highest rate of interest. The interest payable on this amount shall be released on quarterly basis to the father of the child.”
The apex court has further directed that the existing guidelines on investment of compensation amount and the release of interest as funds by MACT “should be followed by all the tribunals and High Courts to ensure that the money of the victims is not frittered away.”
The bench, however, warned courts to make a judicious attempt at awarding damages which should feel sufficient and not a “bounty” to the claimant.
— India Legal Bureau