Supreme Court: Mental and physical loss cannot be computed in terms of Money 

Sakunjay Vyas

Published on: March 30, 2022 at 08:29 IST

The Two Judge Bench of Justice Hemant Gupta and Justice V. Ramasubramanian of the Supreme Court overturned the order of the High Court bench that awarded compensation of Rs.13,46,805/-, as against Rs. 18,24,000/- awarded by the learned Motor Accident Claims Tribunal.

Supreme Court recently ruled that the mental and physical loss cannot be computed in terms of money, but there is no other way to compensate the victim except by payment of just compensation.

The Two Judge Bench of Justice Hemant Gupta and Justice V. Ramasubramanian were hearing the present appeal preferred by a five-year-old victim of a road accident, challenging the order of the High Court dated 7.9.2020 awarding compensation of Rs.13,46,805/-, as against Rs. 18,24,000/- awarded by the learned Motor Accident Claims Tribunal.

The Apex Court was of the opinion that in cases of personal injuries, determination of damages is not easy. The mental and physical loss cannot be equated with money, but other than providing compensation/damages, there is no other way to compensate.

The Apex Court corrected many of the errors made by the subordinate courts while deciding the present matter in hand. The High Court erred in determining the medical expenses, and the tribunal made an error in considering the rent of the taxi and regarding the proof of occupation of the father of the victim.

“The determination of damages in personal injury cases is not easy. The mental and physical loss cannot be computed in terms of money but there is no other way to compensate the victim except by payment of just compensation.” the Court said.

The Apex Court relying on relevant case laws and the facts provided, corrected the errors of the subordinate courts by determining the adequate medical expenses, including the equipment, taxi expenses, and further stated that since the father of the victim has already acknowledged being a government servant, the Court shall appreciate the same.

The Apex Court Further keeping in mind that the victim has not only lost his childhood but also his adult life hence should also be compensated for the minimum wages he could have earned if not been handicapped by the accident and loss of marriage prospects. Relying on the judgment of this Court in National Insurance Company Limited v. Pranay Sethi & Ors, offered 40% for future prospects.

 “The appellant has not only lost his childhood but also adult life.” the Court said.

As a result, the Apex Court overturned the order of the High Court by stating that the amount shall be invested in one or more Fixed Deposits Receipts so as to attract the maximum rate of interest. The interest amount shall be payable to the guardian of the appellant every month.

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