Wednesday, August 24, 2011

On 28th June 1995, the car in which Mrs. Kusuma, respondent No.1 in this appeal (hereinafter referred to as “the claimant”), aged about 36 years, was travelling from Sullia to Puttur collided with a Bus owned by Karnataka State Road Transport Corporation, respondent No.2 herein. Due to the impact of the accident, the claimant and others sustained injuries. The claimant, who was 30 weeks pregnant, suffered a fatal blow on the stomach. She was admitted in the hospital, where an X-ray and scanning of the foetus showed that the baby had died inside the uterus. On an induced delivery, the following day she delivered a still born baby. The claimant filed a claim petition under Section 166 of the Act before the Tribunal, Mangalore, making a claim of `2,00,000/- with cost and interest at 12%, towards the expenses incurred on medical treatment, mental shock, pain and loss of child. 4. The Tribunal vide award dated 5th October 2004, inter alia, held that loss of foetus on account of injury sustained by the claimant in the accident was akin to the death of a child of a tender age. Relying on a decision of the Karnataka High Court, wherein the Court had awarded a compensation of `25,000/- towards the loss of affection and `25,000/- towards the loss of estate on the death of a child of less than 2 1 year of age in an accident, the Tribunal allowed the claim in part and awarded a compensation of an amount of `50,000/- towards the loss of unborn child and a further sum of `10,000/- towards pain and sufferings to the claimant, along with an interest @ 6% per annum from 18th November 1995 i.e. the date of institution of the claim petition till the date of deposit/payment. The Insurance Company, the appellant in this appeal, was directed to pay the said compensation to the claimant, in order to indemnify the owner of the car. Claim petition against the owner of the Bus was rejected.


                                                                                    REPORTABLE


                        IN THE SUPREME COURT OF INDIA




                         CIVIL APPELLATE JURISDICTION




                  CIVIL APPEAL NO.      7212               OF 2011


                     (Arising out of S.L.P. (C) No.17905 of 2008)








NATIONAL INSURANCE COMPANY LTD.                                 --      APPELLANT




                                           VERSUS




KUSUMA & ANR.                                                  --       RESPONDENTS










                                    J U D G M E N T










D.K. JAIN, J.:








1. Leave granted.








2.    Challenge   in   this   appeal,   by   special   leave,   is   to   the   legality   and 




      validity of the judgment and order dated 17th January, 2008, delivered 




      by the High Court of Karnataka at Bangalore, whereby the High Court 




      has   allowed   the   appeal   preferred   by   respondent   No.1   herein, 




      enhancing   the   compensation   awarded   to   her   by   the   Motor   Accident 




      Claims Tribunal (for short "the Tribunal") constituted under the Motor 




      Vehicles   Act,   1988   (for   short   "the   Act")   to  `1,80,000/-   along   with 




      interest @ 6% per annum.



3.    To   appreciate   the   controversy,   the   factual   matrix   in   a   nutshell   is   as 




      under :  






          On 28th June 1995, the car in which Mrs. Kusuma, respondent No.1 




in this appeal (hereinafter  referred to as "the claimant"), aged about 36 




years, was travelling from Sullia to Puttur collided with a Bus owned by 




Karnataka   State   Road   Transport   Corporation,   respondent   No.2   herein. 




Due   to   the   impact   of   the   accident,   the   claimant   and   others   sustained 




injuries.  The claimant, who was 30 weeks pregnant, suffered a fatal blow 




on the stomach.   She was admitted in the hospital, where an X-ray and 




scanning of the foetus showed that the baby had died inside the uterus. 




On an induced delivery, the following day she delivered a still born baby. 




The claimant filed a claim petition under Section 166 of the Act before 




the   Tribunal,   Mangalore,   making   a   claim   of  `2,00,000/-   with   cost   and 




interest   at   12%,   towards   the   expenses   incurred   on   medical   treatment, 




mental shock,  pain and loss of child.








4.    The Tribunal vide award dated 5th  October 2004,  inter alia,  held that 




      loss   of   foetus   on   account   of   injury   sustained   by   the   claimant   in   the 




      accident was akin to the death of a child of a tender age.  Relying on a 




      decision of the Karnataka High Court, wherein the Court had awarded 




      a   compensation   of  `25,000/-   towards   the   loss   of   affection   and 




      `25,000/- towards the loss of estate on the death of a child of less than 








                                                                                              2



      1 year of age in an accident, the Tribunal allowed the claim in part and 




      awarded a compensation of an amount of `50,000/- towards the loss of 




      unborn   child   and   a   further   sum   of  `10,000/-   towards   pain   and 




      sufferings   to   the   claimant,   along   with   an   interest   @   6%   per   annum 




      from   18th  November   1995   i.e.   the   date   of   institution   of   the   claim 




      petition till the date of deposit/payment.  The Insurance Company, the 




      appellant in this appeal, was directed to pay the said compensation to 




      the   claimant,   in   order   to   indemnify   the   owner   of   the   car.     Claim 




      petition against the owner of the Bus was rejected.








5. Dissatisfied   with   the   quantum   of   compensation   awarded   by   the 




      Tribunal, the claimant filed an appeal before the High Court, seeking 




      enhancement   of   the   aforesaid   compensation.     Pertinently,   the 




      Insurance Company did not question the award.








6.    Applying   the   principle   indicated   by   this   Court   in  New   India  




      Assurance   Company   Ltd.  Vs.  Satender   &   Ors.1,  in   relation   to 




      assessment of quantum of compensation on the death of a child in an 




      accident, the High Court, by a short judgment allowed the appeal in 




      part   and   enhanced   the   compensation   to   a   consolidated   amount   of 




      `1,80,000/- with interest @ 6% per annum from the date of the petition 




      till the date of payment.








1 (2006) 13 SCC 60








                                                                                         3



7. Being aggrieved, the Insurance Company is before us in this appeal. 








8.    At the time of issuing notice to the respondents, at the first blush, it 




      was   felt   that   the   appeal   involved   a   very   important   question   of   law, 




      namely, whether an unborn child (foetus) while still in mother's womb 




      can   be   considered   to   be   a   child   for   the   purpose   of   claiming 




      compensation under Section 166 of the Act and, therefore, Mr. Uday 




      U. Lalit, Senior Advocate, was requested to assist the Court as Amicus 




      Curiae. Accordingly, we heard Mr. Gaurav Aggarwal, learned counsel 




      appearing for the appellant and the learned Amicus Curiae on the said 




      issue.     However,   having   closely   examined   the   fact-situation   as 




      emerging from the record, we are convinced that the appellant cannot 




      be permitted to raise the aforesaid issue. In the present  case, having 




      chosen   not   to   question   the   correctness   of   the   award   made   by   the 




      Tribunal, determining the amount of compensation "towards the loss 




      of unborn child",  the  appellant-Insurance  Company is  now  estopped 




      from   contending   that   an   unborn   child   cannot   be   considered   to   be   a 




      child for the purpose of claiming compensation under Section 166 of 




      the Act.  It is manifest from the impugned judgment that the question 




      for consideration before the High Court in claimant's appeal was with 




      regard   to   the   quantum   of   compensation   and   not   the   entitlement   of 










                                                                                           4



      claim for grievous injury to a 30 weeks old child in utero resulting in 




      the birth of a still born child.








9.    Thus, under the given circumstances, the question that survives for our 




      consideration is whether the quantum of compensation determined by 




      the High Court, at a lump sum amount of  `1,80,000/-, for the loss of 




      still born child, treating it as a child, and towards pain and sufferings 




      to the respondent-claimant awarded by the Tribunal at  `50,000/- and 




      `10,000/- respectively, warrants interference by this Court.








10. On receipt of an application for compensation made under Section 166 






      of the Act, Section 168 of the Act casts an obligation on the Tribunal 




      to determine the amount of compensation "which appears to it to be 




      just".     The  expression  "which   appears  to  it  to  be  just"   gives  a  wide 




      discretion to the Tribunal to determine the compensation which in the 




      opinion of the Tribunal is "just".  Explaining the meaning of the word 




      "just" as appearing in Section 110B of the Motor Vehicles Act, 1939, 




      which was in  pari materia  with Section 168 of the Act, this Court in 




      Helen   C.   Rebello   &   Ors.  Vs.  Maharashtra   State   Road   Transport  




      Corporation & Anr.2 observed thus :








         "The   word   "just",   as   its   nomenclature,   denotes 


         equitability,   fairness   and   reasonableness   having   a   large 


         peripheral   field.     The   largeness   is,   of   course,   not 






2 (1999) 1 SCC 90








                                                                                      5



       arbitrary; it is restricted by the conscience which is fair, 


       reasonable   and   equitable,   if   it   exceeds;   it   is   termed   as 


       unfair,   unreasonable,   unequitable,   not   just.   Thus,   this 


       field of wider discretion of the Tribunal has to be within 


       the   said   limitations   and   the   limitations   under   any 


       provision   of  this   Act   or   any   other   provision   having   the 


       force of law."








11. Thus, the word "just" connotes something which is equitable, fair and 






   reasonable,  conforming to  rectitude   and  justice   and not  arbitrary.     It 




   may be  true that Section 168 of the Act confers a wide discretion  on 




   the   Tribunal   to   determine   the   amount   of   compensation   but   this 




   discretion is also coupled with a duty to see that this exercise is carried 




   out   rationally   and   judiciously     by   accepted   legal   standards   and   not 




   whimsically and arbitrarily, a concept unknown to public law.     The 




   amount of compensation awarded is not expected to be a windfall or 




   bonanza for the victim or his dependent, as the case may be, but at the 




   same time it should not be niggardly or a pittance. Thus, determination 




   of "just"  amount of compensation  is beset  with difficulties,  more so 




   when the deceased happens to be an infant/ child because the future of 




   a child is full of glorious uncertainties. In the case of death of an infant 




   many   imponderables,   like   life   expectancy   of   the   deceased,   his 




   prospects   to   earn,   save,   spend   and   distribute   have   to   be   taken   into 




   account.     It   is   quite   possible   that   there   may   be   no   actual   pecuniary 




   benefit which may be derived by his parents during the life time of the 










                                                                                          6



   child.  But at the same time that cannot be a ground to reject the claim 




   of   the   parents,   albeit   they   establish   that   they   had   reasonable 




   expectation of pecuniary benefit if the child had lived.   The question 




   whether there exists a reasonable expectation  of pecuniary benefit is 




   always   a   mixed   question   of   fact   and   law   but   a   mere   speculative 




   possibility   of   benefit   is   not   sufficient.     In  Satender   &   Ors.  (supra), 




   relied   upon   by   the   High   Court,   while   dealing   with   a   claim   for 




   compensation under the Act in relation to the death of a nine year old 




   child in a truck accident, this Court had observed as follows :








       "9.   There   are   some   aspects   of   human   life   which   are 


       capable   of   monetary   measurement,   but   the   totality   of 


       human life is like the beauty of sunrise or the splendor of 


       the   stars,   beyond   the   reach   of   monetary   tape-measure. 


       The  determination  of damages  for loss of human life is 


       an   extremely   difficult   task   and   it   becomes   all   the   more 


       baffling   when   the   deceased   is   a   child   and/or   a   non-


       earning   person.     The   future   of   a   child   is   uncertain. 


       Where the deceased was a child, he was earning nothing 


       but had a prospect to earn.  The question of assessment of 


       compensation, therefore, becomes stiffer.   The figure of 


       compensation   in   such   cases   involves   a   good   deal   of 


       guesswork.   In   cases,   where   parents   are   claimants, 


       relevant factor would be age of parents."








12.It was further observed that: 








       "In   cases   of   young   children   of   tender   age,   in   view   of 


       uncertainties abound, neither their income at the time of 


       death   nor   the   prospects   of   the   future   increase   in   their 


       income   nor   chances   of   advancement   of   their   career   are 


       capable of proper determination on estimated basis.  The 


       reason   is   that   at   such   an   early   age,   the   uncertainties   in 






                                                                                         7



        regard to their academic pursuits, achievements in career 


        and   thereafter   advancement   in   life   are   so   many   that 


        nothing   can   be   assumed   with   reasonable   certainty. 


        Therefore,   neither   the   income   of   the   deceased   child   is 


        capable   of   assessment   on   estimated   basis   nor   the 


        financial   loss   suffered   by   the   parents   is   capable   of 


        mathematical computation."








13. It   is   quite   true,   as   observed   in  Satender   &   Ors.  (supra),   that   the 






    question of assessment of compensation in a case where the deceased 




    is   an   infant   involves   a   good   deal   of   guesswork   but   in   our   view   it 




    cannot  be a wild guesswork.   As aforesaid,  some material  has to be 




    adduced by the claimants to prove that they entertained a reasonable 




    expectation of pecuniary advantage from the deceased. There are quite 




    a   few   precedents   providing   guidelines   for   determination   of 




    compensation   in   such   cases   but   because   of   nature   of   the   order   we 




    propose to pass on facts in hand, we deem it unnecessary to burden the 




    judgment by making a reference to all these cases, except to note that 




    in  Lata Wadhwa & Ors.  Vs.  State of Bihar & Ors.3   as also in  M.S.  




    Grewal   &   Anr.    Vs.  Deep   Chand   Sood   &   Ors.4,    wherein   a   large 




    number   of   young   school   going   children   had   lost   their   lives, 




    respectively in fire and by drowning, multiplier method was adopted 




    and applied for assigning value of future dependency to determine the 




    quantum of compensation.








3 (2001) 8 SCC 197


4 (2001) 8 SCC 151








                                                                                           8



14. Having examined the instant case on the touchstone of the aforestated 






   broad principles,  we are of the opinion that neither the Tribunal nor 




   the High Court applied any principle for determination of the amount 




   of   compensation   on   account   of   the   death   of   a   still   born   child.     It   is 




   clear from a bare reading of the orders of the Tribunal and the High 




   Court   that   no   reasons   have   been   indicated   by   the   Tribunal   while 




   awarding a lump sum amount of `50,000/- towards the loss of unborn 




   child and  `10,000/- towards pain and suffering to the mother  and by 




   the High Court enhancing the said amounts to a consolidated amount 




   of `1,80,000/-. Besides, in the impugned judgment, we do not find any 




   discussion on the question of non-pecuniary compensation awarded by 




   the Tribunal to the claimant-mother on account of pain and suffering 




   as a result of death of the child.  In the normal course, we would have 




   remanded   the   matter   back   to   the   Tribunal   for   fresh   consideration. 




   However, bearing in mind the quantum of compensation awarded by 




   the courts below and the fact that the accident took place in the year 




   1995, we are of the opinion that at this juncture it would be too harsh 




   to direct the claimants to undergo the entire gamut of a fresh exercise 




   under   Section   168   of   the   Act.     Therefore,   in   the   facts   and 




   circumstances   of   the   case,   we   refrain   from   interfering   with   the 




   impugned judgment and dismiss the appeal accordingly, with no order 




   as to costs.






                                                                                               9



15.Before   concluding,   we   place   on   record   our   appreciation   for   the 




   valuable   assistance   rendered   by   Mr.   Uday   U.   Lalit,   the   learned 




   Amicus Curiae.










                                             ...........................................


                                                 (D.K. JAIN, J.) 








                                                     ............................................


                                                (R.M. LODHA, J.)


NEW DELHI;


AUGUST 23, 2011.


ARS










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