Rupa Roy v. The New India Assurance Company Ltd.
Background
The appellant's minor son, then about 10 years old, suffered severe injuries when the rickshaw van he was travelling in with his mother was struck head-on by a speeding Matador van in 2004. He was left with 70% permanent orthopaedic disability (post-traumatic paraplegia and weakness in his right hand). The Motor Accident Claims Tribunal awarded only Rs. 2,00,000 in compensation, and the Calcutta High Court dismissed the appellant's appeal for enhancement without giving any reasons.
Decision Breakdown
The Supreme Court held that the High Court committed a jurisdictional error by dismissing the appeal without discussing the evidence or assigning any reasons, contrary to settled law on the scope of appellate powers under Section 173 of the Motor Vehicles Act (akin to Section 96 CPC). Examining the evidence itself, the Court found the 70% permanent disability suffered by a 10-year-old amply proved and considered the original award grossly inadequate. It set aside the High Court's order and enhanced the compensation from Rs. 2,00,000 to a lump sum of Rs. 10,00,000, with 6% interest from the date of the High Court's order, to be paid within three months, along with Rs. 10,000 as counsel fees.
Lesson Learnt
Appellate courts must give reasoned orders when deciding compensation appeals: a bare affirmation without discussion of evidence is itself a legal error; and courts will look closely at the real, lifelong impact of an injury (especially on a child) rather than mechanically accepting a low tribunal award.