Can High Court Enhance Compensation To Claimants In An Appeal Of Insurance Company? Supreme Court To Consider

Can High Court enhance compensation to the claimants in an appeal filed by Insurance Company? The Supreme Court would examine this issue in an appeal filed against a Delhi High Court judgment.

In this case, a minor boy was driving a motor cycle which hit with a bus. The Motor Accidents Claim Tribunal awarded compensation to the claimants which was challenged by the Insurance Company before the High Court in appeal. The High Court, without there being a cross appeal or cross objection by the claimants, enhanced the compensation amount.

Before the Apex Court bench comprising Justice Sanjay Kishan Kaul, Dinesh Maheshwari and Hrishikesh Roy, the Insurance Company contended that the enhancement is contrary to the law laid down in Ranjana Prakash & Ors. vs. Divisional Manager & Anr., 2011 8 SCALE 240. It was also contended that the deceased driving motor cycle was a minor and thus the factor of contributory negligence should have been taken into account. Further contention was that an amount for loss of consortium has been granted of Rs. 1 lakh contrary to the amount set forth in National Insurance Company Ltd. Vs. Praney Sethi & Ors., (2017))16 SCC 680.

Staying the impugned order, the bench issued notice in the Special Leave Petition.

In Ranjana Prakash (Supra), it was observed thus: "Where an appeal is filed challenging the quantum of compensation, irrespective of who files the appeal, the appropriate course for the High Court is to examine the facts and by applying the relevant principles, determine the just compensation. If the compensation determined by it is higher than the compensation awarded by the Tribunal, the High Court will allow the appeal, if it is by the claimants and dismiss the appeal, if it is by the owner/insurer. Similarly, if the compensation determined by the High Court is lesser than the compensation awarded by the Tribunal, the High Court will dismiss any appeal by the claimants for enhancement, but allow any appeal by owner/insurer for reduction. The High Court cannot obviously increase the compensation in an appeal by owner/insurer for reducing the compensation, nor can it reduce the compensation in an appeal by the claimants seeking enhancement of compensation."

Case: ORIENTAL INSURANCE CO. LTD. vs. SARDAR SINGH  [SLP(C) 14319/2020 ]

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