The Supreme Court enhanced the compensation awarded to Baby Sakshi, a minor victim of a road accident that left her with 75% permanent disability due to mental retardation. The Court emphasized liberal compensation for permanent disabilities impacting earning capacity, quality of life, and marital prospects.

1. Incident Overview:

• Date: June 2, 2009.
• Location: ITO, Delhi.
• A seven-year-old was hit by a speeding car while crossing on a zebra crossing.

2. Claim under Section 166 of the Motor Vehicles Act, 1988:

• Filed by the appellant's father.
• The Tribunal initially awarded ₹5,90,750/- with 7.5% interest.

3. High Court Enhancement:

• Compensation increased to ₹11,51,000/-.
• Enhanced interest rate: 9% per annum.

4. Supreme Court Appeal and Decision:

• Issues raised: Insufficient compensation for attendant care, pain, suffering, and future treatment.
• Final compensation enhanced to ₹50,87,000/-.

Acts and Sections Discussed:

1. Motor Vehicles Act, 1988:
   • Section 166: Provision for filing claims for compensation due to motor vehicle accidents.

Ratio Decidendi:

• Broad Interpretation for Justice: Compensation must adequately cover pecuniary and non-pecuniary damages, including future medical costs, loss of earning capacity, and quality of life.
• Precedents Relied Upon: Cases such as Kajal v. Jagdish Chand emphasized liberal compensation for children facing permanent mental and physical disabilities.

Subjects:

Motor Vehicles Act, Disability Compensation, Child Welfare, Justice Enhancement, Road Safety.