Supreme Court Hears Appeal Against Orissa High Court's Enhancement of Compensation in Infant's Road Accident Disability Case; Considers Adequacy of Rs. 45.40 Lakhs Award for 90% Permanent Paralysis Under Motor Vehicles Act, 1988.

Motor accident compensation claim by minor victim through her mother as natural guardian.

Enhancement of compensation from Rs. 45,40,800 to a just and fair amount under various heads, and increase in interest rate to 9% per annum.

Inadequate compensation awarded by the High Court for 90% permanent disability with lifelong consequences, failing to constitute 'just compensation' under the Motor Vehicles Act.

M.A.C.T., Cuttack, awarded Rs. 30,12,960 with 6% interest on 16.04.2022. High Court of Orissa enhanced it to Rs. 45,40,800 with 6% interest on 11.01.2023.

Whether the compensation awarded by the High Court is just and adequate considering the 90% permanent disability and lifelong dependency? Whether the multiplier of 15 applied by the High Court was correct, or should it be 18 as applied by the Tribunal? Whether the award under non-pecuniary heads (future attendant charges, loss of amenities, marriage prospects) was sufficient? Whether the interest rate of 6% per annum is reasonable, or should be enhanced to 9%?

Appellant argued that the compensation was not 'just' under the MV Act, given the victim’s 90% permanent disability with paraplegia, total immobility, and need for lifelong attendant care. The High Court erred by using a multiplier of 15 instead of 18, and awarded inadequate amounts for future attendant charges, loss of marriage prospects, and loss of amenities. Reliance was placed on Kajal v. Jagdish Chand and R. Halle v. Reliance General Insurance Co. to emphasize holistic compensation for child victims. The interest rate of 6% was insufficient and should be 9%. Respondent-insurer contended that the High Court had already enhanced the compensation substantially after considering all evidence, and the award was just and reasonable. Judicial discretion was properly exercised, and unless it is manifestly inadequate, no further interference is warranted. The insurer submitted that the High Court had granted additional amounts for loss of future life expectations, marriage prospects, medical treatment, and attendant charges, and the award was fair.

The percentage of disability has been assessed at 90%. The disability is permanent in nature and would require a lifetime of medication and support. While modifying the calculation of future loss of earning capacity by applying the multiplier of 15 instead of 18, as applied by the MACT, the High Court, however, enhanced the compensation under various non-pecuniary heads... Consequently, the total compensation awarded stood enhanced from Rs. 30,12,960.00 to Rs. 45,40,800.00. She has been diagnosed with post-trauma myelopathy with paraplegia which is irreversible and a lifelong medical condition.

The motor accident occurred on 16.06.2015. The minor victim Shreejita Pattnaik, represented by her mother, filed M.A.C. Case No. 572 of 2015 before the 2nd Additional District Judge-cum-3rd Motor Accident Claims Tribunal, Cuttack. The Tribunal awarded Rs. 30,12,960 with 6% interest on 16.04.2022. The mother appealed to the High Court of Orissa (MACA No. 283 of 2022), which by judgment dated 11.01.2023 enhanced the compensation to Rs. 45,40,800 with 6% interest. The aggrieved mother filed a special leave petition before the Supreme Court. The Supreme Court issued notice on 28.08.2023. The matter was referred to Lok Adalat but remained unsettled. Leave was granted on 05.05.2026, and the appeal was heard. The judgment text was truncated post submissions.

• Motor Vehicles Act, 1988:
• Indian Penal Code, 1860: 279, 337, 338