Damages must consider inflation

A weekly selection of key court orders

The fall in the value of money due to inflation is an important factor to be considered while computing compensation in road accident claims, the Supreme Court has stated in the case, V Mekala vs M Malathi. The motor vehicle accident tribunal and the Madras High Court had not adequately taken this into account. The tribunal awarded Rs 6.46 lakh to a 16-year-old girl who was permanently disabled in an accident. She held first rank in the board examination. On appeal, the high court raised the damages to Rs 18.22 lakh. The Supreme Court found that the calculation of the losses was not adequate and raised the amount to Rs 31 lakh. Such a brilliant student could have got a good job with perks and allowances these days, the judgment said, and added that the loss of prospects of marriage was also an important factor to be considered.

HCs to not re-assess evidence
The Supreme Court has reiterated that high courts should not interfere in the findings of facts by the courts and tribunals below to arrive at its own conclusion. In this case, Iswarlal vs Paschim Gujarat Vij Co, the employee was working for Bhavnagar Electricity Co which was taken over by Gujarat Vij. The employee wanted to correct his date of birth in the records, which was not allowed. He superannuated on the wrong date. He moved the labour court which upheld his claim. However, the high court set it aside. On the employee's appeal, the Supreme Court stated that the high court should not have gone into evidence, which was the function of the labour court. The employee was ordered to be reinstated with full wages and benefits till the real date of superannuation.