Court Applies Inflation Adjustment to Award Rs. 30.78 Lakhs with 6% Interest to Bereaved Family
In a significant development, the Delhi High Court has enhanced the compensation awarded to the family of a 9-year-old boy who tragically died after falling into an unsecured pit on land under the control of the Delhi Jal Board. The court increased the compensation to Rs. 30,78,947, factoring in inflation and the erosion of money value, while maintaining the interest rate at 6% per annum from the date of the incident.
The case arose after the death of Master Justin/Joy, who slipped into a water-filled pit on July 20, 2016, while playing in the locality. The appellants, his parents, had originally been awarded Rs. 22,00,000 by a single judge, which they contested was inadequate given inflation and the loss of future earnings potential.
In their appeal, the parents, represented by advocates Ms. Aruna Mehta and Mr. Lakshay Mehta, argued that the initial compensation failed to consider future prospects and inflationary effects adequately. They proposed a revised calculation based on the father's income, adjusted for inflation using a multiplicand factor of 1.5, which is a recognized method in similar cases.
The court, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, acknowledged the necessity of adjusting compensation for inflation and the devaluation of money over time. The bench noted that the use of a 1.5 multiplicand factor is consistent with past judgments and aimed at ensuring fair restitution.
While the compensation amount was significantly increased, the court decided against raising the interest rate to 9%, as sought by the appellants, keeping it at 6% in alignment with precedents in similar cases.
The ruling underscores the judiciary's role in ensuring that compensation for loss, especially in cases involving minors, reflects current economic realities and offers fair redressal to aggrieved families.
Bottom line:-
Compensation in cases involving death of children must consider inflation and erosion of money value by applying a multiplicand factor to ensure just and fair restitution.
Statutory provision(s): Article 226 of the Constitution of India, Motor Vehicles Act, 1988
Pravesh Kumar v. Delhi Jal Board, (Delhi)(DB) : Law Finder Doc id # 2909890
