NATIONAL INSURANCE CO. LTD. vs S.SANDHYA RAJ

AFTER hearing Counsel appearing on both sides, we are satisfied that there is force in the contention advanced by the Appellant-National Insurance Co. Ltd. that the State Commission committed an illegality in awarding compensation under the heads 2 and 3 mentioned in paragraph 22 of its order without any discussion of the evidence and without giving any indication in the order as to the basis on which the quantification of compensation has been made.

AS regards the amount awarded under Item No. 1 set out in the said paragraph, we are satisfied that the State Commission was fully justified in directing the payment of Rs. 31,400/- as representing the cost of repairs etc. This portion of the order of the State Commission will therefore stand confirmed. The further directions given by the State Commission for payment of Rs. 1,35,000/- by way of compensation under Item No. 2 and Rs. 3.00 lacs that has been awarded as compensation for mental agony under Item No. 3 are hereby vacated. We direct that the question as to what compensation, if any, is payable to the Complainant under Item Nos. 2 and 3 shall be gone into afresh by the State Commission and fresh findings recorded thereon after a full and detailed consideration of the evidence on record and also such further evidence, if any, that may be produced before it by both parties after remand. The case is remanded to the State Commission for the limited purpose indicated above, it is made clear that the award made by the State Commission of compensation of Rs. 31,400/-under Item No. 1 is left undisturbed. The cost of the case will depend upon the further adjudication of the case by the State Commission and willbe provided in the further order that will be passed by it. The Counsel appearing for the Appellant assures us that the balance amount payable under Item No. 1 after setting off a sum of Rs. 25,000/- deposited in compliance with the interim order passed by this Commission, will be paid by it within three weeks from today. This submission is recorded.