Introduction:

In the matter of Cholamandalam MS General Insurance Co. Ltd. vs Charu Ashok Khandal (First Appeal 154 of 2022), the Bombay High Court, through a Division Bench comprising Justices Girish Kulkarni and Advait Sethna, upheld the Rs 62.2 lakh compensation awarded by the Motor Accident Claims Tribunal (MACT) to the family of Charu Khandal, a 28-year-old character animator employed with Red Chillies Entertainment, a company owned by Bollywood actor Shahrukh Khan. Khandal had suffered severe spinal injuries in a road accident on March 25, 2012, and despite years of medical treatment, succumbed to her injuries nearly five years later on January 17, 2017. The Insurance Company challenged the November 27, 2020, MACT order primarily because Khandal’s death occurred several years after the accident, arguing a disconnect between the accident and the eventual death. Advocates Rajesh Kanojia and Deepika Prabhala, appearing for the insurer, contended that the compensation was excessive and further questioned the causal link between the accident and her demise.

Judgement:

However, the Court held that the claimants were entitled to compensation in light of the continuous chain of events stemming from the accident, citing that the Motor Vehicles Act is a beneficial legislation that must be interpreted in light of the right to live with dignity as guaranteed under Article 21 of the Constitution. The Bench described the case as a “tragic saga” of a young woman who faced immense suffering for years post the accident and ultimately died due to complications from the injuries. The Court dismissed the insurer’s appeal, finding that the MACT had rightly followed settled legal principles and that there was no irregularity in its findings. The Court underlined that courts cannot adopt a pedantic approach in such life-and-death matters and that fair compensation, if not perfect, must be ensured. It also remarked that verifying every medical bill with mathematical accuracy is neither required nor appropriate in such tragic scenarios.