Case Note & Summary
The appellants, Thota Sayyed and his wife Shamshad Sayyed, owned a newly constructed residential bungalow in Goa. An air crash occurred, causing the complete destruction of their bungalow. They filed a Writ Petition before the Bombay High Court at Goa claiming compensation for the damages. The learned Mamlatdar filed a report assessing the damages. The trial court partly decreed the suit and directed the respondents (Union of India and the Flag Officer Commanding, Goa) to pay Rs.52,00,000 after deducting Rs.30,00,000 already received by the appellants. The appellants appealed for enhancement of compensation, while the respondents filed cross-objections seeking reduction. The High Court considered the evidence, including the Mamlatdar's report and the cost of reconstruction. It held that compensation for destruction of property should be based on the actual loss and cost of reconstruction, not merely market value. The court enhanced the compensation to Rs.1,02,00,000, with interest at 6% per annum from the date of the suit till realization. The cross-objections were dismissed. The judgment was delivered by a Division Bench comprising F. M. Reis and K. L. Wadane, JJ on 7th April 2015.
Headnote
A) Tort Law - Compensation for Property Damage - Air Crash - The appellants' bungalow was destroyed by an air crash; the trial court awarded Rs.52,00,000 after deducting Rs.30,00,000 already received. The High Court enhanced compensation to Rs.1,02,00,000, holding that compensation should be based on the cost of reconstruction and actual loss suffered, not merely the market value of the property. (Paras 1-10) B) Civil Procedure - Cross-Objections - Reduction of Compensation - The respondents filed cross-objections seeking reduction of compensation, but the High Court found no error in the trial court's assessment and dismissed the cross-objections. (Paras 11-12)
Issue of Consideration
Whether the compensation awarded by the trial court for the destruction of a residential bungalow due to an air crash is adequate and whether the appellants are entitled to enhanced compensation.
Final Decision
The appeal is partly allowed. The respondents are directed to pay a sum of Rs.1,02,00,000 to the appellants with interest at 6% per annum from the date of the suit till realization, after deducting Rs.30,00,000 already received. Cross-objections are dismissed.
Law Points
- Compensation for destruction of property must be based on cost of reconstruction or actual loss
- not market value
- interest on compensation is discretionary
- cross-objections for reduction of compensation may be dismissed if no error in trial court's assessment.
