SC RESTORED THE COMPENSATION AMOUNT OF RS. 88,73,798 AWARDED TO THE STUDENT BY STATE COMMISSION.

The Supreme Court was hearing an appeal against the reduction of compensation offered by the National Consumer Redressal Commission in the context of a case of a student who fell ill and eventually was bed-ridden while on a school tour, owing to alleged negligence. In the said case, the SC restored the compensation amount of Rs.88,73,798 awarded to the student by the State Commission.

The National Commission and the State Commission concurrently concluded that it was indeed gross negligence on the part of the teachers accompanying the complainant and the other children while performing their duty. However, The National Commission reaffirmed the State Commission's decision that a compensation of Rs. 50 Lakhs was fair.

The Supreme Court observed that the appellate authority has the jurisdiction to reduce the compensation and it draws its source from the power of judicial discretion to be exercised in the facts of the case.

The bench comprising of Justice Navin Sinha and Justice Subhash Reddy observed that the order should reflect consideration of the facts of the case as well as briefly discussed why the appellate authority held the opinion that the exercise of judicial discretion was called for including the discussion as to why it opined the compensation to be excessive requiring reduction.