Case: Nagappa Mahadev Doddaamani Vs. New India Assurance Company Limited and Another

2. The Tribunal awarded a sum of Rs. one lakh for an injury which resulted in shortening of one leg of the victim by approximately two inches. The question of adequacy of the amount of Rs. one lakh as compensation does not arise for consideration since the claimant did not demand a higher amount. However, the insurer challenged the quantum and the High Court had reduced that amount from Rs. one lakh to Rs. 80, 000 only. Hence, this appeal by special leave

Court's reasoning:
3. We are unable to uphold the High Courts judgment reducing the amount of compensation from Rs. one lakh to Rs. 80, 000 for no cogent reasons. It is settled that in appeal interference is made with the quantum of compensation only on the ground of inadequacy or the same being too excessive, as the case may be. Obviously, in this case the amount of Rs. one lakh could not be called too excessive nor was that the view taken by the High Court which merely reduced the amount to Rs. 80, 000 without giving any supporting reasons to satisfy the legal requirement. The High Courts judgment is, therefore, set aside