Full Judgment Text
| V.<br>ST<br>S.<br>ju<br>(h<br>m<br>Go<br>aw | REPORTABLE<br>IN THE SUPREME COURT OF INDIA<br>CIVIL APPELLATE JURISDICTION<br>CIVIL APPEAL No. 8065 OF 2009<br>KRISHNAKUMAR .. APPELLANT<br>VERSUS<br>ATE OF TAMIL NADU & ORS. ..RESPONDENTS<br>With<br>CIVIL APPEAL No. 5402 OF 2010<br>JUDGMENT<br>JUDGMENT<br>A. BOBDE, J.<br>These two Civil Appeals are preferred against the<br>dgment of National Consumer Disputes Redressal Commission<br>ereinafter referred to as the ‘NCDRC’) rendering a finding of<br>edical negligence against the State of Tamil Nadu, its<br>vernment Hospital and two Government Doctors and<br>arding a sum of Rs.5,00,000/- to V. Krishnakumar. Civil<br>1 |
|---|
Page 1
| Ap<br>en<br>54<br>an<br>th<br>co<br>2.<br>La<br>Ch<br>“H<br>w<br>of<br>inf<br>25<br>23<br>ba<br>an<br>Th<br>Sh<br>Ne<br>an<br>Un | peal No. 8065 of 2009 is preferred by V. Krishnakumar for<br>hancement of the amount of compensation. Civil Appeal No.<br>02 of 2010 is preferred by the State of Tamil Nadu and<br>other against the judgment of the NCDRC. As facts of both<br>e appeals are same, we are disposing the appeals by this<br>mmon judgment.<br>On 30.8.1996, the appellant V. Krishankumar's wife<br>xmi was admitted in Government Hospital for Women and<br>ildren, Egmore, Chennai (hereinafter referred to as the<br>ospital”). Against the normal gestation period of 38 to 40<br>eeks, she delivered a premature female baby in the 29th week<br>pregnancy. The baby weighed only 1250 grams at birth. The<br>ant was placed in an incubator in intensive care unit for about<br>days. The mother and the baby were discharged on<br>.9.1996. A fact which is relevant to the issue is, that the<br>JUDGMENT<br>by was administered 90-100% oxygen at the time of birth<br>d underwent blood exchange transfusion a week after birth.<br>e baby had apneic spells during the first 10 days of her life.<br>e was under the care of Respondent No.3 - Dr. S.Gopaul,<br>o-paediatrician and Chief of Neo Natology Unit of the Hospital<br>d Respondent No.4 - Dr. Duraiswamy of the Neo Natology<br>it of the Hospital. The Respondent No.2 is the Director of the<br>2 |
|---|
Page 2
| Ho<br>St<br>3.<br>30<br>tr<br>Re<br>du<br>to<br>gi<br>co<br>be<br>w<br>w<br>gi<br>kn<br>to<br>a<br>Do<br>Pu<br>ch<br>4.<br>co | spital, which is established and run by the Respondent No.1 –<br>ate of Tamil Nadu under the Department of Health.<br>The baby and the mother visited the hospital on<br>.10.1996 at the chronological age of 9 weeks. Follow up<br>eatment was administered at the home of the appellant by<br>spondent No.4, the Government Doctor, Dr. Duraiswamy<br>ring home visits. The baby was under his care from 4 weeks<br>13 weeks of chronological age. Apparently, the only advice<br>ven by Respondent No.4 was to keep the baby isolated and<br>nfined to the four walls of the sterile room so that she could<br>protected from infection. What was completely overlooked<br>as a well known medical phenomenon that a premature baby<br>ho has been administered supplemental oxygen and has been<br>ven blood transfusion is prone to a higher risk of a disease<br>own as the Retinopathy of Prematurity (hereinafter referred<br>JUDGMENT<br>as ‘ROP’), which, in the usual course of advancement makes<br>child blind. The Respondent No.3, who was also a Government<br>ctor, checked up the baby at his private clinic at<br>rassaiwakkam, Chennai when the baby was 14-15 weeks of<br>ronological age also did not suggest a check up for ROP.<br>One thing is clear about the disease, and this was not<br>ntested by the learned counsel for the respondents, that the<br>3 |
|---|
Page 3
| di<br>ha<br>bi<br>pr<br>co<br>co<br>W<br>ca<br>Th<br>an<br>st<br>or<br>so<br>ke<br>pr<br>be<br>m<br>to<br>up | sease occurs in infants who are prematurely born and who<br>ve been administered oxygen and blood transfusion upon<br>rth and further, that if detected early enough, it can be<br>evented. It is said that prematurity is one of the most<br>mmon causes of blindness and is caused by an initial<br>nstriction and then rapid growth of blood vessels in the retina.<br>hen the blood vessels leak, they cause scarring. These scars<br>n later shrink and pull on the retina, sometimes detaching it.<br>e disease advances in severity through five stages - 1, 2, 3, 4<br>d 5 (5 being terminal stage). Medical literature suggests that<br>age 3 can be treated by Laser or Cryotherapy treatment in<br>der to eliminate the abnormal vessels. Even in stage 4, in<br>me cases, the central retina or macula remains intact thereby<br>eping intact the central vision. When the disease is allowed to<br>ogress to stage 5, there is a total detachment and the retina<br>JUDGMENT<br>comes funnel shaped leading to blindness. There is ample<br>edical literature on the subject. It is, however, not necessary<br>refer all of it. Some material relevant to the need for check<br>for ROP for an infant is:<br>“All infants with a birth weight less than 1500 gms or<br>gestational age less than 32 weeks are required to be<br>screened for ROP.”1<br>1 AIIMS Report dated 21.8.2007<br>4 |
|---|
Page 4
| ag<br>th<br>pr<br>5.<br>ge<br>fo<br>6.<br>no<br>si<br>th<br>th<br>ge<br>re<br>no<br>di<br>in<br>7.<br>qu | Applying either parameter, whether weight or gestational<br>e, the child ought to have been screened. As stated earlier,<br>e child was 1250 gms at birth and born after 29 weeks of<br>egnancy, thus making her a high risk candidate for ROP.<br>It is undisputed that the relationship of birth weight and<br>stational age to ROP as reproduced in NCDRC’s order is as<br>llows:<br>“Most ROP is seen in very low-birth weight infants, and the<br>incidence is inversely related to birth weight and<br>gestational age. About 70-80% of infants with birth weight<br>less than 1000 gms show acute changes, whereas above<br>1500 gms birth weight the frequency falls to less than<br>10%.”<br>Again, it seems that the child in question was clearly<br>t in the category where the frequency was less than 10%<br>nce the baby was below 1500 gms. In fact, it is observed by<br>e NCDRC in its order that the discipline of medicine reveals<br>JUDGMENT<br>at all infants who had undergone less than 29 weeks of<br>station or weigh less than 1300 gms should be examined<br>gardless of whether they have been administered oxygen or<br>t. It is further observed that ROP is a visually devastative<br>sease that often can be treated successfully if it is diagnosed<br>time.<br>The need for a medical check up for the infant in<br>estion was not seriously disputed by the respondents.<br>5 |
|---|
Page 5
| 8.<br>of<br>w<br>de<br>pr<br>of<br>ev<br>fo<br>9.<br>sh<br>th<br>wi<br>ha<br>of<br>in<br>da<br>ob<br>ap<br>op<br>RO | The main defence of the respondents to the complaint<br>negligence against the appellant’s claim for compensation<br>as that at the time of delivery and management, no<br>formities were manifested and the complainant was given<br>oper advice, which was not followed. It was argued on behalf<br>the respondent that they had taken sufficient precautions,<br>en against ROP by mentioning in the discharge summary as<br>llows:<br>“Mother confident; Informed about alarm signs; 1) to<br>continue breast feeding 2) To attend post natal O.P. on<br>Tuesday."<br>It must, however, be noted that the discharge summary<br>ows that the above writing was in the nature of a scrawl in<br>e corner of the discharge summary and we are in agreement<br>th the finding of the NCDRC that the said remarks are only a<br>stily writteJn gUeneDralG waMrninEg aNnd Tnothing more. After a stay<br>25 days in the hospital, it was for the hospital to give a clear<br>dication as to what was to be done regarding all possible<br>ngers which a baby in these circumstances faces. It is<br>vious that it did not occur to the respondents to advise the<br>pellant that the baby is required to be seen by a paediatric<br>hthalmologist since there was a possibility of occurrence of<br>P to avert permanent blindness. This discharge summary<br>6 |
|---|
Page 6
| ne<br>inf<br>m<br>ca<br>pr<br>pa<br>un<br>th<br>Tu<br>an<br>It<br>ne<br>w<br>su<br>No<br>w<br>an<br>No<br>ho<br>sa<br>un | ither discloses a warning to the infant’s parents that the<br>ant might develop ROP against which certain precautions<br>ust be taken, nor any signs that the Doctors were themselves<br>utious of the dangers of development of ROP. We are not<br>epared to infer from ‘Informed about alarms signs’ that the<br>rents were cautioned about ROP in this case. We find it<br>fortunate that the respondents at one stage took a stand that<br>e appellant did not follow up properly by not attending on a<br>esday but claiming that the mother attended on a Wednesday<br>d even contesting the fact that she attended on a Wednesday.<br>appears like a desperate attempt to cover up the gross<br>gligence in not examining the child for the onset of ROP,<br>hich is a standard precaution for a well known condition in<br>ch a case. In fact, it is not disputed that the Respondent<br>.3 attended to and examined the baby at his private clinic<br>JUDGMENT<br>hen the baby was 14-15 weeks and even then did not take<br>y step to investigate into the onset of ROP. The Respondent<br>.4 also visited the appellant to check up the baby at the<br>me of the appellant and there are prescriptions issued by the<br>id Respondent No.4, which suggests that the baby was indeed<br>der his care from 4 weeks to 13 weeks.<br>7 |
|---|
Page 7
| 10<br>th<br>(h<br>of<br>co<br>sp | . The NCDRC has relied on the report dated 21.8.2007 of<br>e All India Institute of Medical Sciences, New Delhi<br>ereinafter referred to as ‘AIIMS’). In pursuance of the order<br>the NCDRC, a medical board was constituted by AIIMS<br>nsisting of five members, of which, four are ophthalmological<br>ecialists. The board has given the following opinion:-<br>"A premature infant is not born with Retinopathy of<br>Prematurity (ROP), the retina though immature is normal<br>for this age. The ROP usually starts developing 2-4 weeks<br>after birth when it is mandatory to do the first screening<br>of the child. The current guidelines are to examine and<br>screen the babies with birth weight<1500g and <32<br>weeks gestational age, starting at 31 weeks<br>post-conceptional age (PAC) or 4 weeks after birth<br>whichever is later. Around a decade ago, the guidelines in<br>general were the same and the premature babies were<br>first examined at 31-33 weeks post-conceptional age or<br>2-6 weeks after birth.<br>There is a general agreement on these above guidelines<br>on a national and international level. The attached<br>annexure explains some authoritative resources and<br>guidelines published in national and international<br>literature especially over the last decade.<br>JUDGMENT<br>However, in spite of ongoing interest world over in<br>screening and management of ROP and advancing<br>knowledge, it may not be possible to exactly predict<br>which premature baby will develop ROP and to what<br>extent and why."<br>Review of literature of ROP screening guidelines<br>8 |
|---|
Page 8
| O<br>pr<br>sa | Year Source First Who to<br>Screening screen<br>2006 American 31 wks PCA or 4 <1500gms birth<br>Academy of wks after birth weight or <32<br>Pediatrics et al. whichever later wks GA or<br>higher<br>2003 Jalali S et al. 31 wks PCA or <1500g birth<br>Indian J 3-4 wks after weight or <32<br>Ophthalmology birth whichever wks GA or<br>earlier higher<br>2003 Azad et al. JIMA 32 wks PCA or <1500g birth<br>4-5 wks after weight or <32<br>birth- whichever wks GA or<br>earlier higher<br>2002 Aggarwal R et. 32 wks PCA or <1500 gm birth<br>Al Indian J. 4-6 wks after weight or <32<br>Pediatrics birth whichever wks GA<br>earlier<br>1997 American 31-33 wks PCA <1500 gm birth<br>Academy of or 4-6 wks after weight or <28<br>PaeJdiatUricsD et aGl. MbirtEh NT wks GA or<br>higher<br>1996 Maheshwari R et 32 wks PCA or 2 <1500 gm birth<br>al. National Med. wks after birth weight or <35<br>J. India whichever is wks GA or<br>earlier 02>24 hrs<br>1988 Cryotherapy 4-6 wks after <1250 gms birth<br>ROP Group birth weight<br>ne thing this report reveals clearly and that is that in the<br>esent case the onset of ROP was reasonably foreseeable. We<br>y this because it is well known that if a particular danger<br>9 |
|---|
| Year | Source | First<br>Screening | |
|---|---|---|---|
| 2006 | American<br>Academy of<br>Pediatrics et al. | 31 wks PCA or 4<br>wks after birth<br>whichever later | |
| 2003 | Jalali S et al.<br>Indian J<br>Ophthalmology | 31 wks PCA or<br>3-4 wks after<br>birth whichever<br>earlier | |
| 2003 | Azad et al. JIMA | 32 wks PCA or<br>4-5 wks after<br>birth- whichever<br>earlier | |
| 2002 | Aggarwal R et.<br>Al Indian J.<br>Pediatrics | 32 wks PCA or<br>4-6 wks after<br>birth whichever<br>earlier | |
| 1997 | American<br>Academy of<br>PaeJdiatUricsD et aGl. | 31-33 wks PCA<br>or 4-6 wks after<br>MbirtEh NT | |
| 1996 | Maheshwari R et<br>al. National Med.<br>J. India | 32 wks PCA or 2<br>wks after birth<br>whichever is<br>earlier | |
| 1988 | Cryotherapy<br>ROP Group | 4-6 wks after<br>birth |
Page 9
| co<br>th<br>do<br>Th<br>re<br>an<br>th<br>co<br>re<br>no<br>lo<br>11<br>2<br>sc<br>pe<br>sc<br>re<br>to<br>w<br>fo<br>ne | uld not reasonably have been anticipated it cannot be said<br>at a person has acted negligently, because a reasonable man<br>es not take precautions against unforeseeable circumstances.<br>ough it was fairly suggested to the contrary on behalf of the<br>spondents, there is nothing to indicate that the disease of ROP<br>d its occurrence was not known to the medical profession in<br>e year 1996. This is important because whether the<br>nsequences were foreseeable or not must be measured with<br>ference to knowledge at the date of the alleged negligence,<br>t with hindsight. We are thus satisfied that we are not<br>oking at the 1996 accident with 2007 spectacles.2<br>. It is obvious from the report that ROP starts developing<br>to 4 weeks after birth when it is mandatory to do the first<br>reening of the child. The baby in question was admitted for a<br>riod of 25 days and there was no reason why the mandatory<br>JUDGMENT<br>reening, which is an accepted practice, was not done. The<br>port of the AIIMS (supra) states that ‘it may not be possible<br>exactly predict which premature baby will develop ROP and to<br>hat extent and why’. This in our view underscores the need<br>r a check up in all such cases. In fact, the screening was<br>ver done. There is no evidence whatsoever to suggest to the<br>2 See Roe v. Minister of Health [1954] 2 QB 66 and the discussion in ‘Med<br>Negligence’, Michael Jones, 4th Edition, Sweet & Maxwell, London 2008<br>page 270.<br>10 |
|---|
Page 10
| co<br>di<br>m<br>Kh<br>Do<br>wi<br>No<br>no<br>af<br>ex<br>sh<br>Sa<br>Dr<br>at<br>no<br>co<br>Ta<br>w<br>th<br>M<br>co<br>le | ntrary. It appears from the evidence that the ROP was<br>scovered when the appellant went to Mumbai for a personal<br>atter and took his daughter to a paediatrician, Dr. Rajiv<br>amdar for giving DPT shots when she was 4½ months. That<br>ctor, suspected ROP on an examination with naked eye even<br>thout knowing the baby’s history. But, obviously Respondent<br>s.3 and 4 the Doctors entrusted with the care of the child did<br>t detect any such thing at any time. The helpless parents,<br>ter detection got the baby’s eyes checked by having the baby<br>amined by several doctors at several places. Traumatised and<br>ocked, they rushed to Puttaparthy for the blessings of Shri<br>tya Sai Baba and the baby was anesthetically examined by<br>. Deepak Khosla, Consultant, Department of Ophthalmology<br>Baba Super Specialty Hospital at Puttaparthy. Dr. Khosla did<br>t take up the case since the ROP had reached stage 5. After<br>JUDGMENT<br>ming back from Puttaparthy, the baby was examined by Dr.<br>run Sharma alongwith the retinal team of Shankar Netralaya,<br>ho were also of the same opinion. The parents apparently took<br>e baby to Dr. Namperumal Swamy of Arvind Hospital,<br>adurai, who advised against surgery, stating that the baby’s<br>ndition was unfavourable for surgery. The appellant then<br>arnt of Dr. Michael Tresse, a renowned expert in Retinopathy<br>11 |
|---|
Page 11
| tr<br>re<br>to<br>lig<br>th<br>12<br>w<br>N<br>th<br>oc<br>du<br>af<br>RO<br>ex<br>no<br>m<br>th<br>ac<br>D<br>13<br>N<br>w | eatment for babies in the United States. He obtained a<br>ference from Dr. Badrinath, chief of Shankar Netralaya and<br>ok his only child to the United States hoping for some ray of<br>ht. The appellant incurred enormous expenses for surgery in<br>e United States but to no avail.<br>. Having given our anxious consideration to the matter,<br>e find that no fault can be found with the findings of the<br>CDRC which has given an unequivocal finding that at no stage,<br>e appellant was warned or told about the possibility of<br>currence of ROP by the respondents even though it was their<br>ty to do so. Neither did they explain anywhere in their<br>fidavit that they warned of the possibility of the occurrence of<br>P knowing fully well that the chances of such occurrence<br>isted and that this constituted a gross deficiency in service,<br>r did they refer to a paediatric ophthalmologist. Further it<br>JUDGMENT<br>ay be noted that Respondent Nos. 3 & 4 have not appealed to<br>is Court against the judgment of the NCDRC and have thus<br>cepted the finding of medical negligence against them.<br>eficiency in Service<br>. In the circumstances, we agree with the findings of the<br>CDRC that the respondents were negligent in their duty and<br>ere deficient in their services in not screening the child<br>12 |
|---|
Page 12
| be<br>an<br>ne<br>Re<br>th<br>re<br>RO<br>ca<br>em<br>te<br>Co<br>14<br>co<br>ne<br>ha<br>ne<br>ha<br>pa<br>pr<br>cl<br>Un<br>ou | tween 2 to 4 weeks after birth when it is mandatory to do so<br>d especially since the child was under their care. Thus, the<br>gligence began under the supervision of the Hospital i.e.<br>spondent No.2. The Respondent Nos. 3 and 4, who checked<br>e baby at his private clinic and at the appellant’s home,<br>spectively, were also negligent in not advising screening for<br>P. It is pertinent to note that Respondent Nos. 3 and 4<br>rried on their own private practice while being in the<br>ployment of Respondent No. 2, which was a violation of their<br>rms of service.<br>mpensation<br>. The next question that falls for consideration is the<br>mpensation which the respondents are liable to pay for their<br>gligence and deficiency in service. The child called Sharanya<br>s been rendered blind for life. The darkness in her life can<br>JUDGMENT<br>ver be really compensated for in money terms. Blindness can<br>ve terrible consequences. Though, Sharanya may have<br>rents now, there is no doubt that she will not have that<br>otection and care forever. The family belongs to the middle<br>ass and it is necessary for the father to attend to his work.<br>doubtedly, the mother would not be able to take Sharanya<br>t everywhere and is bound to leave the child alone for<br>13 |
|---|
Page 13
| re<br>w<br>to<br>un<br>sh<br>gr<br>in<br>av<br>co<br>su<br>ne<br>15<br>re<br>on<br>th<br>he<br>16<br>co<br>to<br>(2<br>Pr | asonable spells of time. During this time, it is obvious that she<br>ould require help and maybe later on in life she would have to<br>tally rely on such help. It is therefore difficult to imagine<br>hindered marriage prospects or even a regular career which<br>e may have otherwise pursued with ease. She may also face<br>eat difficulties in getting education. The parents have already<br>curred heavy expenditure on the treatment of Sharanya to no<br>ail. It is, thus, obvious that there should be adequate<br>mpensation for the expenses already incurred, the pain and<br>ffering, lost wages and the future care that would be<br>cessary while accounting for inflationary trends.<br>. There is no doubt that in the future Sharanya would<br>quire further medical attention and would have to incur costs<br>medicines and possible surgery. It can be reasonably said<br>at the blindness has put Sharanya at a great disadvantage in<br>JUDGMENT<br>r pursuit for making a good living to care for herself.<br>. At the outset, it may be noted that in such cases, this<br>urt has ruled out the computation of compensation according<br>the multiplier method. (See Balram Prasad vs. Kunal Saha,<br>014) 1 SCC 384 and Nizam’s Institute of Medical Sciences vs.<br>ashant S. Dhananka and Others, (2009) 6 SCC 1.<br>14 |
|---|
Page 14
| Th<br>us<br>ne<br>Q<br>17<br>sa<br>re<br>M<br>(s<br>An<br>sh<br>po<br>re<br>lo<br>an<br>di | e court rightly warned against the straightjacket approach of<br>ing the multiplier method for calculating damages in medical<br>gligence cases.<br>uantification of Compensation<br>. The principle of awarding compensation that can be<br>fely relied on is restitutio in integrum. This principle has been<br>cognized and relied on in Malay Kumar Ganguly vs. Sukumar<br>ukherjee, (2009) 9 SCC 221 and in Balram Prasad’s case<br>upra), in the following passage from the latter:<br>“170. Indisputably, grant of compensation involving an<br>accident is within the realm of law of torts. It is based on<br>the principle of restitutio in integrum. The said principle<br>provides that a person entitled to damages should, as<br>nearly as possible, get that sum of money which would<br>put him in the same position as he would have been if he<br>had not sustained the wrong. (See Livingstone v.<br>Rawyards Coal Co.).”<br>application of this principle is that the aggrieved person<br>JUDGMENT<br>ould get that sum of money, which would put him in the same<br>sition if he had not sustained the wrong. It must necessarily<br>sult in compensating the aggrieved person for the financial<br>ss suffered due to the event, the pain and suffering undergone<br>d the liability that he/she would have to incur due to the<br>sability caused by the event.<br>15 |
|---|
Page 15
| Pa<br>18<br>Sh<br>su<br>19<br>th<br>sa<br>ca<br>tr<br>ha<br>ph<br>to<br>th<br>(2<br>af<br>ex<br>st<br>Sh<br>De | st Medical Expenses<br>. It is, therefore, necessary to consider the loss which<br>aranya and her parents had to suffer and also to make a<br>itable provision for Sharanya’s future.<br>. The appellant - V. Krishnakumar, Sharanya’s father is<br>e sole earning member of a middle class family. His wife is<br>id to be a qualified accountant, who had to sacrifice her<br>reer to attend to the constant needs of Sharanya. Sharanya’s<br>eatment and the litigation that ensued for almost two decades<br>s been very burdensome on account of the prolonged<br>ysical, mental and financial hardships, which her parents had<br>undergo. It appears that the total expenditure incurred by<br>e appellant from the date of the final verdict of the NCDRC<br>7.5.2009) until December, 2013 is Rs.8,13,240/-. The<br>oresaid amJounUt isD takGen MfroEm tNhe uTncontroverted statement of<br>penditure submitted by the appellant. The appellant has<br>ated that he had incurred the following expenditure for<br>aranya’s treatment, for which there is no effective counter, til<br>cember, 2013: | |||
|---|---|---|---|---|
| Medical Am<br>Expenses | ount | Supporting<br>Document | ||
| a)Till December 28<br>2003 | ,63,771/- | Exhibit P1-P4 | ||
| b)January 2004- 2,5 | 7,600/- | Annexure A-8 | ||
| 16 |
Page 16
| 20<br>an<br>ex<br>as<br>aw<br>un<br>pr<br>ow<br>Ah<br>im<br>of<br>th<br>ch<br>in<br>th | October 2007 | |||
|---|---|---|---|---|
| c)27.5.2009 to 8,1<br>December 2013 | 3,240/- | I.A. No.2 of 2014 in<br>Civil Appeal No. 8065<br>of 2009 | ||
| d)January 2014 – 2,0<br>March 2015 | 3,310/- | Based on I.A. No.2 of<br>2014 in Civil Appeal<br>No. 8065 of 2009 | ||
| Total (a)+(b)+(c) 41<br>+(d) | ,37,921/- | |||
| . Since there is no reason to assume that there has been<br>y change in the expenditure, we have calculated the<br>penditure from January 2014 to March 2015 at the same rate<br>the preceding period. In addition, we also deem it fit to<br>ard a sum of Rs. 1,50,000/- in lieu of the financial hardship<br>dergone particularly by Sharanya’s mother, who became her<br>imary caregiver and was thus prevented from pursuing her<br>n career. In Spring Meadows Hospital and Another v. Harjol<br>luwalia [1998 4 SCC 39] this court acknowledged the<br>JUDGMENT<br>portance of granting compensation to the parents of a victim<br>medical negligence in lieu of their acute mental agony and<br>e lifelong care and attention they would have to give to the<br>ild. This being so, the financial hardship faced by the parents,<br>terms of lost wages and time must also be recognized. Thus,<br>e above expenditure must be allowed.<br>17 |
Page 17
| 21<br>Rs<br>ad<br>ap<br>N<br>Fu<br>22<br>fo<br>20<br>re<br>pe<br>ob<br>re<br>ye<br>ex<br>th<br>82<br>inf<br>aw<br>fa<br>us<br>fu | . We accordingly direct that the above amount i.e.<br>.42,87,921/- shall be paid by the Respondent Nos.1 to 4. In<br>dition, interest at the rate of 6% p.a. shall be paid to the<br>pellant from the date of filing of the petition before the<br>CDRC till the date of payment.<br>ture Medical Expenses<br>. Going by the uncontroverted statement of expenditure<br>r the period from the final verdict of the NCDRC to December,<br>13, the monthly expenditure is stated to be Rs. 13,554/-,<br>sulting in an annual expenditure of Rs. 1,62,648/-. Having<br>rused the various heads of expenditure very carefully, we<br>serve that the medical costs for Sharanya’s treatment will not<br>main static, but are likely to rise substantially in the future<br>ars. Sharanya’s present age is about 18 ½ years. If her life<br>pectancy is taken to be about 70 years, for the next 51 years,<br>JUDGMENT<br>e amount of expenditure, at the same rate will work out to Rs.<br>,95,048/-. It is therefore imperative that we account for<br>lation to ensure that the present value of compensation<br>arded for future medical costs is not unduly diluted, for no<br>ult of the victim of negligence. The impact of inflation affects<br>all. The value of today’s rupee should be determined in the<br>ture. For instance, a sum of Rs. 100 today, in fifteen years,<br>18 |
|---|
Page 18
| gi<br>Rs<br>th<br>of<br>in<br>an<br>th<br>ef<br>A<br>23<br>Th<br>In<br>Th<br>6.<br>ar<br>at<br>flu<br>Th<br>ca | ven a modest 3% inflation rate, would be worth only<br>.64.13. In Wells v. Wells3 the House of Lords observed that<br>e purpose of awarding a lump sum for damages for the costs<br>future care and loss of future earnings was to put the plaintiff<br>the same financial position as if the injury had not occurred,<br>d consequently the courts had the difficult task of ensuring<br>at the award maintained its value in real terms, despite the<br>fect of inflation.<br>pportioning For Inflation<br>. Inflation over time certainly erodes the value of money.<br>e rate of inflation (Wholesale Price Index-Annual Variation) in<br>dia presently is 2 percent4 as per the Reserve Bank of India.<br>e average inflationary rate between 1990-91 and 2014-15 is<br>76 percent as per data from the RBI. In the present case we<br>e of the view that this inflationary principle must be adopted<br>JUDGMENT<br>a conservative rate of 1 percent per annum to keep in mind<br>ctuations over the next 51 years.<br>e formula to compute the required future amount is<br>lculated using the standard future value formula:-<br>FV = PV x (1+r)n<br>PV = Present Value<br>r = rate of return<br>3 [1999] 1 A.C. 345.<br>4 Handbook of Statistics, Reserve Bank of India<br>19 |
|---|
Page 19
| Ac<br>of<br>Rs<br>Co<br>24<br>ot<br>ac<br>ne<br>su<br>inf<br>da<br>pe<br>A<br>re<br>pr<br>of<br>w<br>da<br>Co<br>pr<br>inf | n = time period<br>cordingly, the amount arrived at with an annual inflation rate<br>1 percent over 51 years is Rs.1,37,78,722.90 rounded to<br>.1,38,00,000/-.<br>mparative law<br>. This Court has referred to case law from a number of<br>her major common law jurisdictions on the question of<br>counting for inflation in the computation of awards in medical<br>gligence cases. It is unnecessary to discuss it in detail. It is<br>fficient to note that the principle of apportioning for<br>lationary fluctuations in the final lump sum award for<br>mages has been upheld and applied in numerous cases<br>rtaining to medical negligence. In the United States of<br>merica, most states, as in Ireland and the United Kingdom,<br>quire awards for future medical costs to be reduced to their<br>JUDGMENT<br>esent value so that the damages can be awarded in the form<br>a one-time lump sum. The leading case in the United States,<br>hich acknowledges the impact of inflation while calculating<br>mages for medical negligence was Jones & Laughlin Steel<br>rporation v. Pfeifer5, wherein that court recognized the<br>opriety of taking into account the factors of present value and<br>lation in damage awards. Similarly, in O'Shea v Riverway<br>5 (1983) 462 US 523<br>20 |
|---|
Page 20
| To<br>inj<br>pe<br>In<br>ap<br>In<br>pr<br>ob | wing Co.6, Posner J., acknowledged the problem of personal<br>ury victims being severely undercompensated as a result of<br>rsistently high inflation.<br>Taylor v. O’ Connor7, Lord Reid accepted the importance of<br>portioning for inflation:<br>“It will be observed that I have more than once<br>taken note of present day conditions - in particular<br>rising prices, rising remuneration and high rates of<br>interest. I am well aware that there is a school of<br>thought which holds that the law should refuse to<br>have any regard to inflation but that calculations<br>should be based on stable prices, steady or slowly<br>increasing rates of remuneration and low rates of<br>interest. That must, I think, be based either on an<br>expectation of an early return to a period of stability<br>or on a nostalgic reluctance to recognise change. It<br>appears to me that some people fear that inflation<br>will get worse, some think that it will go on much as<br>at present, some hope that it will be slowed down,<br>but comparatively few believe that a return to the<br>old financial stability is likely in the foreseeable<br>future. To take any account of future inflation will<br>no doubt cause complications and make estimates<br>JUDGMENT<br>even more uncertain. No doubt we should not<br>assume the worst but it would, I think, be quite<br>unrealistic to refuse to take it into account at all.”<br>the same case Lord Morris of Borth-y-Gest also upheld the<br>inciple of taking into account future uncertainties. He<br>served:<br>“It is to be remembered that the sum which is<br>awarded will be a once-for-all or final amount which<br>6 (1982) 677 F.2d 1194, at 1199 (7th Cir)<br>7 [1971] A.C. 115<br>21 |
|---|
Page 21
| M<br>Si<br>th<br>be<br>25<br>Rs<br>in<br>w<br>26<br>co<br>by<br>S. | the widow must deploy so that to the extent<br>reasonably possible she gets the equivalent of what<br>she has lost. A learned judge cannot be expected to<br>prophesy as to future monetary trends or rates of<br>interest but he need not be unmindful of matters<br>which are common knowledge, such as the<br>uncertainties as to future rates of interest and<br>future levels of taxation. Taking a reasonable and<br>realistic and common-sense view of all aspects of<br>the matter he must try to fix a figure which is<br>neither unfair to the recipient nor to the one who<br>has to pay. A learned judge might well take the<br>view that a recipient would be ill-advised if he<br>entirely ignored all inflationary trends and if he<br>applied the entire sum awarded to him in the<br>purchase of an annuity which over a period of years<br>would give him a fixed and predetermined sum<br>without any provision which protected him against<br>inflationary trends if they developed.”<br>ore recently the Judicial Committee of the UK Privy Council in<br>mon v. Helmot8 has unequivocally acknowledged the principle,<br>at the lump sum awarded in medical negligence cases should<br>adjusted so as to reflect the predicted rate of inflation.<br>. Accordingly, we direct that the said amount i.e.<br>JUDGMENT<br>.1,38,00,000/- shall be paid, in the form of a Fixed Deposit,<br>the name of Sharanya. We are informed that the said amount<br>ould yield an approximate annual interest of Rs. 12,00,000/-.<br>. We find from the impugned order of the NCDRC that the<br>mpensation awarded by that Forum is directed to be paid only<br>Respondent Nos. 1 and 3 i.e. the State of Tamil Nadu and Dr.<br>Gopaul, Neo-pediatrician, Government Hospital for Women &<br>8 [2012] UKPC 5<br>22 |
|---|
Page 22
| Ch<br>th<br>Du<br>W<br>Sh<br>ap<br>27<br>th<br>In<br>ca<br>of<br>th<br>m<br>ot<br>ab<br>es<br>De | ildren, Egmore, Chennai. No reason has been assigned by<br>e Forum for relieving Respondent Nos.2 and 4. Dr.<br>raiswami, Neo Natology Unit, Government Hospital for<br>omen & Children, Egmore, Chennai, who also treated<br>aranya during the course of his visits to the house of the<br>pellant.<br>. It is settled law that the hospital is vicariously liable for<br>e acts of its doctors vide Savita Garg vs. National Heart<br>stitute, (2004) 8 SCC 56, also followed in Balram Prasad’s<br>se (supra). Similarly in Achutrao Haribhau Khodwa v. State<br>Maharashtra, (1996) 2 SCC 634 this court unequivocally held<br>at the state would be vicariously liable for the damages which<br>ay become payable on account of negligence of its doctors or<br>her employees. By the same measure, it is not possible to<br>solve Respondent No. 1, the State of Tamil Nadu, which<br>JUDGMENT<br>tablishes and administers such hospitals through its<br>partment of Health, from its liability.<br>23 |
|---|
Page 23
| A<br>28<br>ap<br>re<br>a)<br>1<br>th<br>Eg<br>b)<br>an<br>pe<br>Eg<br>Dr<br>W<br>Th<br>by<br>th<br>in<br>29<br>lie<br>fo | pportionment of Liability<br>. In the circumstances, we consider it appropriate to<br>portion the liability of Rs. 1,38,00,000/- among the<br>spondents, as follows:<br>Rs. 1,30,00,000/- shall be paid by Respondent Nos.<br>and 2 jointly and severally i.e. The State of Tamil Nadu and<br>e Director, Government Hospital for Women & Children,<br>more, Chennai; and<br>Rs. 8,00,000/- shall be paid by Respondent Nos. 3<br>d 4 equally i.e. Rs. 4,00,000/- by Dr. S. Gopaul, Neo-<br>diatrician, Government Hospital for Women & Children,<br>more, Chennai and Rs. 4,00,000/- by respondent no. 4 i.e.<br>. Duraisamy, Neo Natology Unit, Government Hospital for<br>omen & Children, Egmore, Chennai.<br>e above mentioned amount of Rs. 1,38,00,000/- shall be paid<br>JUDGMENT<br>Respondent Nos. 1 to 4 within three months from the date of<br>is Judgment otherwise the said sum would attract a penal<br>terest at the rate of 18% p.a.<br>. Further, we direct that the amount of Rs. 42,87,921/- in<br>u of past medical expenses, shall be apportioned in the<br>llowing manner:<br>24 |
|---|
Page 24
| a)<br>Rs<br>da<br>b)<br>Rs<br>p.<br>30<br>an<br>sa<br>3<br>th<br>d<br>NE<br>JU | Respondent Nos. 1 and 2 are directed to pay<br>. 40,00,000/- jointly, alongwith interest @ 6% p.a. from the<br>te of filing before the NCDRC; and<br>Respondent Nos. 3 and 4 are directed to pay<br>. 2,87,921/- in equal proportion, alongwith interest @ 6%<br>a. from the date of filing before the NCDRC.<br>. In the event the Respondent Nos. 1 and 3 have made<br>y payment in accordance with the award of the NCDRC, the<br>me may be adjusted.<br>1. Accordingly, Civil Appeal No. 8065 of 2009 is allowed in<br>e above terms and Civil Appeal No. 5402 of 2010 is<br>ismissed. No costs.<br>..………………………….…..........…..J.<br>[JAGDISH SINGH KHEHAR]<br>JUDGMENT<br>…...................................………J.<br>[S.A. BOBDE]<br>W DELHI,<br>LY 1, 2015<br>25 |
|---|
Page 25