Kerala HC sets aside compensation order in Mangalore air crash

25 Aug 2011

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Kochi: The Kerala High Court on Thursday set aside a single judge order directing Air India to pay a minimum compensation of Rs75 lakh to each of the victims of the Mangalore air crash last year. The order will come as a great setback to the relatives of the 158 people killed.

A division bench of justices CN Ramachandran Nair and PS Gopinathan held that Air India was liable to pay only actual damages proved by the claimants in case of death and the victims in case of injury.

The bench said liability may be determined through negotiated settlement or by civil court of competitive jurisdiction. In issuing the order the bench allowed an appeal filed by Air India.

The bench said Air India should offer a "reasonable minimum", even if the actual damages payable in law is low, so that unnecessary litigation can be avoided.

If no settlement is possible, actual damages can be determined by the civil court.

The bench directed the airline to pay compensation reasonably estimated by the attorneys irrespective of whether there is settlement or not.

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