The Division Bench of Justice Aniruddha Bose and Justice Vikram Nath of the Apex Court in the case of ITC Limited Vs Aashna Roy held that quantification of compensation has to be based upon material evidence and not on mere asking.
The Apex Court set aside the order of the NCDRC in awarding the compensation of Rs. 2 crores as compensation for loss of income, mental breakdown, and trauma and pain in a case where haircut was not done as per the instructions and awarded for fresh consideration of the matter.
Brief Facts:
The present appeal has been preferred against the order of the National Consumers Disputes Redressal Commission (“NCDRDC”) vide which the Respondent was awarded Rs.2 crore as compensation to be paid by the Appellant for not giving the haircut as instructed by the Respondent.
Brief Background:
The factual matrix of the case was that the Respondent, to take the hair styling service, went to the ITC Maurya's saloon. The Respondent gave certain instructions to the Hairdresser however the Hairdresser completely went against the instructions as provided.
Thereafter, the saloon offered services for hair extension and also free treatment as the Respondent complained to the Manager. When the Respondent again went for the treatment, it turned out to be a fiasco for the Respondent. Her hair was damaged due to the use of the excess spray. The Respondent's expressions of dissatisfaction and irritation were not well received.
After that, left with no other option, the Respondent filed the complaint before the NCDRC seeking compensation of Rs. 3 crores for harassment, humiliation, mental trauma, loss of career, loss of income, and loss of prospects. The NCDRC relied upon the judgment titled Charan Singh vs. Healing Touch Hospital & Ors (2000 7 SCC 668) and awarded the compensation of Rs. 2 crores.
Observations of the Court:
The Court observed that because the finding of a deficiency in service was made after careful consideration of the evidence, it would only be a matter of fact and they would not be inclined to overturn it.
After that, the question of adequate compensation was taken into consideration.
The Bench noted that it would be difficult to quantify or evaluate the compensation in the absence of any information about the current job, the emoluments received any past, present, or future modeling assignments the Respondent was likely to get, or even the interview letter for which the Respondent alleged she went to the saloon to make herself presentable. As regards compensation in the category of pain, suffering, and trauma could be measured, Rs. 2 crores would be wholly inappropriate and outrageous.
It was opined that the compensation has to be assessed on the material presented on record and not on the mere asking.
The Decision of the Court:
The Apex Court set aside the order of the NCDRC in awarding the compensation of Rs. 2 crores as compensation for loss of income, mental breakdown, trauma, pain, and suffering, and directed for fresh consideration of the matter.
Case Title: ITC Limited Vs Aashna Roy
Coram: Hon’ble Mr. Justice Aniruddha Bose and Hon’ble Mr. Justice Vikram Nath
Citation: 2023 Latest Caselaw 81 SC
Case No: Civil Appeal No. 6391 OF 2021
Advocate for the Appellant: Advs. Mr K.V. Viswanathan and Mr Debal Kumar Banerji
Read Judgement @LatestLaws.com
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