A Division Bench of the Kerala High Court, on Thursday, set aside a single judge's verdict holding that Air India Ltd. was bound to pay a minimum compensation of one lakh Special Drawing Rights (SDRs), equivalent to Rs.75 lakh, each to the legal heirs of those killed in the Mangalore air crash on May 22, 2010.

(The SDRs are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund.)

The Bench, comprising Justice C.N. Ramachandran Nair and Justice P.S. Gopinathan, while setting aside the judgment, observed that the third schedule to the Carriage by Air Act, 1972, incorporating the Montreal Convention, did not provide for any minimum compensation for death of, or injury to, an air passenger.

The court, however, observed that the carrier was liable to pay the actual damages proved by the claimants in the case of death or injuries. The liability so payable could be determined through negotiated settlements or in a civil court of competent jurisdiction.