Where:
(a) damages against the Commonwealth have been awarded:
(i) to a member of the Forces or a member of a Peacekeeping Force in proceedings instituted to recover damages in respect of the incapacity of the member from an injury suffered by, or a disease contracted by, the member; or
(ii) to a dependant of a deceased member of the Forces or a member of a Peacekeeping Force in proceedings instituted to recover damages in respect of the death of the member; and
(b) pension under this Part is payable, or has been paid, to the member in respect of the same incapacity of the member from that or any other injury or disease or to the dependant in respect of the death of the member;
the liability of the Commonwealth to pay those damages, or such part of them as does not represent expenses incurred in medical or hospital treatment, shall be deemed to have been discharged to the extent of the aggregate of the amounts of that pension that have been paid to the member or the dependant, as the case may be.