Gujarat High Court
Mahendra Ranchodbhai Nanda vs Kishorbhai Vanilal Trivedi on 7 August, 2025
NEUTRAL CITATION
C/FA/1011/2014 JUDGMENT DATED: 07/08/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1011 of 2014
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE D. M. VYAS
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Approved for Reporting Yes No
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MAHENDRA RANCHODBHAI NANDA
Versus
KISHORBHAI VANILAL TRIVEDI & ANR.
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Appearance:
MR PREMAL S RACHH(3297) for the Appellant(s) No. 1
MR GC MAZMUDAR(1193) for the Defendant(s) No. 2
MR HG MAZMUDAR(1194) for the Defendant(s) No. 2
UNSERVED EXPIRED (R) for the Defendant(s) No. 1
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CORAM:HONOURABLE MR.JUSTICE D. M. VYAS
Date : 07/08/2025
ORAL JUDGMENT
1. The present appeal is filed by the original claimants under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as the "Act, 1988") being aggrieved and dissatisfied with the impugned judgment and award dated 20/12/2013 passed by the Motor Accident Claims Tribunal (Auxi.) and 4th Additional District Judge, Jamnagar in MACP No.435 of 2008.
2. Short facts of the claim case are stated as under:
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2.2. Legal heirs of deceased Mahendrabhai Nanda filed the claim petition under the provision of Section 166 of the Motor Vehicles Act, 1988, claiming compensation of Rs.10/- lakhs.
2.3. Vide the aforesaid impugned judgment and award, the Tribunal has partly allowed the claim petition preferred by the present appellant-original claimant holding the present appellant-original claimant is entitled to an amount of Rs.3,64,013/- with interest at the rate of 7.5% per annum from the date of filing of such claim petition till its actual realization with proportionate costs. Aggrieved by the same, the appellant-original claimant has filed the present appeal seeking enhancement of compensation.
3. This Court vide order dated 10/10/2014, noticing the submissions made by the learned advocate for the appellant-
original claimant and the grounds raised in the present appeal, has admitted the appeal.
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4. Learned counsel for the appellant-original claimant has submitted that the Tribunal has committed an error in awarding inadequate compensation to the claimant and has failed to appreciate the evidence on record in its true perspective. It is also submitted that the Tribunal has not properly assessed the income of the deceased and has overlooked the settled principles of law laid down by the Hon'ble Supreme Court in relation to the assessment of conventional heads such as loss of estate and funeral expenses. It is further submitted that the Tribunal has awarded a meager and unrealistic amount under various heads without considering the financial dependency of the family members and the socio-economic background of the deceased. The learned counsel has urged that the compensation awarded is not just, fair, and reasonable, and is liable to be enhanced in accordance with the settled legal principles.
4.1. Learned advocate appearing on behalf of the appellant has assailed the impugned judgment and award passed by the Tribunal and submitted that the Tribunal has wrongly considered income of the deceased as Rs.3,000/- per month only without appreciating the evidence produced on record. As per say of learned advocate for the appellant-claimant, yearly income of the deceased was about Rs.2,00,000/- as he was proprietor of 'Nanda Traders' and doing wholesale business of pan and supari and for proving the same income tax return at Exh.67-A is produced on record. Learned advocate has submitted that the tribunal has also erred in Page 3 of 8 Uploaded by PATEL ILA KANTIBHAI(HC00194) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:10:05 IST 2025 NEUTRAL CITATION C/FA/1011/2014 JUDGMENT DATED: 07/08/2025 undefined considering the multiplier. Learned advocate has submitted that the amount awarded under various conventional heads are also on the lower side. Learned advocate has invited the attention of the Court to the findings and reasons assigned by the Tribunal on the aforesaid issue. He has submitted that considering the ratio laid down by the Hon'ble Supreme Court in the case of National Insurance Company Ltd Vs. Pranay Sethi, reported in AIR 2017 SC 5157, future prospective rise is also required to be taken into consideration. Learned advocate has submitted that the amount awarded under the conventional heads, more particularly, towards funeral expenses and loss of estate, is also required to be enhanced to Rs.18,150/- respectively, in view of the decision of the Hon'ble Supreme Court in the case of Pranay Sethi (supra). By making the aforesaid submissions, learned advocate has urged this Court to enhance the amount of compensation accordingly which may be awarded with interest at the rate of 9% per annum from the date of filing of claim petition till its actual realization.
5. Learned advocate appearing for the respondent- Insurance Company has placed reliance upon the findings and reasons assigned by the Tribunal and vehemently argued that the compensation must be awarded as just, proper and reasonable and further submitted that learned Tribunal, after appreciating the materials available on record, awarded the compensation under each head which is just, proper and reasonable and not required to be interfered in this appeal and lastly prayed to dismiss the appeal.
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6. Heard learned advocates for the respective parties on the disputes between the parties in narrow compass and perused the record and proceedings and impugned judgment and award, more particularly, the findings and reasons assigned by the Tribunal while considering the issue of quantum of compensation.
7. As regards the submissions made by the learned advocate for the appellant on the assessment of the income of the deceased is concerned, the Tribunal committed error in assessing the income of the deceased to the extent of Rs.3,000/- per month only. The claimant has produced income tax returns of financial year 2005-2006, 2006-2007 and 2007- 2008 at Exh.67-A. According to the same, average income of the deceased is required to be considered as Rs.1,02,512/- per year.
8. As regards the future prospect is concerned, in view of the judgment of the Hon'ble Supreme Court in the case of Pranay Sethi (supra) noticing the age of the deceased of 60 years at the time of the accident and noticing the fact that deceased was doing business and earning person, 10% amount of the considered income can be considered towards the future prospective rise of income of the deceased. As rightly recorded by the Tribunal, 1/3rd deduction has been applied towards spend by the deceased himself. Noticing the fact that the deceased was aged 60 years at the time of accident, in light of the decision of the Hon'ble Supreme Page 5 of 8 Uploaded by PATEL ILA KANTIBHAI(HC00194) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:10:05 IST 2025 NEUTRAL CITATION C/FA/1011/2014 JUDGMENT DATED: 07/08/2025 undefined Court in the case of Sarla Verma and ors. vs. Delhi Transport Corporation and Anr. reported in (2009) 6 SCC 121 and the schedule prescribed, multiplier of 9 would be appropriate. Lastly, the amount to be awarded under the conventional heads, more particularly, funeral and transport expenses and the loss of estate is also required to be reconsidered in view of the decision of the Hon'ble Supreme Court in the case of Pranay Sethi (supra). The same is to be considered as Rs.18,150/- respectively.
9. Therefore, original claimants - appellants herein are entitled to enhanced amount as computed hereunder:
Compensation As per award under As awarded by this challenge (Rs.) Court (Rs.) Income at the time Rs.3,000/- per Rs.1,02,512/- per of the accident. month year on the basis of Income Tax Returns of the year 2005-
2006, 2006-2007
and 2007-2008)
Prospective income - Rs.1,02,512/- x 10%
= Rs.10,251/-
Deduction of 1/3 1/3
personal expenses
Multiplier 8 9
Total dependency Rs.3,000/- x 12 x 8 Rs.1,12,763/- x 9 x
loss x 2/3rd = 2/3rd =
Rs.1,92,000/- Rs.6,76,578/-
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NEUTRAL CITATION
C/FA/1011/2014 JUDGMENT DATED: 07/08/2025
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Funeral and Rs.5,000/- Rs,18,150/-
transportation
expenses
Loss of estate - Rs.18,150/-
Medical expenses Rs.1,62,013/- Rs.1,62,013/-
Total Compensation Rs.3,64,013/- Rs.9,23,291/-
Enhanced - Rs.9,23,291/- -
compensation Rs.3,64,013/-
=Rs.5,10,878/-
Rate of interest 7.5% 7.5%
10. For the foregoing reasons, the impugned judgment and award dated 20/12/2013 passed by the Motor Accident Claims Tribunal (Auxi.) and 4th Additional District Judge, Jamnagar in MACP No.435 of 2008 is hereby modified. The appellant-
original claimant is held entitled to total compensation of an amount of Rs.9,23,291/-. Since by impugned judgment and award the Tribunal has awarded an amount of Rs.3,64,013/-, the appellant shall be entitled to enhanced amount of compensation to the tune of Rs.5,10,878/- (Rs.9,23,291/- - Rs.3,64,013/-) with interest at the rate of 7.5% from the date of filing of claim petition till its actual realization. The respondents-original opponents are held liable to pay such enhanced amount of compensation as per the award of the tribunal.
11. Let, the aforesaid amount be deposited with the concerned Tribunal within a period of 8 weeks from the date of receipt of the present order. On deposit of the aforesaid Page 7 of 8 Uploaded by PATEL ILA KANTIBHAI(HC00194) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:10:05 IST 2025 NEUTRAL CITATION C/FA/1011/2014 JUDGMENT DATED: 07/08/2025 undefined amount, the Tribunal shall be at liberty to release and disburse the entire award amount in favour of the original claimant, after due verification as per the original judgment and award.
12. Let, such exercise be undertaken by the Tribunal strictly in accordance with the guidelines prescribed by the Hon'ble Supreme Court in this regard; preferably within a period of two weeks from deposit of such amount. The Tribunal is directed to realize the deficit Court fees before proceeding with the disbursement of the amount.
13. Record and proceedings be sent back to the concerned tribunal forthwith, if received.
(D. M. VYAS, J) ILA Page 8 of 8 Uploaded by PATEL ILA KANTIBHAI(HC00194) on Mon Aug 11 2025 Downloaded on : Mon Aug 11 22:10:05 IST 2025