Gujarat High Court
Bajaj Alliance General Insurance ... vs Mafabhai Ajubhai Bharwad on 13 November, 2025
NEUTRAL CITATION
C/FA/1175/2013 JUDGMENT DATED: 13/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1175 of 2013
With
R/CROSS OBJECTION NO. 141 of 2013
In
R/FIRST APPEAL NO. 1175 of 2013
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE MOOL CHAND TYAGI
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Approved for Reporting Yes No
✔
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BAJAJ ALLIANCE GENERAL INSURANCE COMPANY LIMITED
THROUGH
Versus
MAFABHAI AJUBHAI BHARWAD & ORS.
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Appearance:
MASUMI V NANAVATY(9321) for the Appellant(s) No. 1
MR VIBHUTI NANAVATI(513) for the Appellant(s) No. 1
MR HEMANT S SHAH(756) for the Defendant(s) No. 1,2
RULE SERVED for the Defendant(s) No. 3,4
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CORAM:HONOURABLE MR.JUSTICE MOOL CHAND TYAGI
Date : 13/11/2025
ORAL JUDGMENT
1. The captioned appeal is filed by the Insurance Company against the impugned judgment and award dated 19.12.2012 passed by the learned Tribunal (Auxi) Court No.16, City Civil & Sessions Court, Ahmedabad in Motor Accident Claim Petition No.85 of 2006, whereby the learned Tribunal has awarded a sum Page 1 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined of Rs.2,62,500/- as a compensation along with the interest at the rate of 7.5% per annum from the date of filing of the claim petition till realization.
2. Upon being served with the notices of the appeal, the respondents/original claimants preferred the captioned Cross- objection in the captioned appeal and thereby prayed for enhancement of compensation.
3. The succinct facts leading to file the present appeal and Cross-objection are as under:-
3.1 The claim petition has been preferred under Section 163-A of the M. V. Act 1988 for seeking compensation on account of the death of Somabhai Mafabhai Bharwad, the son of the original claimants in vehicular accident. On 14.04.2006 at around 1.00 a.m, the son of the original claimants was going as pedestrian on road towards his house on 132 ft. Ring Road and when he reached near Shaktinagar Chhapra, opposite Gokuldham Society, in the meantime, one Maruti Car bearing registration No.GJ-1-HK-3809 came in full speed from the RTO side and hit said Somabhai Mafabhai Bharwad and due to the Page 2 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined accident said Somabhai Mafabhai Bharwad fallen down on the road and sustained grievous injuries on his head and body and caused severe bleeding. He was taken to the Vadilal Sarabhai Hospital for the treatment but during the treatment he succumbed to the injuries. It is also the case of the claimants/respondents in the appeal that at the time of accident, the deceased was aged about the 24 years and he was gainfully earning by doing the business of glass polishing and designing.
4. Upon being served with the notices of the claim petition, the Insurance Company-appellant herein filed the written statement at Exh-24 and thereby denying all the averments made in the petition and prayed for dismissal.
5. Having considered the pleadings of the parties, the learned Tribunal has framed the issues at Exh-38/A which are as under:-
"1. Whether the applicants prove that the deceased died due to the injuries sustained in the accident caused by rash and negligent driving of driver of vehicle involved in the accident?
2. Whether applicants are entitled to get compensation? If yes, what amount and from whom?
3. What award?"Page 3 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025
NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined
6. Having considered the materials on record, the learned Tribunal had partly allowed the claim petition and awarded a sum of Rs.2,62,500/- as a compensation along with the interest at the rate of 7.5% per annum from the date of filing of the claim petition till its realization.
7. Being aggrieved and dissatisfied with the award, the Insurance Company has filed the captioned appeal and the original claimants have filed the captioned Cross-objection for enhancement.
8. Heard learned advocates for the parties.
9. Learned advocate for the appellant submitted that the learned Tribunal has awarded the compensation at a higher side, therefore, the award is required to be modified.
10. On the other hand, learned advocate for the original claimants/objectors submitted that the learned Tribunal has awarded the compensation at lower side. He further submitted that the learned Tribunal has considered the income of the deceased at lower side which is lower than the minimum wages Page 4 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined prevalent at the time of accident. He further submitted that the learned Tribunal has committed error in applying the multiplier in accordance to the age of the parents. He further submitted that it is on record that the deceased was aged about 24 years at the time of accident, therefore, the learned Tribunal ought to have awarded the compensation in accordance to the Second Schedule annexed with Act. In support of his contention learned advocate for the original claimants submitted that the learned Tribunal ought to have considered the ratio of the judgment of the Hon'ble Apex Court rendered in the case of National Insurance Company Limited Vs Gurumalla and another reported in (2009) 16 SCC 43.
11. Having considered the submissions of the learned advocates for the parties, it is to be noted that the learned Tribunal has determined the income of the deceased at Rs.2,500/- and further added 30% on account of future prospective income of the deceased and determined the annual income at Rs.39,000/- and further deducting ½ of the income on account of the personal expenses of the deceased being the bachelor. The learned Tribunal has also applied the multiplier in accordance to the age of the parents and the learned Tribunal Page 5 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined has also awarded a sum of Rs.5,000/- under the head of Loss of Consortium and further a sum of Rs.2,000/- under the head of Loss of Estate and a sum of Rs.2,000/- under the head of funeral expenses. The learned Tribunal has to calculate the amount of compensation in accordance to the ratio of the judgment rendered in the case of Gurumallamma(supra) wherein para-6 to 9 the Apex Court has observed as under:-
"6. The Second Schedule provides for the amount of compensation for third-party fatal accident/injury cases claims. It provides for the age of the victim and also provides for the multiplier for arriving at the amount of compensation which became payable to the heirs and legal representatives of the deceased depending upon his annual income.
7. The Second Schedule furthermore provides that in a case of fatal accident, the amount of claim shall be reduced by one-third in consideration of the expenses which the victim would have incurred upon himself, had he been alive. It provides for the amount of minimum compensation of Rs 50,000. It furthermore provides for payment of general damages as specified in Note 3 thereof.
8. Multiplier stricto sensu is not applicable in the case of fatal accident. The multiplier would be applicable only in case of disability in non-fatal accidents as would appear from Note 5 appended to the Second Schedule. Thus, even if the application of multiplier is ignored in the present case and the income of the deceased is taken to be Rs.3,300/- per month, the amount of compensation payable would be somewhat between Rs.6,84,000/- to Rs.7,60,000/-.
9. As the Second Schedule provides for a structured formula, the question of determination of payment of compensation by application of judicial mind which is otherwise necessary for a proceeding arising out of a claim petition filed under Section 166 would not arise. The Tribunal in a proceeding under Section 163-A of the Act is required to determine the amount Page 6 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined of compensation as specified in the Second Schedule. It is not required to apply the multiplier except in a case of injuries and disabilities."
12. Applying the ratio of the above judgment in the present case and having regard to the year of accident and minimum wages prevalent at the time of accident the annual income of the deceased is determined at Rs.40,000/- per annum. Therefore, as per the Second Schedule the total amount of compensation would come to Rs.7,20,000/-.
13. As per the second schedule 1/3 of the aforesaid amount is to be deducted on account of personal expenses of the deceased, therefore, the amount of loss of dependency would come to Rs.4,80,000/- (Rs.7,20,000/- -(minus) Rs.2,40,000/-). Further a sum of Rs.2,000/- on account of the funeral expenses and a sum of Rs.2,500/- on account of loss of estate is added. Therefore, the claimants shall be entitled for a total compensation of Rs.4,84,500/-. Learned Tribunal has awarded a sum of Rs.2,62,500/- as a compensation, therefore, the original claimants shall be entitled for an additional compensation of Rs.2,22,000/- along with the interest at the rate of 7.5% as awarded by the learned Tribunal from the date of filing of the Page 7 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025 NEUTRAL CITATION C/FA/1175/2013 JUDGMENT DATED: 13/11/2025 undefined claim petition till realization.
14. In view of the above discussions, the appeal preferred by the Insurance Company stands dismissed and the Cross- objection filed by the original claimant stands allowed to the above extent. The Insurance Company shall deposit the additional amount of compensation along with the interest within a period of 4 weeks from today. Upon depositing of the said amount, the learned Tribunal shall disburse the entire amount of compensation to the original claimant after due verification. Statutory amount, if any, lying deposited with the Registry of this Court, be transmitted to the concerned learned Tribunal forthwith.
15. R & P be sent back to the concerned learned Tribunal forthwith.
16. No order as to costs.
17. Stay, if any, stands vacated.
(MOOL CHAND TYAGI, J) CDP Page 8 of 8 Uploaded by MR.CHIRAG DESHRAJ PAL(HCD0072) on Sat Nov 15 2025 Downloaded on : Mon Nov 17 22:21:37 IST 2025