Gujarat High Court
The New India Assurance Company Limited vs Alibhai Hashambhai Sumara on 10 September, 2025
NEUTRAL CITATION
C/FA/249/2022 JUDGMENT DATED: 10/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 249 of 2022
FOR APPROVAL AND SIGNATURE:
HONOURABLE MS. JUSTICE NISHA M. THAKORE
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Approved for Reporting Yes No
No
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THE NEW INDIA ASSURANCE COMPANY LIMITED
Versus
ALIBHAI HASHAMBHAI SUMARA & ORS.
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Appearance:
MS E.SHAILAJA(2671) for the Appellant(s) No. 1
NISHIT A BHALODI(9597) for the Defendant(s) No. 1,2,3,4
RULE SERVED for the Defendant(s) No. 6
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CORAM:HONOURABLE MS. JUSTICE NISHA M. THAKORE
Date : 10/09/2025
ORAL JUDGMENT
[1.] Heard Ms. E. Shailaja, learned advocate on record for the appellant-Insurance Company. Learned advocate Mr. Nishit Bhalodi has entered appearance on behalf of respondent nos.1 to 4-original claimants.
[2.] The notice of admission of appeal is reported to have been duly served upon respondent no.6; however, no appearance has Page 1 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined been entered. From the record, it transpires that before the Tribunal, the original opponent no.5-respondent no.5 herein being the driver of the offending vehicle, has not been served, and the proceedings have been conducted in his absence.
[3.] Considering the issue involved, the Co-ordinate Bench, vide order dated 07.04.2022, had admitted the appeal, and pending the appeal, the operation, implementation and execution of the impugned judgment and award, were stayed, on condition that the appellant-Insurance Company shall deposit the entire award amount with proportionate costs and interest with the concerned Tribunal, before the returnable date. It further transpires from the record that on 04.07.2022, noticing the fact that the entire award amount has been deposited, the Co-ordinate Bench has confirmed the aforesaid interim relief, pending the appeal, with further directions of release and disbursement of part of the amount. The 30% of the deposited award amount was directed to be released in favour of the original claimants, and 70% of the deposited award amount was directed to be invested in the Fixed Deposit Scheme of any Nationalized Bank in the name of the original claimants initially for a period of three years, which was directed to be renewed from time to time. The interest, which was to be accumulated on such FDRs, was directed to be Page 2 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined accumulated in the aforesaid account.
[4.] With the assistance of learned advocates on record for the respective parties, the appeal was heard finally. [5.] The present appeal is filed under Section 173 of the Motor Vehicles Act, 1988 (for short, "the Act") at the instance of the appellant-Insurance Company, being aggrieved and dissatisfied with the judgment and award dated 23.09.2019 passed by the learned Motor Accident Claims Tribunal (Main), Kachchh at Bhuj in M.A.C.P. No.233 of 2016. By the said impugned judgment and award, the Tribunal has partly allowed the claim petition preferred by the present respondent nos.1 to 4-original claimants under Section 166 of the Act, 1988, thereby holding them entitled to recover an amount of compensation of Rs. 26,40,400/- from the original opponents jointly and severally with interest at the rate of 9% per annum from the date of filing of the claim petition till its actual realization as well as with proportionate costs thereof.
[6.] Learned advocate on record for the appellant-Insurance Company has assailed the impugned judgment and award solely on the issue of quantum of compensation being awarded on higher side.
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The bone of contention of learned advocate for the appellant- Insurance Company is that, the Tribunal committed grave error in considering the Income Certificate produced on record at Exh.23, as proof of the income of the deceased, though been corroborated through the evidence of the Contractor, who has been examined as witness by the claimants at Exh.22.
[6.1] Learned advocate for the appellant-Insurance Company has submitted that on close examination of the evidence of said witness, it does not inspire confidence. It was pointed out that bare appreciation of the contents of the Income Certificate at Exh.23, indicates that no license has been issued by the Government, which permits him to carry work as labour contractor. It was further submitted that the genuineness of such Income Certificate has been challenged by the Insurance Company, as evident from the cross- examination of the said witness. In absence of any corroborative evidence, in the nature of books of accounts, vouchers of payment, as claimed by the said witness, the Tribunal ought not to have considered such evidence, to be the proof of income of the deceased. [6.2] Learned advocate has further submitted that considering the fact that the deceased was a skilled labourer engaged in doing Page 4 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined masonry work, in absence of any proof of income being produced on record, the Tribunal at the most could have considered the prescribed rates notified by the State Government under the Minimum Wages Act, as prevalent during the time of the accident, to be the basis for the purpose of determining the income of the deceased. [6.3] Learned advocate has referred to and relied upon the Notification issued by the State Government in this regard, and has submitted that at the most, the income of the deceased could have been considered as Rs.7,000/- per month. Considering the age of the deceased and the principles laid down by the Hon'ble Supreme Court in the case of National Insurance Company Ltd. vs. Pranay Sethi and Others reported in (2017) 16 SCC 680, the Tribunal has rightly considered addition of income as 40%. She has, therefore, submitted that at the most, the prospective income of the deceased could have been considered as Rs.9,800/- per month and applying the deduction of 1/4th i.e. Rs.2,450/- towards personal and living expenses of the deceased, the dependency loss ought to have been considered on the basis of income of Rs.7,350/- per month. Learned advocate has not disputed the multiplier of 17 being applied in the facts of the case. She has, therefore, urged this Court to consider the dependency loss to the tune of Rs.14,99,400/- instead of Rs.25,70,400/-, as determined Page 5 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined by the Tribunal by the impugned judgment and award. [6.4] In support of her submissions, learned advocate has placed reliance upon the decision of the Hon'ble Supreme Court in the case of Sarla Verma & Ors vs Delhi Transport Corp.& Anr reported in (2009) 2 ACJ 1298 and the Constitutional Bench's decision in the case of Pranay Sethi (supra). Referring to the relevant observations with regard to the prospective income to be considered in case of fatal accident, learned advocate has submitted that it would be the actual income of the deceased, which is required to be considered for the purpose of determining the loss of dependency. She has, therefore, urged this Court to modify the impugned judgment and award by re- considering the amount of compensation awarded under the head of loss of dependency.
[7.] Per contra, Mr. Nishit Bhalodi, learned advocate on record for the respondent nos.1 to 4-original claimants has forcefully submitted that no error can be found with the approach of the Tribunal, while determining the income of the deceased. According to learned advocate, the Tribunal, in the facts of the case and the evidence brought on record, has rightly determined the income of the deceased as Rs.12,000/- per month. Learned advocate has placed Page 6 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined heavy reliance upon the findings and reasons assigned by the Tribunal, and has submitted that the Tribunal, in right perspective, has evaluated the evidence of the witness i.e. Contractor, who has been examined by the claimants at Exh.22. On close inspection of the evidence of the aforesaid witness, the Tribunal, being satisfied, has accepted the certificate issued by the said Contractor, to be a genuine document, and has been admitted as an evidence being marked as Exh.23.
[7.1] Learned advocate has further emphasized on the fact that looking to the nature of work with which, the deceased was engaged, the Tribunal has reason to believe the case of the claimants that the Contractor was paying Rs.500/- per day, and has therefore, rightly arrived at a conclusion by determining the income of the deceased as Rs.12,000/- per month. In support of his submissions, learned advocate has placed reliance upon the various decisions of the Hon'ble Supreme Court as well as of this Court, which are as under:
1. In the case of Mohammed Siddique & Another v/s National Insurance Company Ltd. & Others reported in 2020 ACJ 751 (Paras: 15,16, 17 and 18);
2. In the case of Param Pal Sharda and Others v.
Dhani Ram and Others reported in 2022 ACJ 2719 Page 7 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined (Paras:6, 7, 8, 9 and 10);
3. In the case of Lakshmana Gowda B.N. v. Oriental Insurance Co. Ltd. and another reported in 2023 ACJ 1481 (Paras: 9 and 10);
4. In the case of Parminder Singh vs New India Assurance Company Ltd. and others reported in 2019 ACJ 2401 (Para-5); and
5. In the case of Bhanuben Lalji Gorasiya W/O Late Lalji Nanji Gorasiya vs. Sabir Bhachu Hajam delivered in R/First Appeal No.4649 of 2019 on 20.10.2021.
[7.2] Referring to the decision in the case of Mohammed Siddique (supra), learned advocate has submitted that the Hon'ble Supreme Court, while considering the appeal of the original claimant, had noted that the High Court unfortunately committed error in insisting for production of salary vouchers and other records including income tax returns to substantiate the nature of the employment and the monthly income of the deceased. The Hon'ble Supreme Court held that the High Court committed error by applying yardstick of minimum wages on ground of absence of other records, despite the Page 8 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined salary certificate and the oral testimony of the employer being on record. He has, therefore, submitted that the Tribunal has rightly considered the Income Certificate produced and oral testimony of the Contractor, which has remained unshaken, to be the proof of income of the deceased.
[7.3] Referring to the decision of the Hon'ble Supreme Court in the case of Param Pal Sharda (supra), learned advocate has submitted that the Hon'ble Surpeme Court had arrived at a conclusion that Salary Certificate being duly proved, the Tribunal and the High Court have committed error in not giving due weightage to the same for the purpose of determining the income of the deceased. [7.4] Referring to the decision of the Hon'ble Supreme Court in the case of Lakshmana Gowda (supra), learned advocate has pointed out that while considering the issue of the income of the deceased, who was otherwise working as a Marketing Executive in a private company and the Tribunal and the High Court having construed his salary at the rate of Rs.3,000/- per month, observed that even the earning of the person doing masonry work was not less than Rs.300/- per day or in other words Rs.9,000/- per month during the year 2007, and has accordingly, considered the income of the claimant, who was Page 9 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined graduate as Rs.8,000/ per month instead of Rs.3,000/-. [7.5] Referring to the decision of the Hon'ble Supreme Court in the case of Parminder Singh (supra), learned advocate has highlighted the fact that solely on the basis of the affidavit of the employer which was for the first time placed on record before the Hon'ble Supreme Court, the earning of the appellant was believed to be Rs.10,000/- per month at the time of the accident, and was accordingly awarded loss of future earning.
[7.6.] Referring to the aforesaid decisions, learned advocate has submitted that it is well settled principles of law that once the Salary Certificate has been believed by the Tribunal and the Tribunal having occasion to witness the demeanor of the employer, this Court in appeal, in absence of any rebuttal of evidence being brought on record by the Insurance Company, may not interfere with the aforesaid findings and reasons assigned by the Tribunal, while determining the income of the deceased. In the present case, the respondents- original claimants having successfully established their case through the oral testimony of the Contractor and the Income Certificate being duly proved before the Tribunal, in absence of any rebuttal of the aforesaid evidence, the present appeal may not be Page 10 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined entertained. Learned advocate has, therefore, submitted that considering the case of persons belonging to casual labour work, the Court may not insist for further corroborative material, as their case cannot be compared with government employees/or employees in corporate houses, where further evidence in the nature of salary slip and bank statement are generally expected. He has, therefore, urged this Court to consider the aforesaid aspect while considering the issue raised by the present appellant-Insurance Company. [7.7] Lastly, learned advocate has invited my attention to the amount of compensation being awarded under the head of loss of consortium. The attention of this Court was invited to the fact that indisputably, the impugned judgment and award was pronounced in the year-2019, whereas the Constitutional Bench of the Hon'ble Supreme Court in the case of Pranay Sethi (supra), has laid down the principles with regard to the amount of compensation, to be awarded under the head of loss of consortium is concerned. Considering the fact that the claimants includes parents of the deceased, his wife and minor son, the Tribunal was expected to award amount of compensation under the head of loss of consortium to each of the claimants to the tune of Rs.40,000/-, whereas, the Tribunal has confined to the extent of Rs.40,000/- only. He has, therefore, urged this Court to invoke the powers conferred under Order XLI Rule 33 of Page 11 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined the Code of Civil Procedure, 1908, while considering the impugned judgment and award as assailed in the present appeal, even in absence of any appeal or any cross-objection being filed at the instance of the original claimants. He has, therefore, urged this Court to pass appropriate orders in this regard.
[8.] In rejoinder, learned advocate for the appellant-Insurance Company has disputed the judgments relied upon by learned advocate for the claimants, by contending that the ratio laid down in the respective judgments, are in the background of the facts of each of the case. Learned advocate has submitted that the principles laid down by the Hon'ble Supreme Court in the case of Pranay Sethi (supra), which is a Constitutional Bench's judgment, shall govern the legal issue, more particularly, where the concept of actual income has been highlighted.
[8.1] On merits, she has reiterated that on appreciation of the Income Certificate produced on record at Exh.23, in light of the evidence of the witness at Exh.22, the genuineness of the certificate has been successfully challenged by the appellant-Insurance Company. The attention of this Court was also invited to the written submissions tendered by the appellant-Insurance Company before the Tribunal, in Page 12 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined this regard. She has, therefore, urged this Court to allow the appeal and to modify the impugned judgment and award by accepting the case of the appellant-Insurance Company of considering income of the deceased as Rs.7,000/- per month.
[8.2] As regards the submissions made by learned advocate for the respondents-original claimants on the issue of loss of consortium is concerned, learned advocate was unable to dispute the same, in view of the Constitutional Bench's decision of the Hon'ble Supreme Court in the case of Pranay Sethi (supra), and has urged this Court to pass appropriate orders in this regard. [9.] Having considered the arguments of learned advocates on record for the respective parties at length, and upon appreciation of their submissions in light of the findings and reasons assigned by the Tribunal, the only point of determination, which arises for consideration of this Court in the present appeal is, as to whether the Tribunal committed any error in determining the quantum of compensation, in the facts and circumstances of the case and the evidence brought on record?
[10.] Indisputably, there is no challenge on the issue of
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NEUTRAL CITATION
C/FA/249/2022 JUDGMENT DATED: 10/09/2025
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negligency and the liability, as determined by the Tribunal, against the present appellant-Insurance Company, in the present appeal. Thus, the foundational facts with regard to occurrence of the accident, the involvement of the vehicle, the accidental injuries sustained by the deceased because of such accident and the liability of the Insurance Company, have remained uncontroverted, and have attained finality. Before considering the core issue, at the outset, it would be appropriate to remind the scope of jurisdiction of Tribunal under M.V. Act. Section 168 of the Motor Vehicles Act, 1988, empowers the Tribunal to make award determining the amount of compensation that appears it to be 'just' and 'proper', which is held to be adequate compensation i.e. fair and equitable. The Orissa High Court in case of Mulla Md Abdul Wahid Vs. Abdul Rahim and another reported in 1994 ACJ 3481, observed that the expression 'just compensation' would mean what is fair, moderate and reasonable and awardable in the proved circumstances of a particular case and the expression "
which appears to be just" vests a discretion in the Tribunal in the matter of determining compensation. However, that discretion has to be always guided by sound judicial principles. Thus, the Tribunals in terms of the scheme of the Act are under duty to determine 'just' compensation.
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learned advocate for the appellant-Insurance Company with regard to evaluation of the evidence in the nature of oral testimony of the mother of the deceased-original claimant no.1 at Exh.21, the oral testimony of the witness- Contractor examined by the claimant at Exh.22 and the documentary evidence in the nature of Income Certificate of the deceased at Exh.23. On re-appreciation of the aforesaid evidences, in light of the original case pleaded by the claimants in the original claim petition and the FIR produced on record at Exh.24, the Panchnama of occurrence of accident at Exh.25, the electoral card of the deceased produced on record at Exh.31, it transpires that the deceased was native of village- Mota Valaka, Taluka- Nakhatrana, District- Kachchh and the accident had taken place on a Kachha Road going towards Mangvana Math towards Golai Road in Nakhatrana, District- Kachchh. The FIR was registered within the jurisdiction of Nakhatrana Police Station. As against that, the evidence of the witness Contractor, who has been examined at Exh.22 by the claimants, belongs to village- Guneri, Taluka,-Lakhpat, District- Kachchh. The certificate, which is produced on record at Exh.23, indicates that the Contractor is based at village-Guneri, Taluka,- Lakhpat, District- Kachchh. The said witness claims to be engaged in a construction business as a Contractor, and has engaged the deceased Page 15 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined for masonry work and used to pay daily wages of Rs.500/- and accordingly, he has supported the case of the claimants of deceased earning of Rs.15,000/-per month. The said witness in his cross- examination has acknowledged the fact about the certificate produced on record at Exh.23, being signed by him. However, in his cross-examination, the said witness has admitted that he is not holding any Pan Card in the name of the business, which he runs. He has also admitted the fact that in the Income Certificate produced on record, he has not mentioned about the place from which the deceased hails. He has also admitted the fact that there is no further document being brought on record with regard to the payment being made to the deceased. He has also admitted the fact that he has studied up to 7th standard and he is not well verse with the computer. He has also admitted that copy of the Income Certificate has not been retained by him, and no receipt of issuance of certificate has been recovered by him. However, he has denied the fact that such certificate has been got up in order to help the claimants to secure the amount of compensation.
[12.] Considering the overall evidence of the said witness, in light of the certificate produced on record at Exh.23, in the opinion of this Court, the appellant-Insurance Company has successfully Page 16 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined challenged the genuineness of issuance of such certificate, more particularly, considering the fact that the deceased belongs from a different village of a different Taluka, the very fact that the said witness was not holding any Pan Card in the name of business, which he claims to run and as against that making payment of Rs.15,000/- per month to a labourer engaged in a construction business, the doubt has been raised by the appellant-Insurance Company on the genuineness of such document. In such circumstances, the Tribunal ought to have sought for further corroboration. As rightly contended by learned advocate for the respondents, considering the nature of work of the deceased, who was earning by doing masonry work, it would be difficult to secure documents in the nature of Income Certificate and statement of bank account, as a proof of income. However, having produced such evidence on record, the Courts cannot pretend to be blissfully ignorant of their obligation to evaluate the evidence. Hence, in claim petition filed under Section 166 of the M.V. Act, the Tribunal has a statutory duty to not only evaluate evidence but also to award "just and proper" compensation to the victim of compensation.
[13.] Considering the overall appreciation of the evidence, certainly it cannot be said that the proof of income of the deceased, is Page 17 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined believable for the purpose of determining the loss of dependency. Even appreciation of the evidence of the original claimant no.1- mother of the deceased, who has been examined at Exh.21, as against the original case pleaded in the original claim petition, for the first time, said witness has deposed that the deceased was earning monthly income of Rs.15,000/- as being engaged in masonry work by construction firm owned by a Contractor- Devji K. Khokhara, who has been examined as witness at Exh.22. In his cross-examination, the said witness has denied that it is not correct that the case has been pleaded to secure the amount of compensation. On appreciation of the contents of the original claim petition, while pleading the case about monthly income of the deceased, the aforesaid aspect has not been clarified at the first stage of presenting the claim petition. [14.] Considering the aforesaid circumstances and in light of the evidence as evaluated by this Court, the case of the claimant of deceased earning Rs.15,000/- per month is not believable. In absence of any proof of income being produced on record, this Court is left out to determine the income of the deceased based on the nature of work with which the deceased was associated. Indisputably, the deceased was engaged in masonry work. Considering the principles laid down by the Hon'ble Supreme Court in the case of Govind Yadav vs The New Page 18 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined India Insurance Co.Ltd reported in 2011 (10) SCC 683, in absence of any proof of income being produced on record and considering the nature of work with which the deceased was associated, this Court can certainly consider the yardstick of the standard rates prescribed by the State Government, as notified under the Minimum Wages Act. Considering the date of accident, which had occurred on 13.12.2015 and the minimum wages prevailing between period of 01.10.2015 to 31.03.2016, the minimum wages were Rs.7,886/- per month in case of skilled worker. The Court is, therefore, inclined to consider the income of the deceased as Rs.8,000/- per month.
[15.] Having held so, the loss of dependency is reconsidered, in absence of any further challenge being made to the deduction towards the personal and living expenses of the deceased and the multiplier of 17 is adopted. The deceased was a married person and having four dependents, which includes the aged parents, the widow and the minor son. In such circumstances, considering the principles laid down by the Hon'ble Supreme Court in the case of Pranay Sethi (supra), each of the claimants shall be entitled to the amount of Rs.40,000/- towards the same. Though, no appeal or any cross-
objection has been preferred by the respondents-original claimants, considering the provisions of Order XLI Rule 33 of the Code, 1908, this Page 19 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025 NEUTRAL CITATION C/FA/249/2022 JUDGMENT DATED: 10/09/2025 undefined Court being conferred with the jurisdiction to pass any order, which otherwise the Tribunal ought to have passed, this Court is inclined to reconsider the amount of compensation awarded under the head of loss of consortium. Thus, the present respondent nos.1 to 4-original claimants are held entitled to Rs.40,000/- each under the head of loss of consortium, and accordingly, the loss of consortium is enhanced from Rs.40,000/- to Rs.1,60,000/-. In absence of any dispute being raised with regard to amount of compensation being awarded under the head of loss of estate and funeral expenses are concerned, the same are hereby confirmed. The revised calculation of amount of compensation is reproduced in tabular form hereunder:
Under the Head of Compensation of Rs.
Future loss of income 17,13,600/-
Monthly income = Rs.8,000/-
Prospective income 40%%
(Rs.8,000/- + 40%) = Rs.11,200/-
Deduction 1/4
(Rs.11,200/4 = Rs.2800/-)
Total Income
(Rs.8400x12x17)
Loss of Estate 15,000/-
Loss of Funeral Expenses 15,000/-
Loss of Consortium 1,60,000/-
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(40,000x 4)
Total 19,03,600
Award from Tribunal Rs.26,40,400/-
Difference 7,36,800/-
(Rs.26,40,400 - Rs.19,03,600/-)
[16.] For the foregoing reasons, the present First Appeal is
partly allowed. The impugned judgment and award dated 23.09.2019 passed by the learned Motor Accident Claims Tribunal (Main), Kachchh at Bhuj in M.A.C.P. No.233 of 2016, is hereby modified. Since the total amount of compensation originally awarded by the Tribunal was to the tune of Rs.26,40,400/-, and in view of the order dated 04.07.2022 passed by the Co-ordinate Bench in Civil Application for stay preferred by the appellant-Insurance Company, 30% of the award amount being realized and 70% of the award amount being lying in the Fixed Deposit with interest, the difference of the amount of Rs. 7,36,800/- with accrued interest, is directed to be refunded by the Tribunal through NEFT/RTGS in the name of the appellant-Insurance Company. The remaining amount with accrued interest is directed to be released and disbursed in favour of the original claimants, subject to due verification, strictly in accordance with the guidelines issued by the Hon'ble Supreme Court in this regard. Let the aforesaid exercise be undertaken by the Tribunal within a period of two weeks from the date of receipt of this order.
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Proceedings along with the writ of this judgment to the concerned Tribunal forthwith.
(NISHA M. THAKORE,J) SUYASH SRIVASTAVA/SFS/11/09 Page 22 of 22 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Sep 15 2025 Downloaded on : Mon Sep 15 22:29:32 IST 2025