Gujarat High Court
The New India Assurance Company ... vs Bhartiben Bhikhusinh Gohil on 21 October, 2021
Bench: A.G.Uraizee
C/FA/1664/2020 ORDER DATED: 21/10/2021
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1664 of 2020
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THE NEW INDIA ASSURANCE COMPANY LTD.
Versus
BHARTIBEN BHIKHUSINH GOHIL
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Appearance:
MR YOGI K GADHIA(5913) for the Appellant(s) No. 1
for the Defendant(s) No. 2
MR VINOD M GAMARA(5910) for the Defendant(s) No. 3,4
MR. RAHIL P JAIN(7305) for the Defendant(s) No. 1,2
NILESH J GOSAI(7325) for the Defendant(s) No. 3,4
RULE NOT RECD BACK(63) for the Defendant(s) No. 5
RULE SERVED(64) for the Defendant(s) No. 6
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CORAM:HONOURABLE MR. JUSTICE A.G.URAIZEE
Date : 21/10/2021
ORAL ORDER
1. In this appeal under Section 173 of the Motor
Vehicles Act,1988 ('M.V. Act' for short) the appellant-
Insurance Company has assailed the judgment and award
dated 23.08.2018 passed by MACT (Aux.) City Civil Court,
Court No.20, Ahmedabad in MACP No.526/2005.
2. Mr. Yogi K. Gadhia, learned advocate for the
appellant and Mr. Vinod M. Gamara, learned advocate for
the claimant.
3. Mr. Gadhia, learned advocate for the appellant
submits that though the claimant had filed a claim petition
under Section 166 of the M.V. Act, the tribunal has
determined the compensation on the basis of structured
formula as provided under Section 163(A) of M.V. Act. He
submits that schedule-A to Section 162(A) provides for
compensation of Rs.2000/- under the head of funeral
expenses and Rs.2500/- under the head of loss of estate.
However, the tribunal has awarded 15000/- each under
these two heads. He, therefore, submits that the
compensation allowed to the claimant required to be
C/FA/1664/2020 ORDER DATED: 21/10/2021
reduced by Rs.25,500/- by allowing compensation under
the head of funeral expenses and loss of estate at the rate
of Rs.2000/- and Rs.2500/- respectively.
4. Learned advocate for the claimants could not dispute
the proposition submitted by Mr. Gadhia, learned advocate
for the appellant Insurance Company. He submits that
appropriate order may be passed.
5. The perusal of the impugned judgment and award
makes it vividly clear that the tribunal has chosen to
award compensation to the claimants for death of their 17
years old son on the basis of structured formula provided
by schedule (1) to Section 163 (A) of the M.V. Act though
the claim petition was filed under Section 166 of M.V.
Act. It is not in dispute that schedule (A) to Section 166(A)
provides for Rs.2000/- as compensation under the head of
funeral expenses and Rs.2500/- under the head of loss of
estate. However, the tribunal has awarded Rs.15000/- each
under these two heads which cannot be countenanced if
the compensation is to be awarded to the claimants on the
basis of structured formula.
6. In view of the above, compensation awarded by the
tribunal under the head of loss of funeral expenses and
loss of estate needs to be reduced to bring it in sequence
with schedule (A) to Section 163(A). As a consequence,
this Court is of the opinion that the claimants are entitled
to Rs.2000/- and Rs.2500/- for funeral expenses and loss of
estate respectively instead of Rs.15000/- each under the
said heads. According compensation admissible to the
claimants needs to be recalculated as under:-
C/FA/1664/2020 ORDER DATED: 21/10/2021
Sl. No. Descriptions Amt. (In Rs.)
1 Loss of dependency 3,78,000/-
2 Loss of estate 2500/-
3 Funeral expenses 2000/-
Final Amount 3,82,500/-
7. In view of the above, the claimants are entitled to
Rs.3,82,500/- instead of Rs.4,08,000/- as awarded by the
tribunal.
8. In view of the above, the appeal is allowed in part.
The impugned judgment and award is hereby modified and
the claimants are held entitled to Rs.3,82,500/- as
compensation in place of Rs.4,08,000/- awarded by the
tribunal.
8. The tribunal is directed to prematurely on cash the
fixed deposit and refund Rs.25,500/- to the appellant -
Insurance Company with proportionate interest accrued
thereon and reinvest the remaining amount in the fixed
deposit for remainder period in terms of the impugned
judgment. Parties are left to bare their own costs.
(A.G.URAIZEE, J)
Manoj
