Monday, 18, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Chetnaben Maganbhai Vadi ... vs Manohardas Laxminarayan Bairagi
2021 Latest Caselaw 15117 Guj

Citation : 2021 Latest Caselaw 15117 Guj
Judgement Date : 27 September, 2021

Gujarat High Court
Chetnaben Maganbhai Vadi ... vs Manohardas Laxminarayan Bairagi on 27 September, 2021
Bench: A.G.Uraizee
     C/FA/1407/2020                             ORDER DATED: 27/09/2021



           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                   R/FIRST APPEAL NO. 1407 of 2020
================================================================
                 CHETNABEN MAGANBHAI VADI (CHAUHAN)
                              Versus
                  MANOHARDAS LAXMINARAYAN BAIRAGI
================================================================
Appearance:
MR VIJAL P DESAI(5505) for the Appellant(s) No. 1,2
MS ISHITA V DESAI(5975) for the Appellant(s) No. 1
for the Defendant(s) No. 1,2,3
MR RATHIN P RAVAL(5013) for the Defendant(s) No. 4
================================================================
 CORAM:HONOURABLE MR. JUSTICE A.G.URAIZEE

                           Date : 27/09/2021
                            ORAL ORDER

1. Heard Mr. Desai, learned advocate for the appellant and Mr. Ranthil Raval, learned advocate for the respondent No.4-Insurance Company. Presence of other respondents are not necessary for disposal of this appeal.

2. The issue involved in this appeal lies in a narrow campass. The appeal is, therefore, taken up for final disposal at the admission stage with the consent of learned advocates for the contesting parties.

3. This is an appeal under Section 173 of the Motor Vehicles Act, ('M.V. Act' for short) is preferred by the claimants for enhancement of compensation awarded to them by MACT (Main), Dahod in MACP No.337/2008 vide judgment and award dated 3.04.2018.

4. Mr. Desai, learned advocate for the appellant original claimants submits that the tribunal has

C/FA/1407/2020 ORDER DATED: 27/09/2021

adopted incorrect rate of minimum wages prevailing at the time of accident. He submits that the tribunal ought to have considered Rs.2800/- as monthly income of the claimant instead of Rs.1728/- per month as per the prevailing minimum wages at the time of accident for unskilled labourer. He, therefore, urges that the present appeal may be allowed and the compensation available to the appellant claimant may be assessed on the baiss of monthly income at the rate of Rs.2800/-

5. Mr. Ranthil Raval, learned advocate for the Insurance Company has supported the impugned judgment. He stoutly submits that the claimants have not produced any evidence regarding the income of the deceased. In such a scenario, the tribunal has correctly assess the monthly income of the deceased on the basis of prevailing rates of minimum wages for unskilled labourer. He, therefore, urges that the impugned judgment does not call for interference. He submits that in case this Court comes to the conclusion that the claimants are entitled to enhancement in the compensation, the interest may not be awarded on the enhanced compensation for the period of delay.

6. I have considered the rival submissions and have also perused the impugned judgment and award.

7. It emerges from the impugned judgment and award that the tribunal has recorded a finding that the deceased was an unskilled labourer. As the claimants

C/FA/1407/2020 ORDER DATED: 27/09/2021

did not produced any cogent and convincing evidence regarding the monthly income of the deceased, the tribunal had no other alternative to assess his income on the basis of minimum wages prevailing at the relevant time for unskilled labourer.

8. The only question which falls for consideration in this appeal is whether the tribunal has considered the correct minumum wages for unskilled labourer to determine the monthly income of deceased or not.

9. It emerges from the impugned judgment that the tribunal has come to the conclusion that deceased was an unskilled labourer and as there was no convincing and cogent proofe of his income, the monthly income is assessed on the basis of minimum wages prevailing at the relevant time for unskilled labourer. I think that the calculation of the monthly income of the deceased who unskilled labourer on the basis of minimum wages is not correct even Schedule-A to Section 163-A of M.V. Act provides for Rs.15,000/- per annum as nontional monthly income of no earning person. Accordingly, notional monthly income of a non earning person comes to Rs.1250/-. The contention of Mr. Raval, learned advocate that the tribunal has not committed any error in assessing monthlyincome of the deceased cannot be sustained. I am, therefore, of the view that considering the year of accident the tribunal ought to have at least considered Rs.2800/- as the monthly income of the deceased for determining the

C/FA/1407/2020 ORDER DATED: 27/09/2021

compensation available to the claimants.

10. Accordingly, the compensation assessed by the tribunal needs to be reassessed and recalculated as under:-

Awarded by Ld. Tribunal Revised Calculation Proportionate Income Income Rs.2800/-+25%=Rs.3500/- Rs.1728/-+25%(Rs.432)=Rs.2160/- Perspective Income Rs.3500-

Rs.875=Rs.2625/-

Personal Expenses Deducation- Personal Expense Deduction 1/4x13=540/- Rs.2625x12x13=4,09,500/- Rs.2160- +Rs.70,000/-Rs.4,79,500/- Rs.540=1620x12x13=2,52,720/-

Loss of Dependency-Rs.2,52,720/- Enhanced Compensation-

Rs.1,56,780/-

Conventional Amount-Rs.70,000/-

Total-Rs.3,22,720/-

11. The appellant claimants are, therefore, entitled to Rs.4,79,500/- as compensation in place of Rs.3,22,720/-. Accordingly, the claimants are entitled to Rs.1,56,780/- as additional compensation.

12. The submission of Mr. Raval, learned advocate that the interest may not be awarded on the enhanced amount for a period of delay which has occurred in preferring the appeal. It emerges from the record that there was a delay of 431 days in preferring this appeal. While condoning the delay, this Court has vide order dated 12.03.2020 has observed that it would be open for Insurance Company to contest the no financial

C/FA/1407/2020 ORDER DATED: 27/09/2021

liability be fastened on it towards interest for the period which is not attributable to it. I think i must agree with the submission of Mr. Raval, learned advocate there appears to be some endolance on the parts of claimants in preferring the appeal for which the financial liability cannot be mulcted of the Insurance Company. Moreover, in recent times, there is substantial fell in the rate of interest available on the fixed deposit receipts of a nationalized bank.

13. The impugned judgment and award was pronounced by the tribunal on 03.04.2018. The appellants original claimants preferred present appeal in this Court along-with delay condonation application on 13.08.2019. Thus there was a delay of 431 days in preferring the appeal. As noted in the foregoing while condoning the delay, this Court has reserved liberty in favour of the respondent Insurance Company to contest its liability for payment of interest for a period of delay which is not attributable to it. Accordingly, considering the overall facts of the case, I think that enhanced compensation are carry rate of 7% interest and 9% awarded by the tribunal except for a period from 3.4.2018 to 13.8.2018 (431 days).

14. Insurance Company is directed to deposit enhanced amount of compensation in the tribunal within six weeks from the date of receipt of certified copy of this judgment.

C/FA/1407/2020 ORDER DATED: 27/09/2021

15. In view of the above, the appeal is allowed. Judgment and award dated 03.04.2018 passed by the MACT (Main), Dahod in MACP No.337/2008 is hereby modified and the appellant claimants are entitled to Rs.4,79,500/- as compensation in place of Rs.3,22,720/- as awarded by the tribunal. Accordingly, the claimants are entitled to Rs.1,56,780/- as additional compensation with 7% interest except for a period from 3.4.2018 to 13.8.2019 (431 days) with proportionate costs.

16. The Insurance Company is directed to deposit the amount of enhanced compensation in the tribunal within six weeks from the date of receipt of certified copy o this judgment.

17. Parties are left to bare their own costs.

(A.G.URAIZEE, J)

Manoj

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 

LatestLaws Partner Event : IJJ

 
 
Latestlaws Newsletter