Citation : 2025 Latest Caselaw 1713 Guj
Judgement Date : 9 January, 2025
NEUTRAL CITATION
C/FA/3598/2024 ORDER DATED: 09/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 3598 of 2024
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VIJYABEN DAMJIBHAI BLADHA & ANR.
Versus
DILUBHA DOSALBHAI BORICHA & ANR.
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Appearance:
NISHIT A BHALODI(9597) for the Appellant(s) No. 1,2
MR PALAK H THAKKAR(3455) for the Defendant(s) No. 2
MR. M. H. PAREKH(16428) for the Defendant(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 09/01/2025
ORAL ORDER
1. The present First Appeal, under Section 173 of Motor Vehicles Act, 1988, is preferred by the appellants - original claimants being aggrieved and dissatisfied with the judgment and award dated 10.02.2024 passed by the Motor Accident Claims Tribunal, Rajkot in Motor Accident Claim Petition No.1465 of 2018.
2. Brief facts of the case are as under:
2.1 On 24.11.2018, while Sagarbhai (deceased) was riding his motorcycle in moderate speed on correct side of road, at about 11.00 am, when he reached at the place of accident, driver of Car No.GJ-03-EC-7088 came in rash and negligent manner with excessive speed and caused accident with motorcycle from behind. On accident, deceased sustained fatal injuries and later on died.
NEUTRAL CITATION
C/FA/3598/2024 ORDER DATED: 09/01/2025
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3. Learned advocate Mr.Bhalodi for the appellant submitted that at the time of accident, deceased was working as Assistant Professor in Mechanical Engineer Department of Dr.Subhash Technical Campus, Junagadh. It is submitted that deceased was salarized person and paying income tax. He would submit that salary of the deceased on on rise, yet learned Tribunal took up average income considering income tax return at Exh.37 to 39 instead of taking last income tax return for the purpose of assessing loss of dependency as well as future prospects. Secondly, it is submitted that learned Tribunal has erred, in the case on hand car driver fled from the spot of accident and therefore, action on the part of the car driver itself is suggestive that car driver was more negligent then what is assessed by the learned Tribunal. He submitted that car driver be held 85% negligent in causing road accident and deceased may be held 15% negligent, as it is case of head on collusion manner.
3.1. Lastly, it is submitted that compensation under non pecuniary heads granted by learned Tribunal is on lower side. On this counts, learned advocate for the appellant submitted to allow the appeal.
4. On the other hand, learned advocate Mr.Thakkar for the Insurance Company submitted that claimant has said wrong facts in the claim petition. Claimant came out with the case that car dashed motorcycle from behind, however, evidence on record indicates that car was coming from opposite side and dashed with motorcycle. It is submitted that in case of head on collusion, learned Tribunal has rightly assessed contributory
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negligence of the deceased to 20%. There is no need to reduce contributory negligence of the deceased and enhance compensation. So far as enhancement of compensation is concerned, learned advocate Mr.Thakkar submitted that learned Tribunal has granted just and fair compensation considering safe and appropriate approach by taking average of three income tax returns. Looking to all this aspects, he submits to dismiss the appeal.
5. Having heard learned advocates for both the sides and considering evidence produced by parties on record, it is to be noted that deceased at the time of accident was 27 years old bachelor and lost his life in the road accident, being top killer in the country. He was salarized person. Claimants being parents of the deceased have place on record degree certificate of deceased which demonstrate that deceased completed Masters in Mechanical Engineering. Salary certificate of the deceased issued by Dr. Subhash Technical Campus, Junagadh is produced at Exh.42. Income tax return filed by the deceased for the yea 2016-17, 2017-18 and 2018-19 are produced on record at Exh.37 to 39. Perusal of the salary certificate and Income tax returns indicates that there is steep rise in the income of the deceased. Learned advocate Mr.Thakkar for the Insurance Company submits that learned Tribunal has taken safe approach to take average income of the deceased from last three income tax returns, but since there is rise in the income of the deceased, salary certificate in last income tax return is required to be taken as income of the deceased.
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C/FA/3598/2024 ORDER DATED: 09/01/2025
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6. In Sangita Arya and others vs. Oriental Insurance Company Limited and others - 2020 (5) SCC 327, the Hon'ble Supreme Court deprecated the approach of the tribunal to take average of the income of the deceased on the basis of ITR filed for last three or four years. Para 12.2, 13 and 14 thereof reads as under :
"12.2 Second, the High Court determined the income of the deceased by taking the average of the ITRs filed for the years 200203 at Rs. 54,000 p.a., 200304 at Rs. 52,405 p.a., and 200405 at Rs. 51,500 p.a. The learned Single Judge disregarded the ITR for the year 200607, wherein the income of the deceased was shown as Rs. 98,500 p.a. on the ground that it was allegedly filed almost one year after the death of the deceased. This finding also is factually incorrect.
13. A photocopy of the original ITR for the year 2006-07 was filed before this Court, bearing the rubber stamp of the Income Tax Department. It shows that the date of filing the ITR was 20.04.2007, which is prior to the death of the deceased which occurred on 18.06.2007. Hence, the High Court was not justified in disregarding the ITR for the year 2006-07 while assessing the income of the deceased. The Appellants have also placed on record a copy of the ITR for the year 2005-06, which bears the rubber stamp of the Income Tax Department, and reveals the income of the deceased at Rs. 98,100 p.a. during the previous assessment year. As a consequence, the impugned judgment dated 22.07.2016 passed by the High Court is hereby set aside.
14. On a perusal of the documentary evidence on record i.e. the ITRs for the assessment years 2005- 06 and 2006-07, filed prior to the death of the deceased, which reflect the income of approximately Rs. 1,00,000 p.a. (as assessed by
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the MACT in its Award dated 22.12.2009), we make this the basis for computing the compensation payable to the Claimants. We find that the Courts below have not awarded any amount towards future prospects, as mandated by the judgment of the Constitution Bench in National Insurance Company Limited v. Pranay Sethi & Ors. Accordingly, we award future prospects @40% of the income of the deceased."
7. In earlier judgment in case of Shashikala vs. Gangalakshmamma - 2015 (9) SCC 150, the Hon'ble Apex Court observed that in case of rise of income, last income tax return can be safely relied upon to take base. Relevant para 20 is reproduced here under :
"20. The deceased was aged 45 years and was doing transport business. Though the claimants have filed income tax returns for two assessment years 2005-06 and 2006-07, as per the income tax returns for the year 2006-07, the income of the assessee was Rs.2,02,911/-. Tribunal did not take the income of the deceased for the assessment year 2006-07 on the ground that only xerox copy was filed and the claimants have failed to examine income-tax authorities to prove the same. Instead of taking the income of the deceased as per the assessment year 2006-07, the High Court has chosen to calculate the average of the income for two assessment years 2005-06 and 2006-07. Considering the age of the deceased and the nature of business he was doing, in my considered view, the High Court was not justified in so taking the average of income of the two assessment years. The deceased was aged 45 years and doing business. Admittedly, he was also owning agricultural lands. Even though agricultural income was not shown in the income tax return, it emerges from the evidence that the deceased was also doing agricultural work."
NEUTRAL CITATION
C/FA/3598/2024 ORDER DATED: 09/01/2025
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8. In Rupali Kailas Mamode vs. National Insurance Company Limited - 2023 ACJ 327, the Hon'ble Supreme Court accepted to take up last income tax return as yardstick to award compensation. Para 3 of the said judgment reads as under :
"3. The High Court while reducing the compensation has arrived at the conclusion that the income as indicated in the last returns would not be justified and the average of three years is taken and therefore has reduced the compensation. Though learned counsel for the respondent Insurance Company seeks to contend that the High Court having taken note of the decisions rendered by this Court has arrived at such conclusion, we are of the opinion that in the present facts of the case, in any event such conclusion by the High Court was not justified. This is for the reason that as noted the deceased was an architect and he was doing contract work, the income-tax returns which he had filed from the period 2004- 2005 onwards indicated that there was a steep increase in his income as compared to a sum of Rs.89,964/- declared in the year 2004-2005 and that benefit cannot be denied. If this aspect of the matter is kept in perspective, the income was bound to increase many folds if he had survived and such income which is denied to the family is the loss of dependency which was required to be determined."
9. In view of above, while calculating just and fair compensation, learned Tribunal was required to take last income of the deceased from Income tax return which comes to Rs. 5,94,566/-. Deceased was salarized person, there is rise in come of deceased. Therefore, in view of judgment of National Insurance Company Ltd. v/s. Pranay Sethi [2017 (16) SCC 680], 50% rise in income is to be considered for loss of future dependency. Deceased was 27 years old, which can be seen from School
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C/FA/3598/2024 ORDER DATED: 09/01/2025
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Leaving Certificate at Exh.34. Thus, multiplier of 17 would be applied. Since deceased was bachelor, 1/2 is to be deducted towards personal expenses. Under the head of loss of consortium, both parents are entitled for Rs.48,400/- each and Rs.18,150/- each under loss of estate as well as funeral expenses.
10. Next question arise, whether learned Tribunal committed error in attributing 20% negligence to the deceased. Apt to note that claimant filed claim petition with averments that deceased was riding motorcycle on Vavdi Road. He wa dashed from behind by car No.GJ-03-EC07088. FIR of the accident has been registered with Chalala Police Station against car driver. Father of the deceased entered into witness box at Exh.22 to prove contention raised in the claim petition, but he was not eye witness to road accident. Therefore, his deposition would not be much relevant to decide the issue of contributory negligence. Insurance company could not avert filing of FIR against car driver as also charge-sheet after thorough investigation. Insurance company mainly relied on deposition of driver of car who entered into witness box to say that motorcycle came on wrong side and dashed with car. Learned Tribunal while deciding contributory negligence referred to evidence of driver of car, in back ground of documentary evidence on record, assessed negligence of deceased to 20% and car driver to 805. It is relevant to note that car driver has not filed written statement before the learned Tribunal, despite he was served. He was called by insurance company to give deposition. Deposition of car driver seems to be deposition of person who is interested in
NEUTRAL CITATION
C/FA/3598/2024 ORDER DATED: 09/01/2025
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resolving the dispute and this, it cannot be considered as gospel truth. Panchnama has been drawn post accident has been vividly appreciated by the learned Tribunal and found that santro car was on wrong side of road. In juxtaposition of such aspects, claimants have pleaded false fact that deceased was dashed from behind. Place of car which is shown in the panchanama drawn post accident was on its correct side. Appreciating all these aspects, according to this Court learned Tribunal ought to have apportioned liability in the ratio between deceased and car driver to the extent of 15% and 85% respectively. I fix the same accordingly. Therefore, the claimants are entitled for compensation less of 15% from the total compensation.
11. Therefore, total compensation would be as under, which the claimants/s is/are entitled to get.
Particulars Amount (Rs.)
Future dependency Loss 75,80,640/-
Rs.5,94,566 + 50%= Rs.8,91,840/- divide by 2 = Rs.4,45,920/- and applying 17 multiplier, the total amount would be Rs.75,80640/-
loss of Consortium 96,800/-
Loss of estate 18,150/-
Funeral expenses 18,150/-
Total... 77,13,740/-
Less : 15% self negligency of deceased 11,57,061/-
Less: compensation to be awarded by 57,55,387/-
NEUTRAL CITATION
C/FA/3598/2024 ORDER DATED: 09/01/2025
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Tribunal
Additional amount which is awarded 8,01,292/-
12. Therefore, I hold that the claimantss are entitled to get the enhanced compensation of Rs.8,01,292/- with 9% p.a. interest from the date of filing the claim petition till its realisation, which would meet the ends of justice. Rest of the direction(s) of the Tribunal remain same.
13. For the reasons recorded above, the following order is passed.
13.1 The present appeal is partly allowed.
13.2 The Insurance Company is directed to deposit the enhanced amount with interest as stated herein above within a period of six weeks from the date of receipt of this order.
13.3 The Tribunal shall disburse the entire awarded amount lying in the FDR and/or with the Tribunal, with accrued interest thereon, if any, to the claimants, by account payee cheque / NEFT / RTGS, after proper verification and after following due procedure.
13.4 While making the payment, the Tribunal shall deduct the courts fees, if not paid, in accordance with rules/law. Record and proceedings be sent back to the concerned Tribunal, forthwith.
(J. C. DOSHI,J) SATISH
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