Citation : 2025 Latest Caselaw 1496 Guj
Judgement Date : 30 July, 2025
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 3447 of 2011
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE D. M. VYAS
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Approved for Reporting Yes No
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LEGAL HEIRS OF DECD. MAGANBHAI LALJIBHAI DESAI & ORS.
Versus
LAXMANJI DARGAJI THAKOR & ORS.
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Appearance:
MS ARCHANA R ACHARYA(2475) for the Appellant(s) No. 1,2,3
MR DAKSHESH MEHTA(2430) for the Defendant(s) No. 3
MR. RUSHANG D MEHTA(6989) for the Defendant(s) No. 3
RULE SERVED for the Defendant(s) No. 1
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CORAM:HONOURABLE MR.JUSTICE D. M. VYAS
Date : 30/07/2025
ORAL JUDGMENT
1. The present appeal is filed by the original claimants under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as the "Act, 1988") being aggrieved and dissatisfied with the impugned judgment and award dated 26.09.2011 passed by the Motor Accident Claims Tribunal (Auxi), Banaskantha at Palanpur in MACP No.560 of 1993.
2. Vide the said impugned judgment and award, the Tribunal has partly allowed the claim petition preferred by the present appellants - original claimants under Section 166 of the Act, 1988 holding the present appellants- original claimants entitled to an amount of Rs.2,02,500/- with interest at the rate of 7.5% per annum from the date of filing of such
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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claim petition till its actual realization with proportionate costs. Thus, the Tribunal has not entertained the claim petition for an amount of Rs.5 lakhs as total compensation.
3. This Court vide order dated 17.11.2011 noticing the submissions made by the learned advocate for the appellants- original claimants and the grounds raised in the appeal, has admitted the appeal.
4. Learned advocate Mr. Vishvajit Vadher on behalf of Ms. Archana Aacharya, learned advocate appearing for the appellants- original claimants has assailed the impugned judgment and award passed by the Tribunal mainly on two counts on the issue of quantum of compensation. Firstly, it was submitted that the Tribunal has assessed the income of the deceased and secondly, the amount awarded under the conventional heads are on the lower side. Learned advocate has invited my attention of the findings and reasons assigned by the Tribunal on the aforesaid issue. It is submitted by the learned advocate for the appellants- original claimants that the deceased was earning Rs.2,000/- by working as ST driver. The salary slip of the deceased has also been produced on record vide Exhibit-37. It is also submitted that the deceased was earning Rs.1000/- from the agricultural activity as well. However, the Tribunal has assessed the income of the deceased to Rs.1,500/- per month only. He has submitted that considering the ratio laid down by the Hon'ble Supreme Court in the case of National Insurance Company Ltd Vs. Pranay Sethi, reported in AIR 2017 SC 5157 40% towards future prospects of income is required to be taken into consideration.
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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He has further submitted that the Tribunal has rightly adopted the multiplier of 15 noticing the age of the deceased at the time of the accident. Learned advocate has therefore, submitted that the amount of compensation awarded towards the head of loss of future income may be enhanced from Rs.1,80,000-/- to Rs.3,20,040/-. As regards the amount awarded under the head of loss of consortium is concerned, learned advocate has once again invited my attention to the fact that the deceased was survived by widow and two children and are therefore, entitled to enhance amount of compensation towards loss of consortium in light of the decision of the Hon'ble Supreme Court in the case of Magma General Insurance Co. Ltd vs. Nanu Ram Alias Chuhur Ram & Ors reported in (2018)18 SCC 130. He urged therefore to enhance the amount of loss of consortium Rs.1,45,200/- (Rs.48,400/- x 3). Learned advocate has lastly submitted that the amount awarded under the conventional heads, more particularly, towards funeral expenses and loss of estate, is also required to be enhanced to Rs.18,150/- respectively, in view of the decision of the Hon'ble Supreme Court in the case of Pranay Sethi (supra). By making the aforesaid submissions, learned advocate has urged this Court to enhance the amount of compensation to the tune of Rs.2,97,500/- which may be awarded with interest at the rate of 12% per annum from the date of filing of claim petition till its actual realization.
5. Learned advocate Mr. Dakshesh Mehta appearing of the respondent no.3- Insurance Company has placed reliance upon the findings and reasons assigned by the Tribunal and
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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vehemently argued that the compensation must be awarded as just, proper and reasonable and not higher side and further submitted that learned Tribunal, after appreciating the materials available on record, awarded the compensation under each head is just, proper and reasonable and not required to interfere and lastly prayed to dismiss the appeal.
6. Heard learned advocates for the respective parties on the disputes between the parties in narrow compass and perused the record and proceedings and impugned judgment and award, more particularly, the findings and reasons assigned by the Tribunal while considering the issue of quantum of compensation.
7. As regards the submissions made by the learned advocate for the appellants on the assessment of the income of the deceased is concerned, the tribunal has made no error in not considering the agricultural income and the reasons assigned by the tribunal to that effect is satisfactory. However, the Tribunal committed error in assessing the income of the deceased to the extent of Rs.1,500/- per month only. The deceased was working as a driver in the ST Department. Noticing the work with which the deceased was associated and the evidence produced in that regard, this Court is inclined to enhance the income in view of the aforesaid. Thus, the income of the deceased is determined as Rs.2000/- per month.
8. As regards the future prospect is concerned, in view of the judgment of the Hon'ble Supreme Court in the case of Pranay Sethi (supra) noticing the age of the deceased as 36
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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years, as accepted by the Tribunal by considering the postmortem report produced on record at Exh.42 and noticing the fact that deceased was fixed salary employee, 40% amount can be considered towards the future prospects of the deceased. As rightly recorded by the Tribunal, considering the fact that the deceased was survived by widow and two children, 1/3rd deduction has been applied towards spend by the deceased on himself. Thus, the calculation of the prospective income of the deceased at the rate of 40% is considered as Rs.2000/- * 40% (Rs.800/-) = Rs.2800/-. After 1/3rd deduction towards personal expese of the deceased, the calculation of the income the deceased is Rs.1867/-(Rs.2800/- - Rs.933/- (1/3rd deduction towards personal expenses.) Noticing the fact that the deceased was aged 36 years at the time of accident, in light of the decision of the Hon'ble Supreme Court in the case of Sarla Verma and ors. vs. Delhi Transport Corporation and Anr. reported in (2009) 6 SCC 121 and the scheduled prescribed, the Tribunal has rightly applied multiplier of 15 in the facts of the case. Thus, the future loss benefit is determined as Rs.2800/-*12*15 (Multiplier) which comes to Rs.3,36,060/-. This brings me to the issue of loss of consortium as prayed for by the learned advocate for the appellants- original claimants. As rightly prayed for by the learned advocate for the appellant in view of the decision of the Hon'ble Supreme Court in the case of Magma General Insurance Co. Ltd (supra), the claimants would be entitled to enhance amount of compensation under the head of loss of consortium to the tune of Rs.1,45,200/- (Rs.48,400/- X 3). Lastly, the amount to be awarded under the conventional heads, more particularly, funeral expenses and
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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the loss of estate is also required to be reconsidered in view of the decision of the Hon'ble Supreme Court in the case of Pranay Sethi (supra). The same is to be considered as Rs.18,150/- respectively.
9. Therefore, original claimants - appellants herein are entitled to enhanced amount as computed hereunder:
Compensation As per award under As awarded by this challenge (Rs.) Court (Rs.)
Actual salary/ 1500/- 2000/-
income
Prospective income - 800/- (40%)
Deduction of 1/3 (Rs.500/-) 1/3(Rs.933/-)
amount spent by
the deceased on
himself
Future Loss 1000/-*12*15 1867/-*12*15
= Rs.1,80,000/- = Rs.3,36,060/-
For loss of 1,45,200/- (48,400/-
consortium Rs.20000/- X 3)
(consolidated sum)
Loss of Estate 18,150/-
Funeral expenses 2500/- 18,150/-
and transportation
Total Compensation Rs.2,02,500/- Rs.5,17,560/-
Enhanced - Rs.5,17,560/- minus
compensation Rs.2,02,500/-
=Rs.3,15,060/-
10. For the foregoing reasons, the impugned judgment and award dated 26.09.2011 passed by the Motor Accident Claims Tribunal (Auxi), Banaskantha District at Palanpur in MACP
NEUTRAL CITATION
C/FA/3447/2011 JUDGMENT DATED: 30/07/2025
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No.560 of 1993 hereby modified. The appellants- original claimant are held entitled to compensation of an amount of Rs.5,17,560/-. Since by impugned judgment and award the Tribunal has awarded an amount of Rs.2,02,500/-, the appellants shall be entitled to enhanced amount of compensation to the tune of Rs.3,15,060/- (Rs.5,17,560/- -
Rs.2,02,500/-) with interest at the rate of 7.5% from the date of filing of claim petition till its actual realization. The respondents - original opponents are held jointly and severally liable to pay such enhanced amount of compensation with proportionate costs and interest.
11. Let, the aforesaid amount be deposited with the concerned Tribunal within a period of 8 weeks from the date of receipt of the present order. On deposit of the aforesaid amount, the Tribunal shall be at liberty to release and disburse the entire award amount in favour of the original claimant, after due verification as per the original judgment and award.
12. Let, such exercise be undertaken by the Tribunal strictly in accordance with the guidelines prescribed by the Hon'ble Supreme Court in this regard; preferably within a period of two weeks from deposit of such amount. The Tribunal is directed to realize the deficit Court fees before proceeding with the disbursement of the amount.
13. R&P be sent back to the concerned tribunal forthwith, if received.
(D. M. VYAS, J) Anuj
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