Gujarat High Court

Bajaj Alliance General Insurance ... vs Mafabhai Ajubhai Bharwad on 13 November, 2025

                                                                                                               NEUTRAL CITATION




                            C/FA/1175/2013                                    JUDGMENT DATED: 13/11/2025

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                                 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                              R/FIRST APPEAL NO. 1175 of 2013

                                                           With
                                             R/CROSS OBJECTION NO. 141 of 2013
                                                            In
                                              R/FIRST APPEAL NO. 1175 of 2013

                      FOR APPROVAL AND SIGNATURE:


                      HONOURABLE MR.JUSTICE MOOL CHAND TYAGI

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                                   Approved for Reporting                     Yes            No
                                                                                         ✔
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                            BAJAJ ALLIANCE GENERAL INSURANCE COMPANY LIMITED
                                                THROUGH
                                                  Versus
                                     MAFABHAI AJUBHAI BHARWAD & ORS.
                      ==========================================================
                      Appearance:
                      MASUMI V NANAVATY(9321) for the Appellant(s) No. 1
                      MR VIBHUTI NANAVATI(513) for the Appellant(s) No. 1
                      MR HEMANT S SHAH(756) for the Defendant(s) No. 1,2
                      RULE SERVED for the Defendant(s) No. 3,4
                      ==========================================================

                        CORAM:HONOURABLE MR.JUSTICE MOOL CHAND TYAGI

                                                        Date : 13/11/2025
                                                         ORAL JUDGMENT

1. The captioned appeal is filed by the Insurance Company

against the impugned judgment and award dated 19.12.2012

passed by the learned Tribunal (Auxi) Court No.16, City Civil &

Sessions Court, Ahmedabad in Motor Accident Claim Petition

No.85 of 2006, whereby the learned Tribunal has awarded a sum

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of Rs.2,62,500/- as a compensation along with the interest at

the rate of 7.5% per annum from the date of filing of the claim

petition till realization.

2. Upon being served with the notices of the appeal, the

respondents/original claimants preferred the captioned Cross-

objection in the captioned appeal and thereby prayed for

enhancement of compensation.

3. The succinct facts leading to file the present appeal and

Cross-objection are as under:-

3.1 The claim petition has been preferred under Section 163-A

of the M. V. Act 1988 for seeking compensation on account of

the death of Somabhai Mafabhai Bharwad, the son of the

original claimants in vehicular accident. On 14.04.2006 at

around 1.00 a.m, the son of the original claimants was going as

pedestrian on road towards his house on 132 ft. Ring Road and

when he reached near Shaktinagar Chhapra, opposite

Gokuldham Society, in the meantime, one Maruti Car bearing

registration No.GJ-1-HK-3809 came in full speed from the RTO

side and hit said Somabhai Mafabhai Bharwad and due to the

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accident said Somabhai Mafabhai Bharwad fallen down on the

road and sustained grievous injuries on his head and body and

caused severe bleeding. He was taken to the Vadilal Sarabhai

Hospital for the treatment but during the treatment he

succumbed to the injuries. It is also the case of the

claimants/respondents in the appeal that at the time of

accident, the deceased was aged about the 24 years and he was

gainfully earning by doing the business of glass polishing and

designing.

4. Upon being served with the notices of the claim petition,

the Insurance Company-appellant herein filed the written

statement at Exh-24 and thereby denying all the averments

made in the petition and prayed for dismissal.

5. Having considered the pleadings of the parties, the learned

Tribunal has framed the issues at Exh-38/A which are as

under:-

"1. Whether the applicants prove that the deceased died due to the injuries sustained in the accident caused by rash and negligent driving of driver of vehicle involved in the accident?

2. Whether applicants are entitled to get compensation? If yes, what amount and from whom?

3. What award?"

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6. Having considered the materials on record, the learned

Tribunal had partly allowed the claim petition and awarded a

sum of Rs.2,62,500/- as a compensation along with the interest

at the rate of 7.5% per annum from the date of filing of the claim

petition till its realization.

7. Being aggrieved and dissatisfied with the award, the

Insurance Company has filed the captioned appeal and the

original claimants have filed the captioned Cross-objection for

enhancement.

8. Heard learned advocates for the parties.

9. Learned advocate for the appellant submitted that the

learned Tribunal has awarded the compensation at a higher

side, therefore, the award is required to be modified.

10. On the other hand, learned advocate for the original

claimants/objectors submitted that the learned Tribunal has

awarded the compensation at lower side. He further submitted

that the learned Tribunal has considered the income of the

deceased at lower side which is lower than the minimum wages

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prevalent at the time of accident. He further submitted that the

learned Tribunal has committed error in applying the multiplier

in accordance to the age of the parents. He further submitted

that it is on record that the deceased was aged about 24 years at

the time of accident, therefore, the learned Tribunal ought to

have awarded the compensation in accordance to the Second

Schedule annexed with Act. In support of his contention learned

advocate for the original claimants submitted that the learned

Tribunal ought to have considered the ratio of the judgment of

the Hon'ble Apex Court rendered in the case of National

Insurance Company Limited Vs Gurumalla and another

reported in (2009) 16 SCC 43.

11. Having considered the submissions of the learned

advocates for the parties, it is to be noted that the learned

Tribunal has determined the income of the deceased at

Rs.2,500/- and further added 30% on account of future

prospective income of the deceased and determined the annual

income at Rs.39,000/- and further deducting ½ of the income

on account of the personal expenses of the deceased being the

bachelor. The learned Tribunal has also applied the multiplier in

accordance to the age of the parents and the learned Tribunal

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has also awarded a sum of Rs.5,000/- under the head of Loss of

Consortium and further a sum of Rs.2,000/- under the head of

Loss of Estate and a sum of Rs.2,000/- under the head of

funeral expenses. The learned Tribunal has to calculate the

amount of compensation in accordance to the ratio of the

judgment rendered in the case of Gurumallamma(supra)

wherein para-6 to 9 the Apex Court has observed as under:-

"6. The Second Schedule provides for the amount of compensation for third-party fatal accident/injury cases claims. It provides for the age of the victim and also provides for the multiplier for arriving at the amount of compensation which became payable to the heirs and legal representatives of the deceased depending upon his annual income.

7. The Second Schedule furthermore provides that in a case of fatal accident, the amount of claim shall be reduced by one-third in consideration of the expenses which the victim would have incurred upon himself, had he been alive. It provides for the amount of minimum compensation of Rs 50,000. It furthermore provides for payment of general damages as specified in Note 3 thereof.

8. Multiplier stricto sensu is not applicable in the case of fatal accident. The multiplier would be applicable only in case of disability in non-fatal accidents as would appear from Note 5 appended to the Second Schedule. Thus, even if the application of multiplier is ignored in the present case and the income of the deceased is taken to be Rs.3,300/- per month, the amount of compensation payable would be somewhat between Rs.6,84,000/- to Rs.7,60,000/-.

9. As the Second Schedule provides for a structured formula, the question of determination of payment of compensation by application of judicial mind which is otherwise necessary for a proceeding arising out of a claim petition filed under Section 166 would not arise. The Tribunal in a proceeding under Section 163-A of the Act is required to determine the amount

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of compensation as specified in the Second Schedule. It is not required to apply the multiplier except in a case of injuries and disabilities."

12. Applying the ratio of the above judgment in the present

case and having regard to the year of accident and minimum

wages prevalent at the time of accident the annual income of the

deceased is determined at Rs.40,000/- per annum. Therefore, as

per the Second Schedule the total amount of compensation

would come to Rs.7,20,000/-.

13. As per the second schedule 1/3 of the aforesaid amount is

to be deducted on account of personal expenses of the deceased,

therefore, the amount of loss of dependency would come to

Rs.4,80,000/- (Rs.7,20,000/- -(minus) Rs.2,40,000/-). Further a

sum of Rs.2,000/- on account of the funeral expenses and a

sum of Rs.2,500/- on account of loss of estate is added.