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2026 Supreme(Bom) 184

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH KOLHAPUR
M.M. SATHAYE, J.
National Insurance Co. Ltd. – Appellant
Versus
Shobha Pandurang Dabhole – Respondent
First Appeal No. 792 of 2022, Interim Application No. 16818 of 2022
Decided On : 27-03-2026

Advocates Appeared:
For the Appellant : Amol A. Gatne
For the Respondents: Akshay A. Kulkarni, Avesh A. Ghadge

In motor accident claims, appellate court may enhance compensation without claimants' cross-objection for justness; however, interest on enhanced portion from judgment date if claimants delayed filing cross-objections without explanation, avoiding windfall.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Death in motor accident - Quantum of compensation - Income of deceased self-employed in business assessed at Rs.15,000/- per month by Tribunal on basis of savings account showing average cash deposits over Rs.40,000/- monthly over 13 months, supported by tax payment evidence and Sarpanch certificate - Assessment upheld considering business expenses and rural background - Future prospects of 10% awarded following Supreme Court dictum for self-employed aged 55 years - Loss of consortium of Rs.40,000/- awarded to both claimants applicable post relevant judgments - Total compensation enhanced to Rs.15,62,000/- inclusive of no-fault liability. (Paras 7-11)

(B) Appeal by insurer - Enhancement of compensation without claimants' cross-appeal or cross-objection - Permissible to ensure just compensation, not hyper-technical approach. (Paras 14-16)

(C) Interest on enhanced compensation - Normally from date of claim petition under Section 171 - However, where claimants fail to file cross-objection despite notice and inordinate delay of 4 years, interest on enhanced amount from date of appellate judgment to avoid windfall or bonanza, ensuring equitability. (Paras 17-25)

Facts of the case:
Claimants being wife and minor son filed for death of sole breadwinner returning on motorcycle dashed from behind by offending vehicle driven rashly and negligently - Deceased aged 55 years earning from business - Tribunal awarded Rs.13,90,000/- with 7% interest jointly and severally against insurer, owner and driver - Insurer appealed restricting to quantum.

Findings of Court:
Compensation enhanced to Rs.15,62,000/-; interest @7% p.a. on Rs.13,90,000/- from date of claim application till realization; on enhanced Rs.1,72,000/- from date of judgment till realization.

Issues: Quantum of monthly income; entitlement to future prospects and loss of consortium to both; power to enhance absent cross-objection; date from which interest on enhanced amount payable.

Ratio Decidendi: Sufficient evidence including bank statements proved consistent business income justifying assessment; just compensation mandates enhancement sans cross-objection per Supreme Court; interest on enhancement from judgment date given unexplained 4-year delay in seeking it, balancing fairness without bonanza.

Result: Insurer's appeal and stay application dismissed.

Table of Content
1. motor accident death claim under mv act s.166. (Para 1 , 2 , 3)
2. dispute on deceased's income proof from bank deposits. (Para 4 , 5)
3. tribunal income rs.15,000/- upheld by bank evidence. (Para 6 , 7 , 8 , 9)
4. consortium rs.40,000 each; 10% prospects self-employed. (Para 10 , 11)
5. enhancement permissible without claimants' cross-objection. (Para 12 , 13 , 14 , 15 , 16)
6. interest on enhanced amount from judgment due to delay. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23)
7. appeal dismissed; quantified compensation with interest. (Para 24 , 25 , 26 , 27 , 28)

JUDGMENT :

M.M. SATHAYE, J.

1. Admit. In view of narrow controversy involved, the appeal is taken up for final disposal with consent of learned counsel for the parties.

2. The appeal is filed by the Insurance Company challenging Judgment and Award dated 12.02.2021 passed in Motor Accident Claim Petition No. 88/2014 by Member of Motor Accident Claims Tribunal, Islampur, District Sangli. Under the said impugned Judgment and Award, the Appellant-Insurance Company along with owner and driver of the offending vehicle, has been directed to pay jointly and severally an amount of Rs.13,90,000/- inclusive no-fault liability to the Claimants with interest @ 7% per annum from the date of claim application till realization.

3. Few facts necessary for disposal of this appeal, are as under.

3.1. Respondent Nos. 1 and 2 are Claimants who are wife and son of deceased Pandurang Gopal Dabhole. The claim is filed under section 166 of the Motor Vehicles Act, 1988 (‘MV Act’ for short).

3.2. The case of the Respondent Nos. 1 and 2 in short, is as under. That on 24/05/2014, when deceased was returning from Karad to Peth on his motorcycle, the offending Bolero Jeep (KA-23-M-9880) came in rash and negligent manner and gave dash to the deceased from back side. That the deceased suffered serious injury to his head in the accident, who was admitted to hospital; however, he succumbed to the injuries during treatment. That the offending vehicle was insured with the Appellant-Insurance company. That the deceased was doing business of a Mandap Decoration and catering, who was earning Rs. 20,000/- per month and he was only earning member in the family. Compensation of Rs.20,00,000/- was claimed with interest @ 18% per annum.

3.3. The Appellant-Insurance Company filed written statement, inter alia, disputing the quantum of compensation claimed by the Respondent Nos.1 & 2 and also raised other defenses.

4. Learned counsel Mr. Gatne appearing for the Appellant- Insurance Company submitted that the appeal is restricted to submissions on quantum of compensation. He submitted as under. That the income assessed by the Tribunal as Rs.15,000/- per month is on higher side. That the entries in the savings account of the deceased, relied upon by the Tribunal are in respect of month of May 2014 and it only indicates that in that month the amounts were deposited and the same would not necessarily reflect consistent income of the deceased. That the evidence of Gramvikas Adhikari who deposed that the deceased had deposited tax for Mandap Decoration business would only indicate that a business was being conducted but it cannot be taken as any indication for figure of earning. That the certificate of Sarpanch showing that the deceased was doing business of Mandap Decoration for last 30 years, is also not in clear support of the figure claimed. That the wife of the deceased has admitted that no document is possessed by her in respect of purchase of generator and electric material for Mandap Decoration and that she did not know whether deceased maintained the accounts of business. That she has also admitted that deceased was not doing catering business personally. On these grounds it is contended that impugned award is not sustainable.

5. On the other hand, Mr. Kulkarni appearing for the Respondent Nos. 1 and 2-Claimants supported the impugned order contending inter alia that the statement of the deceased’s saving acco

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