IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Mauna M. Bhatt, J.
Shantaben Sanjaykumar Prajapati & 3 Others – Appellants
Versus
Daudbhai Abubhai Kadri & 2 Others – Defendants
R/First Appeal No. 1128 of 2014
Decided On : 11-11-2022
Motor Vehicles Act - Compensation - Section 173 - Rs.5,76,000/-, Rs. 10,000/-, Rs. 2,500/- - The court discussed the assessment of income, future prospective income, loss of consortium, loss of estate, and funeral expenses. It referenced the case of National Insurance Company Limited vs. Pranay Sethi and Others (2017) 16 SCC 680 and Sarla Verma and others Vs. Delhi Transport Corporation and another (2009) 6 SCC 1211 to support the decision. The court allowed the appeal and enhanced the compensation to Rs.11,98,000/-.
Fact of the Case:
The original claimants filed a claim petition seeking compensation under section 166 of the Motor Vehicles Act for the death of the deceased in a road accident. The Tribunal awarded compensation of Rs.5,98,500/-, which the claimants appealed seeking enhancement.
Finding of the Court:
The court found that the Tribunal erred in assessing the income of the deceased and not awarding compensation under various heads. It allowed the appeal and enhanced the compensation to Rs.11,98,000/-.
Issues: Assessment of income, future prospective income, loss of consortium, loss of estate, and funeral expenses.
Ratio Decidendi: The court held that the income of the deceased was assessed incorrectly and referenced legal provisions and previous judgments to support the decision to enhance the compensation.
Final Decision: The appeal was partly allowed, and the compensation was enhanced to Rs.11,98,000/- with interest at the rate of 6% per annum.
JUDGMENT :
1. This appeal under Section 173 of the Motor Vehicles Act, 1988 (“the Act” for short) is filed by the original claimants as appellants challenging the judgement and award dated 19/12/2013, passed by the Motor Accident Claims Tribunal (Aux-4), Mehsana in Motor Accident Claim Petition No.505 of 2009, wherein claim petition filed by the original claimants came to be allowed in part and compensation of Rs.5,98,500/- was awarded with interest at the rate of 9% per annum from the date of filing of the claim petition till realization.
2. Brief facts, arising from the record, are as under :
On 10/06/2009 at around 6:00 hours in the morning, Sanjaykumar Manilal Prajapati was going driving a scooter bearing registration No.GJ-2-AE-4138 with his nephew Jaimin as pillion rider. Sanjaykumar was going to the school at Kadi to drop his nephew. When he was coming back and reached near Anand park society, Kinara Cinera at Kadi-Nandasan Highway, a Truck bearing registration No.GJ-14-T- 3295 came in rash and negligent manner with full speed and dashed with scooter of Sanjaykumar Manilal Prajapati (hereinafter referred to as “the deceased”). Resultantly, the deceased fell down and sustained serious injuries and scummed to death. For the said accident, legal heirs of the deceased as original claimants, filed claim petition being Motor Accident Claim Petition No.505 of 2009 under section 166 of the Motor Vehicles Act, seeking compensation of Rs.12,00,000/-. It was case of the original claimants that accident occurred due to sole negligence of the driver of the truck.
Upon filing of the claim petition, Notices were issued. Respondents appeared and filed their written statements. Tribunal after hearing the parties and upon appreciation of oral and documentary evidence on record, decided the issue of negligence in favour of the original claimants by holding driver of the Truck, sole negligent for the said accident. In the impugned judgement and award, the Tribunal awarded total compensation of Rs.5,98,500/- with interest at the rate of 9% per annum from the date of filing of the claim petition till realisation, under different heads, as under:
| Future loss of income or future dependency loss | Rs.5,76,000/- |
| Loss of estate | Rs. 10,000/- |
| Loss of love and affection | Rs. 10,000/- |
| Funeral expenses | Rs. 2,500/- |
| Total compensation | Rs.5,98,500/- |
3. Aggrieved by the amount of compensation awarded, present appeal is filed by the original claimants seeking enhancement.
4. Heard learned advocate Mr.A.V.Prajapati, for the appellants-original claimants, learned advocate Mr.Palak Thakkar, for respondent No.3- Insurance Company. Since liability has not been denied by respondent No.3, presence of other respondents is not necessary for deciding this appeal and dispensed with. Record and proceedings of the case have been secured and placed before this court for perusal.
5. Mr.A.V.Prajapati, learned advocate for the appellants submitted that the Tribunal is in error in not assessing the income of the deceased correctly. He further submits that the deceased was doing multiple business like Pan parlour, stationary, cutlery, cold drinks, STD PCO, coin calls telephone booth and snacks parlour and earning Rs.8,000/- per month. The deceased was possessing cabin for the aforesaid business and was also paying rent of Rs.2,500/- per month for the said cabin. Further, the deceased was also earning Rs.1,000/- per month as his agricultural income and thus, he was totally earning Rs.1,08,000/- per year. Relying upon the rent agreement exhibited at Exh.37 executed for the lease of cabin, in which, the deceased was doing his business, he submitted that payment of rent of Rs.2,500/- per month, supports the case of the original claimants that he was earning Rs.8,000/- out of the said business. He has also relied upon the deposition of Bababhai Punjabhai
National Insurance Company Limited vs. Pranay Sethi and Others
United India Insurance Company Vs. Satinder Kaur @ Satwinder Kaur
Magma General Insurance Co. Ltd. Vs. Nanu Ram Alias Chuhru Ram
The main legal point established in the judgment is the correct assessment of income and the application of legal provisions and previous judgments to support the decision to enhance the compensation....
The central legal point established is the assessment of just and reasonable compensation under the Motor Vehicles Act, considering various factors such as future income, consortium, funeral expenses....
The assessment of notional income, future prospects, and various heads of compensation under the Motor Vehicles Act influenced the court's decision to modify the judgment of the Claims Tribunal.
The central legal point established in the judgment is the proper assessment of compensation under the Motor Vehicles Act, taking into account the deceased's income, future prospects, and loss of con....
The main legal point established in the judgment is the application of principles of fairness, reasonableness, and equitability in determining just and proper compensation in motor vehicle accident c....
The court applied legal principles from relevant Supreme Court decisions to re-assess the income of the deceased and determine the entitlement to different heads of compensation under the Motor Vehic....
Compensation awarded should reflect fair and just assessment according to established legal principles outlining dependency and loss calculations.
The main legal point established in the judgment is the re-assessment of the claimant's income and future loss of income for the calculation of compensation.
Compensation must reflect just and fair standards based on income potential and dependency as per Motor Vehicles Act provisions.
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