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2025 Supreme(Guj) 1268

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.Y. KOGJE, N.S.SANJAY GOWDA, JJ.
Reliance General Insurance Company Ltd - Appellant 
Versus
A Bivathakutti A Moidinkutti & Ors. - Respondents 
R/First Appeal No. 901 of 2017
Decided on : 21-07-2025

Advocates Appeared:
For the Appellant : MR RATHIN P RAVAL
For the Respondent: MR.HIREN M MODI

Court emphasized a study of 'just compensation' must include future income projections, aligning with Apex Court standards, despite the lack of cross-appeals from claimants.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal regarding awarded compensation from a Motor Accident Claims Tribunal - The Insurance Company challenged compensation on grounds of quantum and income proof, emphasizing need for notional income assessment. (Paras 1, 4, 5)

(B) Just compensation - The Court underscores a benevolent interpretation of 'just compensation' as per Section 168, accommodating families' irreparable losses with specificity on future loss of income calculations and established principles from Apex Court precedents. (Paras 10, 14, 20)

(C) Court's calculations - Three deceased's compensation to be adjusted based on newly assessed income reflecting prospective earnings, with supporting documentary evidence as required. (Paras 18, 19)

Facts of the case:
The appeal arose from a collision involving a Bolero Jeep and a truck leading to multiple injuries and deaths on 23.06.2011, with an awarded compensation previously deemed excessive. The evidence for the deceased’s income was disputed, necessitating a proper assessment.

Findings of Court:
The appeal sees modifications to the awarded compensation based on careful drive towards common principles of just compensation, leading to a total compensation adjustment from Rs.37,17,500/- to Rs.39,78,425/-. (Paras 20, 21)

Issues: The appeal addressed income assessment validity and compensation head conformity with Apex Court decisions.

Ratio Decidendi: The Court recognized established principles dictating a just compensation should not merely rely on the earlier Tribunal's assessment but take into account reasonable future projections alongside any necessary evidence adjustments, prioritizing the fair treatment of claimants.

Result: The appeal is partly allowed to reflect revised compensation parameters.

Table of Content
1. introduction of appeal and accident background (Para 1 , 2)
2. arguments on compensation amount (Para 4 , 5 , 6 , 7 , 8)
3. principles for just compensation (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. assessment of monthly income and adjustments (Para 18 , 19)
5. final compensation calculation and order (Para 20 , 21 , 22)

JUDGMENT :

A.Y. KOGJE, J.

1. The present First Appeal under Section 173 of the MOTOR VEHICLES ACT , 1988 is preferred by the Insurance Company against the judgment and award dated 10-11-2016 passed by Motor Accident Claims Tribunal (3rd Aux), Bhuj-Kachchh in M.A.C.P. No.411 of 2011.

2. The present Appeal and other cognate appeals arising from one accident with took place on 23.06.2011, wherein the deceased and others were traveling in a Bolero Jeep on a highway in Taluka: Abdasa, District: Kutch and at spot of accident and on coming truck collided with the Bolero Jeep, which led to several persons being injured and three persons having died of which one of the deceased being the relative of the claimant had filed the claim petition before the Motor Accident Claim Tribunal, Bhuj, which ultimately came to be disposed of by a common impugned judgment and award.

3. The Insurance Company has filed various appeals being aggrieved by the award on various grounds and the same have been dealt with independently by the Court in different orders.

4. Insofar as the present appeal is concerned, the same has been challenged on the ground of quantum as according to the Insurance Company, the compensation awarded is exorbitantly high.

5. It is the case of the Insurance Company that the claimants were unable to establish the income proof as the salary of the deceased was not established on basis of any cogent evidence and in absence of any proof of income tax being paid a notional income of Rs.3,000/- should have been considered as the monthly income.

6. Learned advocate for the appellant has thereafter argued that the heads under which the compensation is granted by the Tribunal is not in conformity with the decision of the Apex Court in case of National Insurance Co. Ltd vs Pranay Sethi reported in 2017 (16) SCC 680 and therefore submitted that under the various heads of last rites and loss of estate, higher compensation is awarded wherein grant of compensation under the head of loss of expectation of life was unwarranted.

7. As against this, learned Advocate for the respondent-claimants has submitted that though the compensation granted under the heads of last rites and loss of estate as well as loss of expectation of life, be on the higher side, however, considering the evidence on record with regard to the age and income, then also necessary formula as applicable under the pronouncement of the Apex Court decision, then the prospective income is required to be taken into consideration and therefore, just compensation may be awarded.

8. In rejoinder, learned Advocate for the Insurance Company has submitted that as the claimants have not filed the Appeal against the judgment and award, nor have they filed any cross objection and therefore, the claimants cannot claim recalculation of the compensation by adding a head under which the compensation is sought to be enhanced.

9. Having heard learned advocates for the parties and having perused the documents on record, the Court may at the outset refer to various pronouncements of the Apex Court, concept of just compensation as contemplated under Section-168 of the Act, where a benevolent interpretation has been given to the word just compensation to compensate the relatives of the deceased, who have suffered an irreparable loss in terms of financial, social and moral support.

10. As per the impugned judgment and award, the compensation granted by the Tribunal under various heads in a tabular form is as under:

Sr. No.ParticularAmount (Rs.)
1Loss of future earnings32,17,500/-
2Loss of Love and Mental agony3,75,000/-
3Last rites25,000/-
4Loss of estate50,000/-
5Loss of expectat

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