IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.Y. KOGJE, N.S.SANJAY GOWDA, JJ.
Reliance General Insurance Company Ltd - Appellant
Versus
Krishna Nilkanth Pillai & Ors. - Respondents
R/First Appeal No. 902 of 2017
Decided on : 21-07-2025
| Table of Content |
|---|
| 1. overview of the case and background details. (Para 1 , 2 , 3) |
| 2. arguments regarding the inadequacy of compensation. (Para 4 , 5 , 6 , 7 , 8) |
| 3. court's examination of compensation principles and precedents. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 18 , 19) |
| 4. determination of proper compensation amounts. (Para 16 , 17 , 20) |
| 5. final adjustment and order on appeal. (Para 21) |
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.412 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. | Particular | Amount (Rs.) |
| 1 | Loss of future earnings | 14,74,200/- |
| 2 | Loss of Love and Mental agony | 3,25,000/- |
| 3 | Last rite | |
The court emphasized that just compensation must align with established principles from Apex Court rulings, allowing adjustments in compensation calculations despite the absence of cross appeals from....
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.
The court affirmed that just compensation under the Motor Vehicles Act must reflect the actual losses suffered by claimants, considering income, expectations, and the guidelines established in prior ....
The court emphasized accurate income assessment and appropriate multipliers to ensure just compensation in motor accident claims, modifying the Tribunal’s award accordingly.
The main legal point established is the determination of compensation amount under the Motor Vehicles Act by considering various judgments.
Court modified compensation due to miscalculation of income and incorrect application of multiplier, reinforcing the need for accurate assessment in motor accident claims.
Compensation in motor vehicle accident claims must consider future prospects of income and reflect the number of dependents, enhancing the initial award for justice.
The court affirmed that enhancements in compensation must consider notional income, future prospects, and reasonable expenses, modifying the existing award in light of established judicial principles....
The court established that a proper assessment of a deceased's income must include standard guidelines and future prospects to ensure just compensation in motor vehicle accident cases.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.