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2025 Supreme(Guj) 1272

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.Y. KOGJE, N.S.SANJAY GOWDA, JJ.
Reliance General Insurance Company Ltd - Appellant 
Versus
Susilavati Mohandas Nair M/o Decd. Shyamprashad Mohandas Nair & Ors. - Respondents 
R/First Appeal No. 903 of 2017
Decided on : 21-07-2025

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

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 apex court rulings.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - First Appeal against the award by the Motor Accident Claims Tribunal regarding compensation for loss of income and other heads - Insurance Company contested the quantum of compensation awarded as exorbitant without proper proof of income by claimants. (Paras 1-4, 6)

(B) Compensation - Just compensation - The court emphasized that under Section 168, just compensation should consider financial, social, and moral loss suffered by claimants. (Para 9)

(C) Evidence - The court considered evidence pertaining to income and ruled out Insurance Company's argument regarding absence of cogent evidence for salary. (Paras 19-19.1)

(D) Modification of compensation - The tribunal's grant for loss of expectation of life and other heads was excessive and not aligned with apex court rulings. (Paras 15-16) (E) Final calculation - New compensation calculated including prospective income, leading to a total award. (Paras 20-21)

Findings of Court:
The compensation awarded was modified to correct errors in the original calculation, raising the total award to reflect a just estimation.

Issues: Main issues included the appropriate calculation of prospective income and whether given the evidence provided, higher compensation should be awarded despite no cross-appeal filed by claimants.

Ratio Decidendi: Court stated that despite not having a cross appeal, it may adjust compensation to reflect a just amount in alignment with established legal principles.

Result: Appeal partly allowed, enhancing compensation by Rs.1,60,456/-.

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.413 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 earnings22,56,744/-
2Loss of Love and Mental agony2,75,000/-
3Last rites25,000/-
4Loss of estate50,000/-
5Loss of expectation of life50,000/-
Total26,56,744/-

11. In a judgment of Apex Court in case of Surekha and others v/s. Santosh and others reported in 2020 ACJ 2156, the Apex Court observed that the High Court had declined to grant the enhancement though an enhanced amount of just compensation was arrived at because the appellant side failed to file a cro

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