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2025 Supreme(Gau) 1055

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL 
DEVASHIS BARUAH, J.
National Insurance Co. Ltd. - Appellant
Versus
Pallabi Devi W/o Late Ajit Barman - Respondent
MAC App. No. 170 of 2025
Decided On : 23-05-2025


Advocates:
Advocate Appeared:
For the Appellant : C. Phukan
For the Respondents: M. Barman, S. Dey

Compensation under the Motor Vehicles Act must be just and reasonable, incorporating loss of consortium and future prospects as mandated by Supreme Court rulings.

Headnote:(A) MOTOR VEHICLES ACT, 1988 - Sections 168 and 173 - Appeal challenging judgment and award of compensation for death in accident - Award of Rs.12,92,688/- with interest deemed insufficient in light of claimants' rights under established case law on loss of consortium and future prospects - Additional compensation awarded for loss of estate and consortium, which is statutorily mandated by prevailing Supreme Court judgments (Paras 3, 19).

(B) Compensation - The principles regarding future prospects (40% enhancement based on precedent) and loss of consortium (both spousal and filial) highlighted by the Supreme Court in relevant judgments. (Paras 6, 18).

Facts of the case:
Death of the husband of claimant No.1 due to an accident caused by a truck, leading to a claim for just compensation by the wife and mother (Paras 9, 20).

Findings of Court:
Compensation of Rs.13,47,668/- was determined as just and reasonable after considering the additional amounts due regarding loss of consortium and estate (Paras 19, 21).

Issues: Whether the originally awarded compensation was just and reasonable and the consideration of future prospects and loss of consortium (Paras 3, 10).

Ratio Decidendi: The court reiterated the necessity of adhering to Supreme Court mandates concerning compensation quantum, particularly regarding loss of consortium and future earnings, emphasizing the legal obligation to consider all aspects of loss sustained by claimants (Paras 17, 19).

Result: Appeal partly allowed; total compensation modified to Rs.13,47,668/-.

Table of Content
1. judgment appealed regarding compensation quantum and negligence. (Para 1 , 2 , 3 , 4 , 5)
2. defense arguments for claimant's entitlement to compensation. (Para 6 , 7 , 8)
3. incident leading to compensation claim examined. (Para 9 , 10 , 11)
4. future prospects and consortium claims as basis for compensation. (Para 13)
5. court's reasoning on compensation adequacy and legal precedents. (Para 15 , 17 , 18)
6. final compensation determination and order issued. (Para 19 , 20 , 21 , 22 , 23)

JUDGMENT :

DEVASHIS BARUAH, J.

1. Heard Mr. C. Phukan, the learned counsel appearing on behalf of the appellant and Mr. S. Dey, the learned counsel appearing on behalf of the respondent No.1 and Mr. M. Barman, the learned counsel appearing on behalf of the respondent No.2.

2. This is an appeal filed under Section 173 of the MOTOR VEHICLES ACT , 1988 (for short ‘the Act of 1988’) challenging the judgment and award dated 19.08.2019 passed by the learned Member, Motor Accident Claims Tribunal No.2, Kamrup (M) at Guwahati (hereinafter referred to as the learned Tribunal) in MAC Case No.2402/2017 whereby an amount of Rs.12,92,688/- was awarded along with bank interest of fixed deposit from the date of filing of the evidence by the claimant i.e. 19.03.2019.

3. The instant appeal has been preferred primarily on three grounds. First is on the question of quantum that the compensation so awarded was not in terms with Section 168 of the Act of 1988 which stipulates that the compensation so awarded has to be just and reasonable. Mr. C. Phukan, the learned counsel appearing on behalf of the appellant submitted that in the instant case, the future prospect have been held at 40% without proving the income of the deceased by the claimants.

4. The second ground of objection taken is on the question of contributory negligence which was not taken into consideration by the learned Tribunal and thereby saddling the entire liability on the appellant Insurance Company.

5. The third ground of objection so taken is that the claimant No.1 having married off after the death of her husband, she would not be entitled to compensation.

6. The learned counsels appearing on behalf of both the respondents have jointly submitted that both the claimants are entitled to the compensation. The learned counsels for the respondents further submitted that the future prospect which have been granted at 40% is in terms with the judgment of the Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi and Others , (2017) 16 SCC 680 . The learned counsels further submitted by drawing the attention of this Court to the Constitution Bench judgment of the Supreme Court in the case of Pranay Sethi (supra) as well as the judgment of the Supreme Court in the case of Magma General Insurance Company Ltd. Vs. Nanu Ram and Others , (2018) 18 SCC 130 that in the instant case, the loss of consortium have been granted by the learned Tribunal without taking into consideration that the loss of consortium includes the loss of spousal consortium as well as loss of filial consortium and as such, the amount which have been awarded in the instant case is less.

7. The learned counsels for the respondents further submitted that in terms with the judgment of the Supreme Court in the case of Pranay Sethi (supra), there is an additional amount which is required to be paid i.e. on account of loss of estate which is Rs.15,000/- have not been paid. The learned counsel for the respondents further submitted that as the spousal consortium, filial consortium and the loss of estate are based upon the law declared by the Supreme Court under Article 141 of the Constitution, this Court may enhance the compensation as the same would come within the ambit of just and reasonable compensation.

8. In the backdrop of the above, let this Court now take note of the facts which led to the filing of the instant appeal.

9. On 05.11.2017 at around 7 PM, the husband of the claimant No.1 while riding a m

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