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2025 Supreme(Raj) 2629

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR 
REKHA BORANA, J.
Oriental Insurance Company Ltd., Through Its Authorized Signatory Sh. Rajesh Kumar Goyal – Appellants
Versus 
Bhagu @ Bhaguta, S/o. Shri Hajari/gadari – Respondents
S.B. Civil Misc. Appeal No. 557 of 2023 Connected With S.B. Civil Misc. Appeal No. 1594 of 2022, S.B. Civil Misc. Appeal No. 1936 of 2022 
Decided On : 17-10-2025

Advocates Appeared:
For the Appellants : Mr. Devilal Vyas
For the Respondents: Mr. Sandeep Saruparia with Mr. Nikhil Ajmera Mr. Manas Ranchod Khatri Mr. Bhagirath Solanki for Mr. Zafar Khan

Compensation for motor accident victims must reflect dependency and income potential, with all claimants entitled to equitable consortium claims; historical income tax returns are a valid basis for income assessment.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Appeal against compensation award - The tribunal had awarded Rs.54,72,838/- to the dependents of the deceased, which the insurance company sought to quash, asserting inflated income calculations. (Paras 1.2, 8, 15)

(B) Income Determination - Historical income tax returns were used to assess the deceased's income. The court upheld this method, emphasizing that income generally increases over time, thus endorsing future earnings. (Paras 8, 15)

(C) Consortium Claims - The court clarified that all claimants, including parents and siblings, are eligible for consortium claims, thus modifying the tribunal's award. (Paras 18, 23)

Facts of the case:
The case arose from a fatal motorcycle accident involving the deceased, leading to multiple claims from family members, including parents and dependents. The tribunal granted substantial compensation based on the deceased’s income history.

Findings of Court:
The court modified the tribunal's award to allow for equitable distribution amongst all claimants while maintaining the award's total sum, reflecting the totality of loss and dependency.

Issues: The primary issue focused on the appropriateness of income calculations based on historical returns and rightful apportionment of compensation amongst claimants.

Ratio Decidendi: The court emphasized reliance on income tax returns for estimating loss of income, dismissing the insurance company's arguments about non-representative earnings from prior years. It ruled that dependency alone matters for compensation claims, not legal hierarchy.

Result: Appeals partly allowed; compensation modified and distributed fairly among claimants.

Table of Content
1. overview of the appeals and awarded compensation. (Para 2 , 3 , 4 , 5 , 6)
2. arguments regarding income assessment and claimant dependency. (Para 7 , 8 , 9 , 10 , 11)
3. court's observations on relying on retrospective income evidence. (Para 12 , 13 , 14 , 15)
4. definition and applicability of 'loss of dependency' in claims. (Para 16 , 18 , 19)
5. apportionment of awarded amounts among claimants. (Para 20 , 21)
6. final orders and directions for payment and distributions. (Para 22 , 23 , 24 , 25)

JUDGMENT :

REKHA BORANA, J.

1. The present appeals arise out of judgment and Award dated 27.06.2022 passed by Motor Accident Claims Tribunal No.2, Bhilwara in MAC Case Nos. 169/2019 (filed by the parents and siblings of the deceased) and 170/2019 (filed by the widow and children of the deceased).

1.2. S.B. Civil Misc. Appeal No. 1936/2022 has been preferred by the claimants (widow and children of the deceased) for enhancement of the compensation amount as awarded by the impugned Award, whereby an amount of Rs.54,72,838/- was awarded in favour of all the claimants.

1.3. S.B. Civil Misc. Appeal No. 1594/2022 has been preferred by the appellants (widow & children of the deceased) with a prayer that the apportionment of the award amount between the two sets of claimants in both claim cases be directed in terms of law.

1.4. S.B. Civil Misc. Appeal No. 557/2023 has been preferred by Oriental Insurance Company Limited with a prayer to quash and set aside the impugned judgment/Award, and that the appellant Insurance Company be exonerated from the liability to pay the compensation.

2. The brief facts giving rise to these appeals, as pleaded in the claim petitions, are that on 15.08.2018, Lehru Lal Gadri was proceeding from Brahmpuri to Mandal on his motorcycle bearing Registration No. RJ-06-EC-3824. At around 3:00 PM, in front of a brick factory near Haripura on Bhilwara Road, an Innova car bearing Registration No. RJ-06-UC-3456, being driven rashly and negligently, collided with his motorcycle. As a consequence, Lehru Lal suffered grievous injuries and was immediately taken to Mahatma Gandhi Hospital, Bhilwara where he was declared dead. In respect of the accident, FIR No. 0252/2018 came to be registered at Police Station Mandal, District Bhilwara.

3. The offending vehicle, on the date of accident, was duly insured with non claimant No.3 Insurance Company.

4. The learned Tribunal, after framing the issues and considering the oral and documentary evidence adduced by the parties, proceeded on to assess the annual income of the deceased at Rs.3,02,680/- on basis of the Income Tax Returns as exhibited, and after making necessary deduction and addition qua personal expenses and future prospects, awarded a total compensation of Rs.54,72,838/- in favour of the claimants. The breakup of the award is as under:

5. The Tribunal further directed that the claimants shall be entitled to interest @ 6% per annum from the date of filing of the claim petition i.e., 25.09.2017.

6. While deciding both the claim petitions jointly, learned Tribunal apportioned the aforesaid compensation amount between the two sets of claimants as under:

(i) In Claim Case No.169/2019

(a) Claimants – father Bhagu @ Bhaguta and mother Smt. Ghisi were awarded Rs. 4,00,000/- each to be kept in ‘Fixed Deposit’ for three years and Rs. 5,00,000/- each to be deposited in ‘Savings Account’ with a Nationalised Bank.

(b) Claimant siblings i.e. Geeta, Debi Lal and Sita were awarded Rs.40,000/- each under the head of ‘Loss of consortium’ to be deposited in ‘Savings Account’ with a Nationalised Bank.

(ii) In Claim Case No. 170/2019

(a) Claimant daughters Jyoti and Khushbu were awarded Rs.9,00,000/- each to be deposited in a ‘Fixed Deposit’ with a Nationalised Bank till they attain majority.

(b) Claimant wife Sanjiya was awarded Rs.10,00,000/- and Rs.4,00,000/- to be deposited as ‘Fixed Deposit’ with a Nationalised Bank for 5 years and 10 years respectively and the remaining award amount to be dep

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