2025 Supreme(Online)(GUJ) 1491
HIGH COURT OF GUJARAT
MR. JUSTICE J. C. DOSHI, J
MUHAMMAD FAROOQ GANDHALAL – Appellant
Versus
MAGANBHAI JIVABHAI PATEL – Respondent
FIRST APPEAL NO. 1706 of 2007
Important Points
Subject
Motor Accident Claims - Compensation Claims
Act Referred
Headnote
(B) Compensation - Assessment of compensation must consider future loss of income and pain, shock, and suffering - The court enhanced the compensation for pain and suffering from Rs.15,000/- to Rs.1,00,000/- and awarded additional compensation of Rs.3,43,640/- with interest. (Paras 6, 9)
Facts of the case:
The appellant, aggrieved by the Tribunal's award, argued for enhanced compensation due to serious injuries and permanent disability resulting from a motor accident. The Tribunal had assessed income based on sales tax returns but did not account for future prospects. (Paras 1, 2)
Findings of Court:
The court found the Tribunal's assessment of pain and suffering inadequate and ruled that the claimant is entitled to enhanced compensation of Rs.3,43,640/- with interest. (Paras 9, 10)
Issues: The main issues were whether the Tribunal adequately assessed future loss of income and compensation for pain and suffering. (Paras 2, 6)
Ratio Decidendi: The court held that claimants in cases of permanent disability are entitled to compensation for future prospects, emphasizing that the assessment of compensation must reflect the claimant's ongoing needs and losses. (Paras 5, 6)
Result: The appeal is partly allowed.
| Table of Content |
|---|
| 1. claimant seeks enhanced compensation (Para 1) |
| 2. arguments for enhancement of compensation (Para 2) |
| 3. insurance company's counterarguments (Para 3) |
| 4. court reviews tribunal's findings (Para 4) |
| 5. discussion on future prospects (Para 5) |
| 6. court's ruling on compensation (Para 6 , 7) |
| 7. total compensation awarded (Para 8 , 9) |
| 8. order passed by the court (Para 10) |
ORAL ORDER
1. The present First Appeal, under Section 173 of Motor Vehicles Act , 1988, is preferred by the appellant – original claimant being aggrieved and dissatisfied with the judgment and award dated 03.05.2003 passed by the Motor Accident Claims Tribunal, Kheda at Nadiad in Motor Accident Claim Petition No.1167 of 1992.
2. In this appeal seeking enhancement of compensation, learned advocate for the appellant submitted that learned Tribunal having referred to turnover of the business available from sales tax return and considering overall aspects reach to conclusion that claimant was earning Rs.8000/- per month, however it has not assessed income for loss of future prospects and thereby committed serious error. It is further submitted that claimant has received serious injuries in left lef which has been shorten to some extent, which is visible from medical certificate and yet learner Tribunal assessed compensation meagerly under the head of pain, shock and suffering. Therefore it is submitted to enhance compensation and allow the appeal.
3. Learned advocates for the respective insurance companies submitted that learned Tribunal has assessed compensation on higher side adopting income of the claimant at Rs.8000/- per month in absence of documentary evidence in regard to income. Learned advocates further submitted that taking base of sales tax order to fix income of claimant is novel and unique method adopted by learned Tribunal. It is submitted that accident took place in the year 1992 and in absence of evidence amount of Rs.8000/- taken by the learned Tribunal is on higher side and and no compensation should be granted under loss of future prospects. Therefore, it is submitted to pass necessary orders.
4. I have heard learned advocates for the respective parties and perused impugned judgment as well as evidence on record. Noticeably, insurance company has not filed any appeal challenging assessment of income made by the learned Tribunal. Adoption of Rs.8000/- by learned Tribunal is based on turnover in sales tax order. Learned Tribunal has taken up 5% to 6% as commission on the assessment of sales tax made by the firm. On going through impugned judgment, in para 14, learned Tribunal has discussed this issue and believed turn over was upgraded or ascend after road accident and taking note of such aspect, learned Tribunal, even in case where left leg was shorten believed to take Rs.8000/- as income of the claimant. Finding of the learned Tribunal has not been challenged by the Insurance Company and accepted as it is. Leg of the claimant is shorten. Doctor has assessed physical disability of 69% but the claimant has not examined Doctor who has issued disability certificate. Learned Tribunal noted that sales turn over of the firm owned by the claimant ascend subsequent to road accident and taking note of such aspect, learned Tribunal has assessed functional disability of 69% and granted compensation for loss of future earning.
5. In the case of Sidram Versus Divisional Manager, United India Insurance Co.Ltd. [2023 (3) SCC 439] , the Hon'ble Apex Court in para 31 has held as under :-
"31. It is now a well settled position of law that even in cases of permanent disablement incurred as a result of a motor-accident, the claimant can seek, apart from compensation for future loss of income, amounts for future prospects as well. We have come across many orders of different tribunals and unfortunately affirmed by different High Courts, taking the view that the claimant is not entitled to compensation for future prospects in accident cases involving serious injuries