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2025 Supreme(Online)(Guj) 13456

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hasmukh D. Suthar, J
USHABEN RILESHKUMAR CHADADE ( LHS OF VAIBHAV RILESHKUMAR CHADADE ) – Appellant
Versus
SHANKARLAL HAMIRBHAI HUMBAL – Respondent
R/FIRST APPEAL NO. 2836 of 2025



Advocates:
For the Appellants/Petitioners: Hiren M Modi
For the Respondents: E. Shailaja

Interest is payable on the entire compensation amount in motor accident claims, including the component for future prospects, as claimants should not be penalized for delays in the judicial process.

Headnote:The appeal was filed under Section 173 of the Motor Vehicles Act, 1881, challenging a Tribunal award that granted compensation for a fatal motor accident but denied interest on the portion allocated toward future prospects. The court examined the calculation of compensation, including the assessment of monthly income, the 40% escalation for future prospects, and the application of the multiplier based on the deceased's age. The central issue was whether interest should be awarded on the amount designated for future prospects. The court reasoned that judicial delays cannot be cast upon the claimant and that interest must run from the date of filing the claim petition to the date of payment, noting that there is no legal bar preventing insurance companies from settling such claims provisionally. present First Appeal is partly allowed.

ORAL ORDER

[1.0] Feeling aggrieved and dissatisfied with the impugned judgment and award dated 12.03.2025 passed by the learned Motor Accident Claims Tribunal (Auxi.), at Anjar, District Kachchh (which shall hereinafter be referred to as "the Tribunal" for short) in Motor Accident Claim Petition No.16 of 2021, the appellant herein – original claimant has filed present First Appeal under Section 173 of the Motor Vehicles Act, 1881 (for short “MV Act”), whereby the learned Tribunal has partly allowed the claim petition filed by the present appellant and awarded compensation of Rs.16,57,500/- however, did not award interest on Rs.4,32,000/- i.e. future prospects.

[2.0] Heard learned Advocate Mr. Hiren Modi for the appellant – original claimant and learned Advocate Ms. E. Shailaja appearing for respondent No.2 – insurance company of offending vehicle. Perused the original record and proceedings.

[3.0] It is the case of the appellant that on 27.11.2019, while the deceased son of claimant was returning from his job from Gandhidham to Anjar on his motorcycle No.GJ-12-BL-8949, on Truck No.GJ-12-AY-4302 came at the place of accident with full speed in rash and negligent manner and coming on wrong side dashed with the motorcycle of the deceased pursuant to which the deceased having sustained serious injuries died. Therefore, the appellant – original claimant – mother of deceased filed MAC Petition seeking compensation wherein the learned Tribunal after appreciating the evidence produced on record was pleased to partly allow the claim petition by awarding compensation of Rs.16,57,500/- however, did not award interest on Rs.4,32,000/- i.e. future prospects. Being aggrieved with the said exclusion of interest in the impugned judgment and award, the present appellant – original claimant has filed the present appeal.

[4.0] Learned Advocate Mr. Hiren Modi appearing for the appellant – original claimant has assailed the impugned judgment and award only to the extent it has not awarded interest on the amount of future prospects. He has further submitted that learned Tribunal ought to have awarded interest at the rate of 9% per annum instead of 6% and that too not on the amount towards future prospects. Hence, he has requested to allow the present First Appeal.

[5.0] Per contra, learned advocate Ms. E. Shailaja for the respondent – insurance company of the offending vehicle has opposed the present appeal by submitting that the learned Tribunal has not committed any error in not awarding the interest on the future prospects of the deceased. She has further opposed the claim of the appellant to award interest on future prospects by submitting that compensation under the head of future prospects in any event is an amount received in advance, normally inuring to the benefit of the claimants only in future and therefore, she has requested to dismiss the present appeal.

[6.0] Since present appeal is filed raising limited issue of non-grant of interest on the awarded amount of future prospects, present appeal is considered on the said limited issue only.

[7.0] Having heard the learned Advocates for the respective parties and perusing the record as well as the impugned judgment and award, it appears that the learned Tribunal after considering the evidence on record i.e. afÏdavit of claimant at Exh.24, Aadhar Card (Exh.39), school leaving certificate (Exh.47) of the deceased has considered the age of the deceased at 19 years at the time of accident. Further, the said witness has stated that deceased was doing service at Shri Shipping Services, Gandhidham as Supervisor and was earning Rs.18,000/- per month for which claimant has produced the salary slip of the deceased for the months of August, 2019, September, 2019, October, 2019 however, as no witness was examined to prove the factum of income of the deceased, the claimant stated in her evidence that some amount was given in cash and some was deposited in bank account however,

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