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2026 Supreme(Guj) 1197

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
NISHA M. THAKORE, J.
Rajeshbhai Gordhanbhai Baraiya – Appellant 
Versus
Firozkhan Usmanbhai Pathan And Ors. – Respondents 
R/First Appeal No. 1681 Of 2015
Decided On : 10-04-2026

Advocates Appeared:
For The Appellant : Mr Shushil R Shukla
For The Respondent: Mr Vibhuti Nanavati

Tribunals must independently assess permanent functional disability and provide holistic, equitable compensation, disregarding procedural consent memoranda that inadequately reflect the severity of life-altering, permanent injuries sustained by minors.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Injury claim - Permanent disability - Quantum of compensation - Amputation of lower limb - Tribunal wrongly accepted consent memorandum to assess functional disability - Obligation of tribunal to assess dependency and non-pecuniary damages independently - Principles of just and fair compensation for minor claimants. (Paras 6, 8, 9)

(B) Compensation for personal injury - Principles for determining functional disability - Medical disability percentage is not necessarily economic loss - Requirement to apply yardstick of statutory provisions for amputations - Independent evaluation of medical papers required by tribunal - Need to account for future medical expenses, loss of amenities, and marriage prospects in lifelong injury cases. (Paras 8, 11, 12, 13)

Facts of the case:
An appeal filed by a minor claimant dissatisfied with the amount awarded for injuries sustained in a road accident. The claimant suffered the amputation of a lower limb. The initial compensation was limited and based on an evidentiary error regarding the assessment of the permanent disability percentage.

Findings of Court:
The court set aside the tribunal's assessment by re-evaluating the functional disability, applying appropriate wage standards for a minor, and significantly enhancing compensation for non-pecuniary damages including pain, suffering, future medical expenses, and loss of future prospects.

Issues: Whether the tribunal's reliance on a consent memorandum regarding disability assessment was justified and whether the quantum of compensation awarded was fair and just considering the life-altering nature of the injuries sustained by the claimant.

Ratio Decidendi: Tribunals are mandated to arrive at a just and fair compensation irrespective of procedural shortcuts like consent memoranda if such agreements fail to address medical evidence adequately. For minor claimants with permanent amputations, holistic restitution, including non-pecuniary damages and future medical aid, is essential to ensure a dignified future life.

Result: Appeal allowed. Compensation enhanced to Rs. 26,48,120 with interest.

Table of Content
1. procedural status and background of the motor accident claim appeal. (Para 1 , 2)
2. contentions regarding determination of disability and quantum of compensation. (Para 3 , 4 , 5)
3. judicial methodology for assessing permanent disability and rejecting improper procedural concessions. (Para 6 , 7 , 8 , 9)
4. computation of compensation based on future prospects, non-pecuniary damages, and future medical expenses. (Para 10 , 11 , 12 , 13)
5. final award of compensation and instructions for disbursement and recovery. (Para 14 , 15)

JUDGMENT :

NISHA M. THAKORE, J.

1. Heard Ms. Sini Shukla, learned advocate with Mr. Shushil Shukla, learned advocate for the appellant. Ms. Mausami Nanavati, learned advocate has appeared on behalf of Mr. Vibhuti Nanavati, learned advocate for the respondent no.3- Insurance Company. Despite the service of notice of rule upon the respondent nos. 1 and 2 who are driver and owner of the offending vehicle, they have chosen not to enter appearance or contest the present appeal. With the able assistance of the learned advocates on record, the appeal is finally heard. Considering the grounds raised in the appeal and submissions made by the learned advocate for the original claimant, this Court vide order dated 15.09.2015 had admitted the appeal.

2. The present appeal under Section 173 of the Motor Vehicle Act,1988 (hereinafter referred to as the “Act, 1988”) at the instance of the original claimant being aggrieved and dissatisfied with the judgment and award dated 20th February 2014 passed by the Motor Accident Claim Tribunal (Main) Kheda at Nadiad in MACP No.89 of 2007. By the said judgment and award, the Tribunal has though partly allowed the claim petition preferred by the original claimant under Section 166 of the Act, 1988 holding him entitled to seek recovery of compensation of Rs.1,32,500/- with interest at the rate of 7.5% from the date of filing of claim petition till its actual realization from the original opponents No.1 to 3, jointly and severally, however has not entertained the claim of entire compensation of Rs.3,50,000/-. Hence, the present appeal, praying for enhancement of additional amount of compensation of Rs.2 lakhs with proportionate cost and interest.

3. Learned advocate appearing for the appellant has assailed the impugned judgment and award mainly on the ground of quantum of compensation by submitting that the Tribunal committed grave error in determining the notional income of the injured claimant who was aged 13 years at the time of accident. Inviting my attention to the findings and reasons assigned by the Tribunal, learned advocate has submitted that even in cases of minor injured claimant, the law as settled by the various judgments of the Hon’ble Supreme Court is to follow the yardstick of minimum wages for the purpose of determination of just and fair amount of compensation. The reliance was placed on the recent judgment of the Hon’ble Supreme Court in the case of Hitesh Nanjibhai Patel versus Motibhai Nanjibhai Rabari reported in 2025 (4) GLH 470. My attention was invited to the facts of the case involved, it was pointed out that it was a case of eight year old child having suffered amputation of left lower limb along with life altering injuries sustained on the head and left leg which had caused brain hemorrhage. The disability certificate and other medical documents were taken into consideration by the High Court whereby the permanent functional disability of the claimant was quantified as 90%. The Hon’ble Supreme Court in the appeal preferred by the original claimant had confirmed the aforesaid permanent functional disability of 90% in the facts of the case by observing that such injuries had a direct co-relation and the consequent loss of permanent functional disability suffered by the claimant. Learned advocate had therefore submitted that in the present case also the claimant being an injured minor having suffered amputation of left leg below knee and cons

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