Gujarat High Court Partly Allows Appeal in Motor Accident Claim for Minor Deceased. Notional Income of Rs. 30,000 Per Annum Upheld, but Deduction for Personal Expenses Set Aside.

High Court: Gujarat High Court
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Case Note & Summary

The appellants, original claimants, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 31.07.2023 passed by the Motor Accident Claims Tribunal (Main), Arvalli at Modasa, in MAC Petition No. 199 of 2018. The claim arose from a fatal accident on 03.08.2017, when the deceased, an 11-year-old girl, was hit by a bus bearing registration No. GJ-18-Z-944 driven rashly and negligently by opponent no.1. The bus tyre rolled over her, causing fatal injuries. The Tribunal partly allowed the claim petition, awarding compensation. The appeal was limited to the quantum of compensation, specifically challenging the Tribunal's assessment of the deceased's notional income at Rs. 30,000 per annum and the deduction of 1/2 towards personal expenses. The appellants argued that the notional income should be based on minimum wages for 2017 and that no deduction should be made for personal expenses as the deceased was a minor dependent on her parents. The High Court, after hearing the appellants' counsel and perusing the record, held that the notional income of Rs. 30,000 per annum was correctly assessed as per the Second Schedule of the Motor Vehicles Act, 1988, and no interference was warranted. However, the Court found that the Tribunal erred in deducting 1/2 towards personal expenses, as the deceased was a non-earning minor dependent on her parents. The deduction was set aside, and the compensation was enhanced accordingly. The appeal was partly allowed.

Headnote

A) Motor Accident Compensation - Minor Deceased - Notional Income - Assessment - The Tribunal assessed notional income of an 11-year-old deceased at Rs. 30,000 per annum, which was challenged as inadequate - The High Court held that the notional income was correctly assessed as per the Second Schedule of the Motor Vehicles Act, 1988, and no interference was warranted (Para 5).

B) Motor Accident Compensation - Minor Deceased - Deduction for Personal Expenses - The Tribunal deducted 1/2 towards personal expenses of the deceased minor - The High Court held that for a non-earning minor dependent on parents, no deduction should be made for personal expenses - The deduction was set aside (Para 6).

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Issue of Consideration

Whether the Tribunal erred in assessing the notional income of the deceased minor and in deducting 1/2 towards personal expenses.

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Final Decision

The appeal is partly allowed. The notional income of Rs. 30,000 per annum is upheld. The deduction of 1/2 towards personal expenses is set aside. The compensation is enhanced accordingly. The award of the Tribunal is modified to the extent indicated.

Law Points

  • Compensation for minor deceased
  • notional income
  • deduction for personal expenses
  • Motor Vehicles Act
  • 1988 Section 173
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Case Details

2026 LawText (GUJ) (01) 199

R/First Appeal No. 1298 of 2025

2026-01-08

Hasmukh D. Suthar

Mr. Aditya B. Gandhi, Ms. Shreya M. Soni

Goswami Alpeshgiri Somgiri & Anr.

Pravinbhai Ramanbhai Patel & Anr.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation for death of a minor in a motor accident.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The Tribunal assessed notional income of the deceased minor at Rs. 30,000 per annum and deducted 1/2 towards personal expenses, which the appellants challenged as inadequate.

Previous Decisions

The Motor Accident Claims Tribunal (Main), Arvalli at Modasa, partly allowed MAC Petition No. 199 of 2018 on 31.07.2023.

Issues

Whether the Tribunal erred in assessing the notional income of the deceased minor at Rs. 30,000 per annum instead of minimum wages? Whether the Tribunal erred in deducting 1/2 towards personal expenses of the deceased minor?

Submissions/Arguments

The appellants argued that the notional income should be based on minimum wages for the year 2017. The appellants argued that no deduction should be made for personal expenses as the deceased was a minor dependent on her parents.

Ratio Decidendi

For a non-earning minor deceased dependent on parents, no deduction should be made towards personal expenses. The notional income of Rs. 30,000 per annum for a minor is in accordance with the Second Schedule of the Motor Vehicles Act, 1988.

Judgment Excerpts

The learned Tribunal has considered notional income as she was 11 years old at the time of accident as per the rate of minimum wages of the year 2017 and committed error by considering notional income as Rs.30,000/- per annum... The learned Tribunal has also committed error in deducting ½ amount despite the deceased was minor and was a non-earning member and was depended on parents for her personal expenses.

Procedural History

The Motor Accident Claims Tribunal (Main), Arvalli at Modasa, partly allowed MAC Petition No. 199 of 2018 on 31.07.2023. Aggrieved, the appellants filed the present appeal under Section 173 of the Motor Vehicles Act, 1988.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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High Court Gujarat High Court Partly Allows Appeal in Motor Accident Claim for Minor Deceased. Notional Income of Rs. 30,000 Per Annum Upheld, but Deduction for Personal Expenses Set Aside.
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