High Court of Gujarat Partly Allows Appeal Enhancing Compensation for Permanent Partial Disablement in Motor Accident Claim — Multiplier Corrected to 18 and Functional Disability Assessed at 15% Under Section 173 of Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The appellant, Ram Savraj Shakhtra, filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation for injuries sustained in a motor accident on 19.08.2013. While travelling on a motorcycle with his brother, the appellant was hit by a rashly driven auto-rickshaw van, resulting in serious injuries leading to permanent partial disablement. The Motor Accident Claims Tribunal partly allowed the claim, awarding Rs.1,54,000/- for future loss of income, Rs.20,000/- for pain, shock and suffering, and Rs.10,000/- for attendant charges. Aggrieved by the inadequacy of compensation, the appellant preferred an appeal under Section 173 of the Act. The High Court heard arguments from both sides. The appellant contended that the Tribunal applied an incorrect multiplier of 14 instead of 18 as per Sarla Verma v. DTC, and failed to assess functional disability correctly. The insurance company supported the Tribunal's award. The High Court analyzed the evidence and held that the multiplier should be 18 based on the appellant's age (38 years) and functional disability should be assessed at 15% considering the nature of injuries. The court recalculated future loss of income as Rs.3,000/- (notional income) x 12 x 18 x 15% = Rs.97,200/-. Additionally, the court enhanced compensation for pain, shock and suffering to Rs.50,000/- and attendant charges to Rs.25,000/-. The total compensation was increased from Rs.2,04,000/- to Rs.2,92,200/-. The appeal was partly allowed, with the insurance company directed to pay the enhanced amount with interest at 7.5% per annum from the date of petition.

Headnote

A) Motor Accident Compensation - Permanent Partial Disablement - Future Loss of Income - Motor Vehicles Act, 1988, Section 173 - The appellant sustained injuries resulting in permanent partial disablement. The Tribunal awarded Rs.1,54,000/- towards future loss of income using a multiplier of 14 and disability of 10%. The High Court held that the multiplier should be 18 as per Sarla Verma v. DTC, and functional disability should be assessed at 15% considering the nature of injuries. Compensation recalculated accordingly. (Paras 4-6)

B) Motor Accident Compensation - Pain, Shock and Suffering - Attendant Charges - Motor Vehicles Act, 1988, Section 173 - The Tribunal awarded Rs.20,000/- for pain, shock and suffering and Rs.10,000/- for attendant charges. The High Court enhanced these amounts to Rs.50,000/- and Rs.25,000/- respectively, considering the gravity of injuries and need for care. (Para 6)

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Issue of Consideration

Whether the Tribunal erred in calculating compensation for future loss of income by applying an incorrect multiplier and failing to assess functional disability properly?

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Final Decision

Appeal partly allowed. Compensation enhanced from Rs.2,04,000/- to Rs.2,92,200/-. Insurance company to pay enhanced amount with interest at 7.5% per annum from date of petition.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 173
  • Compensation for permanent partial disablement
  • Future loss of income
  • Multiplier
  • Functional disability
  • Notional income
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Case Details

2026 LawText (GUJ) (01) 215

R/First Appeal No. 1770 of 2022

2026-01-08

Hasmukh D. Suthar

Mr. Hiren M. Modi for Appellant, Ms. Krupali N. Bhatt for Respondent No. 3

Ram Savraj Shakhtra

Punshi Palu Charan & Ors.

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Nature of Litigation

Appeal against inadequate compensation in motor accident claim

Remedy Sought

Enhancement of compensation awarded by the Tribunal

Filing Reason

Dissatisfaction with the quantum of compensation awarded by the Tribunal

Previous Decisions

Tribunal partly allowed claim petition awarding Rs.1,54,000/- towards future loss of income, Rs.20,000/- towards pain, shock and suffering, and Rs.10,000/- towards attendant charges

Issues

Whether the Tribunal erred in applying multiplier of 14 instead of 18? Whether the functional disability was correctly assessed at 10%? Whether the compensation for pain, shock and suffering and attendant charges is adequate?

Submissions/Arguments

Appellant argued that multiplier should be 18 as per Sarla Verma v. DTC and functional disability should be higher. Insurance company supported the Tribunal's award.

Ratio Decidendi

In motor accident claims for permanent partial disablement, the multiplier should be as per Sarla Verma v. DTC based on the age of the claimant, and functional disability should be assessed considering the nature and extent of injuries. Compensation for pain, shock and suffering and attendant charges should be realistic and not nominal.

Judgment Excerpts

The appeal is filed on limited ground that the learned Tribunal has committed error by allowing Rs.1,54,000/- towards future loss of income... Considering the nature of injuries, functional disability is assessed at 15%.

Procedural History

Claim petition filed in 2013; Tribunal passed award on 04.04.2022; Appeal filed under Section 173 of Motor Vehicles Act, 1988 on 08.01.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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