High Court of Gujarat Allows Appeal in Motor Accident Claim Under Section 163-A MV Act — Reduces Negligence Deduction from 70% to 50%. Section 163-A is a no-fault provision where contributory negligence cannot be assessed; compensation must be awarded as per structured formula without deduction for negligence.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 17:41:27

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Case Note & Summary

The present appeal was filed by the original claimants, Kokilaben Vinubhai Parmar and another, under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 20/01/2016 passed by the Motor Accident Claims Tribunal (Main), District Court, Anand in MACP No.139 of 2012. The claim petition was filed under Section 163-A of the MV Act seeking compensation of Rs.4,31,900/- for the death of Vinubhai Parmar in a motor accident that occurred on 03/10/2012 at about 19:45 hrs on Kheda-Nadiad road near Raghvanaj cross. The deceased was driving vehicle GJ-23-S-8367 slowly on the left side when a tanker bearing registration GJ-6-Z-6384, driven rashly and negligently, dashed into the back of his vehicle, causing fatal injuries. The Tribunal partly allowed the claim petition, awarding Rs.1,03,650/- with 9% interest after deducting 70% on account of contributory negligence of the deceased. The claimants appealed contending that under Section 163-A, which is a no-fault liability provision, the Tribunal could not deduct any amount for contributory negligence. The High Court examined the nature of Section 163-A and held that it provides for compensation on a structured formula basis without requiring proof of fault. The Court found that the Tribunal erred in applying principles of contributory negligence and deducting 70% of the compensation. The Court set aside the deduction and recalculated the compensation as per the structured formula, awarding Rs.3,45,500/- with 9% interest from the date of filing of the claim petition till realization, along with proportionate costs. The appeal was allowed accordingly.

Headnote

A) Motor Accident Claims - Section 163-A MV Act - No-Fault Liability - Deduction for Contributory Negligence - The Tribunal deducted 70% of compensation on ground of deceased's contributory negligence, but Section 163-A is a no-fault provision where negligence of deceased cannot be assessed - Held that deduction for contributory negligence is not permissible under Section 163-A, and compensation must be awarded as per structured formula without such deduction (Paras 4-6).

B) Motor Accident Claims - Compensation - Structured Formula - Under Section 163-A, compensation is determined based on the structured formula in the Second Schedule, without regard to fault - The Court held that the Tribunal erred in applying principles of negligence and deducting 70%, and instead should have awarded the full amount as per the structured formula (Paras 5-6).

Issue of Consideration

Whether the Motor Accident Claims Tribunal was justified in deducting 70% of the compensation amount on account of contributory negligence of the deceased while awarding compensation under Section 163-A of the Motor Vehicles Act, 1988, which is a no-fault liability provision.

Final Decision

The High Court allowed the appeal, set aside the deduction of 70% on account of contributory negligence, and awarded compensation of Rs.3,45,500/- with interest at 9% per annum from the date of filing of the claim petition till its realization, along with proportionate costs. The impugned judgment and award was modified accordingly.

Law Points

Section 163-A of Motor Vehicles Act
1988 is a no-fault liability provision
contributory negligence cannot be assessed under it
structured formula for compensation
deduction for contributory negligence not permissible under Section 163-A

Case Details

2026 LawText (GUJ) (01) 375

R/FIRST APPEAL NO. 628 of 2016

2026-01-23

D. M. Vyas

Mr. Hiren M Modi for the appellants, Mr. Hamesh C Naidu for defendant no. 3

Kokilaben Vinubhai Parmar & Anr.

Mishrilal Ramnarayan Prajapati [Deleted] & Ors.

Nature of Litigation

Appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award of the Motor Accident Claims Tribunal partly allowing claim petition under Section 163-A.

Remedy Sought

The appellants (original claimants) sought enhancement of compensation awarded by the Tribunal, contending that the Tribunal erred in deducting 70% on account of contributory negligence of the deceased.

Filing Reason

The claimants were dissatisfied with the Tribunal's deduction of 70% compensation on the ground of contributory negligence of the deceased, which they argued was impermissible under Section 163-A of the MV Act.

Previous Decisions

The Motor Accident Claims Tribunal (Main), District Court, Anand in MACP No.139 of 2012 partly allowed the claim petition and awarded Rs.1,03,650/- with 9% interest after deducting 70% negligence of the deceased.

Issues

Whether the Tribunal was justified in deducting 70% of the compensation on account of contributory negligence of the deceased while awarding compensation under Section 163-A of the Motor Vehicles Act, 1988? What is the correct compensation payable under Section 163-A of the MV Act in the present case?

Submissions/Arguments

The appellants argued that Section 163-A of the MV Act is a no-fault liability provision and the Tribunal could not deduct any amount on account of contributory negligence of the deceased. The respondents did not appear or contest the appeal.

Ratio Decidendi

Section 163-A of the Motor Vehicles Act, 1988 provides for compensation on a no-fault basis, and the Tribunal cannot deduct any amount on account of contributory negligence of the deceased. The compensation must be awarded as per the structured formula under the Second Schedule without any deduction for negligence.

Judgment Excerpts

Section 163-A of the MV Act is a no-fault liability provision and the Tribunal could not have deducted any amount on account of contributory negligence of the deceased. The Tribunal has committed an error in deducting 70% of the amount on account of contributory negligence of the deceased.

Procedural History

The original claim petition (MACP No.139 of 2012) was filed under Section 163-A of the MV Act before the Motor Accident Claims Tribunal (Main), District Court, Anand. The Tribunal partly allowed the claim on 20/01/2016, awarding Rs.1,03,650/- after deducting 70% for contributory negligence. The claimants appealed to the High Court under Section 173 of the MV Act on 23/01/2026.