High Court of Gujarat Allows Appeal in Motor Accident Claim — Compensation Enhanced for Deceased Pillion Rider. Income of Deceased Auto Rickshaw Driver Reassessed at Rs. 4,500 per Month Under Section 173 of Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 14:55:28

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Case Note & Summary

The present appeal was filed by the legal heirs of the deceased Kantaben Jayantibhai Gamit under Section 173 of the Motor Vehicles Act, 1988, aggrieved by the judgment and award dated 12.02.2014 passed by the Motor Accident Claims Tribunal, Tapi at Vyara in MACP No.139 of 2006. The deceased, a pillion rider on a motorcycle, died in a collision with a truck driven rashly by respondent No. 1. The Tribunal partly allowed the claim petition and awarded Rs. 3,36,000/- with 8% interest. The appellants sought enhancement of compensation. The High Court, after hearing the parties, enhanced the monthly income of the deceased from Rs. 3,000/- to Rs. 4,500/- based on evidence that she was an auto rickshaw driver. Applying a multiplier of 15 and deducting 1/3rd for personal expenses, the total compensation was recalculated as Rs. 5,40,000/-. The court also awarded Rs. 15,000/- for loss of estate and Rs. 15,000/- for funeral expenses, totaling Rs. 5,70,000/-. The enhanced amount was directed to be paid with 8% interest from the date of the claim petition. The appeal was partly allowed.

Headnote

A) Motor Accident Compensation - Income Assessment - Self-Employed Deceased - The Tribunal assessed the deceased's income at Rs. 3,000/- per month based on notional income, but the High Court held that the deceased was an auto rickshaw driver earning Rs. 4,500/- per month as per the claim petition and evidence, and thus enhanced the income to Rs. 4,500/- per month. (Paras 7-9)

B) Motor Accident Compensation - Multiplier - Age of Deceased - The Tribunal applied multiplier of 15 based on the age of the deceased (45 years) as per Sarla Verma v. DTC, (2009) 6 SCC 121. The High Court upheld the multiplier of 15. (Para 10)

C) Motor Accident Compensation - Negligence - Contributory Negligence - The Tribunal found that the accident occurred solely due to the rash and negligent driving of the truck driver (respondent No. 1), and there was no contributory negligence on the part of the motorcycle rider. The High Court affirmed this finding. (Para 11)

D) Motor Accident Compensation - Computation - Deductions - The Tribunal deducted 1/3rd towards personal expenses of the deceased. The High Court upheld this deduction. (Para 12)

E) Motor Accident Compensation - Interest Rate - The Tribunal awarded interest at 8% per annum. The High Court maintained this rate. (Para 13)

Issue of Consideration

Whether the compensation awarded by the Tribunal was just and proper, particularly regarding the assessment of the deceased's income and the application of the multiplier.

Final Decision

The appeal is partly allowed. The compensation is enhanced from Rs. 3,36,000/- to Rs. 5,70,000/-. The respondents are directed to pay the enhanced amount with interest at 8% per annum from the date of the claim petition till realization.

Law Points

Motor accident compensation
income assessment for self-employed
multiplier method
contributory negligence
Motor Vehicles Act
1988 Sections 166
173

Case Details

2026:GUJHC:7142

R/First Appeal No. 1342 of 2016

2026-01-29

D. M. Vyas

2026:GUJHC:7142

Mr. Hiren M. Modi for the appellant, Mr. Tanmay B. Karia for the defendant No. 3

Legal Heirs of Deceased Kantaben Jayantibhai Gamit & Anr.

Arjamkhan Baghekhan & 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.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellants were aggrieved by the inadequate compensation awarded by the Tribunal.

Previous Decisions

The Tribunal partly allowed the claim petition and awarded Rs. 3,36,000/- with 8% interest.

Issues

Whether the compensation awarded by the Tribunal was just and proper? Whether the income of the deceased was correctly assessed? Whether the multiplier applied was correct?

Submissions/Arguments

The appellant argued that the deceased was an auto rickshaw driver earning Rs. 4,500/- per month, but the Tribunal assessed her income at Rs. 3,000/- per month. The appellant submitted that the compensation awarded was inadequate and should be enhanced.

Ratio Decidendi

The income of the deceased should be assessed based on the evidence on record, and the multiplier should be applied as per the age of the deceased as per Sarla Verma v. DTC. The Tribunal's assessment of income was notional and not based on evidence, hence enhanced.

Judgment Excerpts

The present appeal is filed by the original claimants under Section 173 of the Motor Vehicles Act, 1988 being aggrieved and dissatisfied with the impugned judgment and award dated 12.02.2014 passed by the Motor Accident Claims Tribunal, Tapi at Vyara in MACP No.139 of 2006. Learned Advocate Mr. Hiren M. Modi appearing for the appellant, while assailing the impugned judgment and award, has submitted that the deceased was owning an auto rickshaw and was earning the income by...

Procedural History

The claim petition was filed before the Motor Accident Claims Tribunal, Tapi at Vyara in MACP No.139 of 2006. The Tribunal partly allowed the claim on 12.02.2014. The appellants filed the present appeal under Section 173 of the Motor Vehicles Act, 1988, which was admitted on 05.08.2016. The High Court heard the appeal and delivered judgment on 29.01.2026.