Gujarat High Court Allows Appeal and Enhances Compensation in Motor Accident Claim for Death of 30-Year-Old Labourer — Applies Minimum Wages, Corrects Deduction and Adds Consortium to All Dependents. The Court held that in the absence of proof of income, minimum wages should be used; deduction for personal expenses should be 1/4th for four dependents; and each dependent is entitled to consortium.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 14:54:23

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Case Note & Summary

The present appeal arises from a judgment and award dated 03.10.2024 passed by the Motor Accident Claims Tribunal (Main), Dahod, in MACP No.299 of 2016. The appellants, being the widow, two minor children, and mother of the deceased Jigarbhai Manglabhai Damor, sought enhancement of compensation awarded for his death in a motor vehicle accident. The accident occurred on 07.11.2016 when the deceased was returning on his motorcycle after dropping his nephew and was hit by a tractor driven rashly and negligently by opponent no.1. A complaint was registered as I-CR No.64/2016 with Jesavada Police Station. The Tribunal partly allowed the claim petition, awarding compensation of Rs.5,70,000/- with interest at 7.5% per annum. The appellants challenged the award on three limited grounds: (i) the Tribunal assessed the deceased's income at Rs.2,500/- per month instead of the minimum wages prevalent in 2016; (ii) the Tribunal deducted 1/3rd for personal expenses instead of 1/4th; and (iii) the Tribunal granted consortium only to the widow and not to the other three claimants. The High Court, after hearing the appellants' counsel and perusing the record, found merit in all three grounds. The Court held that in the absence of proof of actual income, the income should be assessed based on the minimum wages for an unskilled labourer, which was Rs.9,000/- per month in 2016. Applying the multiplier of 17 (the deceased being 30 years old) and deducting 1/4th for personal expenses (since there were four dependents), the loss of dependency was recalculated as Rs.13,77,000/-. The Court also awarded Rs.40,000/- each to the widow (spousal consortium), the two minor children (parental consortium), and the mother (filial consortium), totaling Rs.1,60,000/-. Additionally, Rs.15,000/- was awarded for loss of estate and Rs.15,000/- for funeral expenses. The total compensation was enhanced to Rs.15,67,000/- from Rs.5,70,000/-, with interest at 7.5% per annum from the date of petition till realization. The respondents were held jointly and severally liable to pay the enhanced amount.

Headnote

A) Motor Accident Compensation - Assessment of Income - Minimum Wages - In the absence of proof of actual income, the income of a deceased labourer should be assessed based on the minimum wages prevalent at the time of the accident, not on a lower notional amount - Held that the Tribunal erred in assessing income at Rs.2,500/- per month instead of the minimum wage of Rs.9,000/- per month for an unskilled labourer in 2016 (Paras 6-7).

B) Motor Accident Compensation - Deduction for Personal Expenses - Number of Dependents - Where the deceased is married and has four dependents (widow, two minor children, and mother), the deduction for personal expenses should be 1/4th, not 1/3rd, as per the principle that for 4-6 dependents, deduction is 1/4th - Held that the Tribunal erred in deducting 1/3rd (Paras 8-9).

C) Motor Accident Compensation - Consortium - Spousal, Parental, and Filial Consortium - Each dependent is entitled to consortium: the widow to spousal consortium, the minor children to parental consortium, and the mother to filial consortium - Held that the Tribunal erred in granting consortium only to the widow and not to the other three claimants (Paras 10-11).

Issue of Consideration

Whether the Tribunal erred in assessing income of the deceased, deducting 1/3rd for personal expenses, and not granting consortium to all claimants.

Final Decision

The appeal is allowed. The judgment and award dated 03.10.2024 passed by the Motor Accident Claims Tribunal (Main), Dahod, in MACP No.299 of 2016 is modified. The total compensation is enhanced from Rs.5,70,000/- to Rs.15,67,000/-. The respondents are jointly and severally liable to pay the enhanced amount with interest at 7.5% per annum from the date of petition till realization. The enhanced amount shall be deposited within eight weeks. The apportionment and disbursement shall be as per the Tribunal's order.

Law Points

Motor Vehicles Act
1988
Section 173
Minimum wages for unskilled labourer
Deduction for personal expenses
Spousal consortium
Parental consortium
Filial consortium

Case Details

2026 LawText (GUJ) (01) 419

R/First Appeal No. 2611 of 2025

2026-01-29

Hasmukh D. Suthar

Nishit A Bhalodi

Lataben WD/o Jigarbhai Damor & Ors.

Rasulbhai Variyabhai Mavi & 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 (Main), Dahod, in MACP No.299 of 2016.

Remedy Sought

Enhancement of compensation awarded by the Tribunal for the death of Jigarbhai Manglabhai Damor in a motor vehicle accident.

Filing Reason

The appellants were aggrieved by the Tribunal's assessment of income at Rs.2,500/- per month, deduction of 1/3rd for personal expenses, and denial of consortium to all claimants.

Previous Decisions

The Tribunal partly allowed the claim petition and awarded Rs.5,70,000/- with interest at 7.5% per annum.

Issues

Whether the Tribunal erred in assessing the income of the deceased at Rs.2,500/- per month instead of the minimum wages prevalent in 2016? Whether the Tribunal erred in deducting 1/3rd for personal expenses instead of 1/4th? Whether the Tribunal erred in not granting consortium to all the appellants?

Submissions/Arguments

The learned advocate for the appellants submitted that the Tribunal ought to have considered the minimum wages of Rs.9,000/- per month for an unskilled labourer as per the Minimum Wages Act, 1948. The deduction for personal expenses should be 1/4th as the deceased had four dependents (widow, two minor children, and mother). Each appellant is entitled to consortium: the widow to spousal consortium, the minor children to parental consortium, and the mother to filial consortium.

Ratio Decidendi

In motor accident compensation claims, in the absence of proof of actual income, the income of the deceased should be assessed based on the minimum wages prevalent at the time of the accident. For a married deceased with four dependents, the deduction for personal expenses should be 1/4th. Each dependent is entitled to consortium: spousal consortium to the widow, parental consortium to minor children, and filial consortium to the mother.

Judgment Excerpts

the learned Tribunal has not considered minimum wages of prevalent time and erred in deducting 1/3 for personal expenses of the deceased and also not considered consortium to each appellants. the income of the deceased is required to be considered as per the minimum wages prevalent at the time of accident i.e. Rs.9,000/- per month. the deduction towards personal expenses should be 1/4th and not 1/3rd. the appellants are entitled to consortium of Rs.40,000/- each.

Procedural History

The appellants filed MACP No.299 of 2016 before the Motor Accident Claims Tribunal (Main), Dahod, which was partly allowed on 03.10.2024 awarding Rs.5,70,000/-. Aggrieved, the appellants filed the present First Appeal No.2611 of 2025 under Section 173 of the Motor Vehicles Act, 1988 before the High Court of Gujarat at Ahmedabad. The appeal was heard on 29.01.2026 and allowed.