Case Note & Summary
The appellant, The New India Assurance Co. Ltd., challenged the judgment and award dated 09.05.2023 passed by the Motor Accident Claims Tribunal (Auxi.), Jetpur in MACP No.48/2020, which awarded Rs.25,95,000/- with 9% interest to the claimants (respondent nos.1 to 3) for the death of Kaushikbhai Pravinbhai Kathiriya in a motor vehicle accident. The accident occurred when the deceased was riding his motorcycle and was hit by a tanker (No.GJ-03-BT-8693) driven rashly and negligently. The Tribunal held the tanker driver solely negligent. The insurance company appealed on quantum, arguing that the compensation was exorbitant. The High Court found that the Tribunal had considered Rs.4000/- per month as commission income without any evidence, and failed to deduct professional tax and other allowances from the salary. The court reduced the compensation by modifying the income calculation and deductions, resulting in a lower award. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Future Loss of Dependency - The Tribunal erred in considering Rs.4000/- per month as commission income without any evidence, and failed to deduct professional tax and other allowances from salary. The High Court reduced the compensation accordingly. (Paras 4-6)
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was exorbitant and required reduction due to lack of evidence on commission income and improper deductions.
Final Decision
The appeal is partly allowed. The compensation awarded by the Tribunal is reduced. The modified award amount is to be paid with interest at 9% per annum from the date of claim petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation
- Future Loss of Dependency
- Future Prospects
- Deductions
- Professional Tax
- Commission Income
Case Details
R/First Appeal No. 4119 of 2023
Mr. Rathin P Raval for Appellant, Mr. Tushar L Sheth for Respondents 1-3
The New India Assurance Co. Ltd.
Pravinbhai Babubhai Kathiriya & Ors.
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Nature of Litigation
Appeal under Section 173 of the Motor Vehicles Act, 1988 challenging quantum of compensation in a motor accident claim.
Remedy Sought
Insurance company sought reduction of compensation awarded by the Tribunal.
Filing Reason
Insurance company challenged the award as exorbitant and based on presumption without evidence.
Previous Decisions
Motor Accident Claims Tribunal (Auxi.), Jetpur allowed MACP No.48/2020 and awarded Rs.25,95,000/- with 9% interest.
Issues
Whether the Tribunal erred in considering Rs.4000/- per month as commission income without evidence.
Whether the Tribunal failed to deduct professional tax and other allowances from salary.
Whether the compensation awarded was exorbitant and required reduction.
Submissions/Arguments
Learned advocate for appellant submitted that the Tribunal awarded compensation based on presumption, considering Rs.4000/- commission income without evidence, and failed to deduct professional tax and other allowances.
Respondents' advocate argued in support of the Tribunal's award.
Ratio Decidendi
In motor accident claims, compensation must be based on evidence. Commission income cannot be considered without proof, and proper deductions like professional tax must be made from salary. Future prospects addition must be as per settled law.
Judgment Excerpts
The learned Tribunal has passed the impugned judgment and award against the evidence produced on record and merely based on presumption has awarded the exorbitant high compensation.
Though there is no evidence as regards income from commission, the learned Tribunal has considered income of Rs.4000/- from commission.
Procedural History
The claim petition was filed under Section 166 of the MV Act before the Motor Accident Claims Tribunal (Auxi.), Jetpur, which allowed the petition on 09.05.2023. The insurance company filed the present appeal under Section 173 of the MV Act before the High Court of Gujarat.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166, Section 173
