Gujarat High Court Allows Appeal and Enhances Compensation for Deceased Diploma Engineer in Motor Accident Claim - Tribunal's Income Assessment and Conventional Heads Modified Following Pranay Sethi Principles. The court held that the deceased's income should be taken as Rs.15,000/- per month with 40% future prospects and conventional heads enhanced to Rs.1,70,000/-.

Appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award of the Motor Accident Claims Tribunal in a claim petition for compensation for death in a motor vehicle accident.

Enhancement of compensation awarded by the Tribunal from Rs.15,89,000/- to a higher amount.

The Tribunal assessed the deceased's income at Rs.10,000/- per month instead of Rs.15,000/- and awarded inadequate conventional heads.

The Tribunal awarded Rs.15,89,000/- with interest at 9% per annum in MACP No.684/2018 dated 13.09.2023.

Whether the Tribunal erred in assessing the monthly income of the deceased at Rs.10,000/- instead of Rs.15,000/-? Whether the Tribunal erred in not granting future prospects as per Pranay Sethi? Whether the Tribunal erred in awarding only Rs.77,000/- under conventional heads instead of the amount prescribed in Pranay Sethi?

Appellant argued that the deceased was a Diploma in Mechanical Engineer earning Rs.15,000/- per month, and the Tribunal should have considered this income. Also, conventional heads should be enhanced as per Pranay Sethi. Respondent No.3 (Insurance Company) argued that the Tribunal had rightly awarded adequate compensation and the appeal should be dismissed.

In motor accident claims, the income of the deceased should be assessed based on evidence, and future prospects at 40% should be added for self-employed or fixed salary persons below 40 years as per Pranay Sethi. Conventional heads should be awarded as per the standard amounts prescribed in Pranay Sethi with periodic escalation.

Feeling aggrieved by and dissatisfied with the judgment and award dated 13.09.2023 passed by learned Motor Accident Claims Tribunal (Aux.), Vadodara, in Motor Accident Claim Petition No.684/2018, the appellants –original claimants preferred present appeal under Section 173 of the Motor Vehicles Act, 1988. It is the case of the claimants that on 09.10.2018, while the deceased Gaurangkumar Arvindbhai Rohit was going on Motorcycle towards his company for attending his duty in night shift and when he reached near the place of accident, at that time, one Luxury Bus bearing No.GJ-06-AX-7699 came in full speed and in rash and negligent manner and dashed the motorcycle from behind. The appeal is filed on limited ground of quantum and no further issue qua liability or contributory negligence is challenged. Having considered the submissions made by learned counsel for the parties, it appears that the appeal is filed only on the aspect of quantum and liability is not challenged. In the case of Pranay Sethi (supra), the Hon'ble Supreme Court has held that for self-employed or fixed salary persons below 40 years, 40% future prospects should be added. Accordingly, the income of the deceased is taken as Rs.15,000/- per month. Adding 40% future prospects, the monthly income becomes Rs.21,000/-. Deducting 1/2 towards personal expenses, the monthly loss of dependency is Rs.10,500/-. Applying multiplier 18, the total loss of dependency is Rs.22,68,000/-. Adding conventional heads of Rs.1,70,000/-, the total compensation is Rs.24,38,000/-. However, the claimants have restricted their claim to Rs.22,70,000/-. Hence, the award is modified to Rs.22,70,000/-.

The claimants filed MACP No.684/2018 before the Motor Accident Claims Tribunal (Aux.), Vadodara, which awarded Rs.15,89,000/- on 13.09.2023. Aggrieved, the claimants filed the present First Appeal No.4272/2025 under Section 173 of the Motor Vehicles Act, 1988 before the High Court of Gujarat at Ahmedabad, which was heard and decided on 23.01.2026.

• Motor Vehicles Act, 1988: 173