Gujarat High Court Allows Appeal for Enhanced Compensation in Motor Accident Case Due to Low Notional Income and Omission of Future Prospects. Claimant with 28% Disability Entitled to Rs.12,000 Notional Income and 40% Future Prospects Under Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 17:40:51

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Case Note & Summary

The appellant, Sonalben Jashwantsinh Sodhaparmar, was the original claimant in a motor accident claim petition arising from an accident on 02.01.2023. She was travelling in a rickshaw bearing registration No. GJ-23-Z-8092 owned by respondent No.1 when, due to rash and negligent driving, the rickshaw turned turtle, causing her serious injuries. She filed MACP No.128/2023 before the Motor Accident Claims Tribunal (Main), Nadiad, seeking compensation of Rs.5,00,000. The Tribunal held the driver solely negligent and awarded Rs.6,69,900. Dissatisfied with the quantum, the claimant appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement. The appellant argued that the Tribunal erred in assessing her notional income at Rs.7,500 per month instead of the minimum wage of Rs.12,000 prevailing in 2023, and failed to grant future prospects despite her 28% disability. The respondent insurance company contended that the Tribunal correctly assessed income in the absence of proof. The High Court, per Justice Hasmukh D. Suthar, allowed the appeal, holding that the notional income should be Rs.12,000 per month and that 40% future prospects should be added. The court recalculated the compensation, resulting in an enhanced award of Rs.10,08,000 with 7.5% interest from the date of petition.

Headnote

A) Motor Accident Compensation - Notional Income - Assessment of Income in Absence of Proof - Where claimant fails to prove actual income, Tribunal may assess notional income based on minimum wages prevailing at the time of accident - Held that notional income of Rs.12,000 per month ought to have been considered instead of Rs.7,500 (Paras 5-6).

B) Motor Accident Compensation - Future Prospects - Disability - Claimant with 28% disability is entitled to addition towards future prospects as per settled law - Held that 40% addition towards future prospects is warranted (Paras 5-6).

Issue of Consideration

Whether the Tribunal erred in assessing the claimant's notional income at Rs.7,500 per month and in not granting future prospects despite 28% disability?

Final Decision

The appeal is allowed. The impugned judgment and award dated 14.06.2024 is modified. The appellant is entitled to total compensation of Rs.10,08,000 with interest at 7.5% per annum from the date of petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.

Law Points

Notional income assessment for self-employed persons
future prospects for disability cases
compensation enhancement under Motor Vehicles Act

Case Details

2026:GUJHC:6223

R/First Appeal No. 4307 of 2025

2026-01-23

Hasmukh D. Suthar

2026:GUJHC:6223

Hiren M Modi, Krunal R Saksena

Sonalben Jashwantsinh Sodhaparmar

Bharatbhai Bhurabhai Patel & Anr.

Nature of Litigation

First Appeal under Section 173 of the Motor Vehicles Act, 1988 challenging the quantum of compensation awarded by the Motor Accident Claims Tribunal.

Remedy Sought

Appellant sought enhancement of compensation from Rs.6,69,900 to a higher amount.

Filing Reason

Appellant was dissatisfied with the Tribunal's assessment of notional income at Rs.7,500 per month and non-grant of future prospects despite 28% disability.

Previous Decisions

The Motor Accident Claims Tribunal (Main), Nadiad, by judgment and award dated 14.06.2024 in MACP No.128/2023, awarded Rs.6,69,900 to the claimant.

Issues

Whether the Tribunal erred in assessing the claimant's notional income at Rs.7,500 per month instead of the minimum wage of Rs.12,000? Whether the claimant is entitled to future prospects despite having 28% disability?

Submissions/Arguments

Appellant argued that the Tribunal should have considered minimum wages of Rs.12,000 per month and granted future prospects. Respondent insurance company argued that the Tribunal correctly assessed income in absence of proof and no error was committed.

Ratio Decidendi

In the absence of proof of income, the notional income should be assessed based on minimum wages prevailing at the time of accident. A claimant with disability is entitled to future prospects as per settled law.

Judgment Excerpts

the learned Tribunal has committed an error in not considering the minimum wages of Rs.12,000/- per month prevailing at the time of accident i.e. in the year 2023 and considered only Rs.7500/- the learned Tribunal has also not considered the future prospects of the claimant though the claimant had sustained 28% disability

Procedural History

The appellant filed MACP No.128/2023 before the Motor Accident Claims Tribunal (Main), Nadiad, which awarded Rs.6,69,900 on 14.06.2024. Aggrieved, the appellant filed the present First Appeal under Section 173 of the MV Act on 23.01.2026.