High Court of Gujarat Allows Appeal in Motor Accident Claim Case Due to Erroneous Contributory Negligence Finding. Deceased Driver's Risk Statutorily Covered Under Section 147 of Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The appeal arises from a motor accident claim where the deceased, Wasim Maheboobbhai Bhayani, was driving a luxury bus (GJ-03-W-9841) on 04.12.2017 when another luxury bus (GJ-14-X-3222) driven rashly and negligently collided with his bus, causing fatal injuries. The claimants, being the legal heirs of the deceased, filed MACP No.14/2018 before the Motor Accident Claims Tribunal (Auxi.), Anand, seeking compensation of Rs.20 lakh. The Tribunal partly allowed the claim, awarding Rs.25,18,000/- as total compensation but deducting 50% for contributory negligence of the deceased, resulting in a net award of Rs.12,59,000/- with 9% interest. The claimants appealed under Section 173 of the Motor Vehicles Act, 1988. The High Court considered the evidence and found that the Tribunal erred in attributing contributory negligence to the deceased without any evidence; the accident was solely due to the other driver's rashness. The Court also noted that the deceased was an employee driver of respondent No.3, and his risk was statutorily covered under Section 147 of the MV Act, making the insurance company (respondent No.4) liable. Additionally, the Tribunal failed to add 40% future prospects to the deceased's income as per legal precedents. The High Court allowed the appeal, set aside the finding of contributory negligence, and directed the insurance company to pay the full compensation of Rs.25,18,000/- with 9% interest from the date of the claim petition.

Headnote

A) Motor Accident Claims - Contributory Negligence - Deceased Driver - The Tribunal erroneously attributed 50% contributory negligence to the deceased driver without any evidence of his negligence; the accident was caused solely by the rash driving of the other bus driver. Held that the finding of contributory negligence is perverse and set aside (Paras 5-6).

B) Motor Vehicle Insurance - Statutory Coverage - Section 147 Motor Vehicles Act, 1988 - The deceased was a driver employed by respondent No.3, and his risk was statutorily covered under Section 147 of the MV Act. Held that the insurance company (respondent No.4) is liable to pay the entire compensation amount (Para 6).

C) Motor Accident Claims - Compensation Enhancement - Future Prospects - The Tribunal failed to add 40% future prospects to the deceased's income as per settled law. Held that the compensation amount be recalculated with 40% addition for future prospects (Para 6).

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Issue of Consideration

Whether the learned Tribunal erred in attributing 50% contributory negligence to the deceased driver and whether the insurance company is liable to pay compensation under Section 147 of the Motor Vehicles Act, 1988.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 31.03.2022 is modified. The finding of 50% contributory negligence is set aside. The respondent No.4 - insurance company is directed to pay the entire compensation of Rs.25,18,000/- with interest at 9% per annum from the date of the claim petition to the appellants.

Law Points

  • Contributory negligence cannot be attributed to deceased driver without evidence
  • Insurance company liable under Section 147 MV Act for employee driver
  • Compensation computation under Section 166 MV Act
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Case Details

2026 LawText (GUJ) (02) 756

R/First Appeal No. 4237 of 2022

2026-02-24

Hasmukh D. Suthar

2026:GUJHC:14768

Mr. Nishit A Bhalodi (for appellants), Ms. Masumi V Nanavaty (for defendant No.4), Mr. Vibhuti Nanavati (for defendant No.2)

Bhayani Sabinaben Vasimbhai & Ors.

Harjibhai Parsottambhai Dobariya & Ors.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of the Motor Vehicles Act, 1988.

Remedy Sought

Appellants (original claimants) sought enhancement of compensation and setting aside of 50% contributory negligence deduction.

Filing Reason

The Tribunal erroneously attributed 50% contributory negligence to the deceased driver and failed to add future prospects.

Previous Decisions

The learned Tribunal partly allowed the claim petition and awarded Rs.12,59,000/- after deducting 50% for contributory negligence.

Issues

Whether the finding of 50% contributory negligence against the deceased driver is sustainable? Whether the insurance company is liable to pay compensation under Section 147 of the MV Act? Whether the Tribunal erred in not adding 40% future prospects to the deceased's income?

Submissions/Arguments

Appellants argued that the Tribunal failed to appreciate evidence and that the deceased's risk was statutorily covered under Section 147 of the MV Act, making the insurance company liable. Respondents did not appear or contest the appeal.

Ratio Decidendi

The deceased driver cannot be held contributorily negligent without evidence; the risk of an employee driver is statutorily covered under Section 147 of the MV Act; future prospects must be added to income as per settled law.

Judgment Excerpts

The learned Tribunal has failed to appreciate the evidence and impugned judgment and award is contrary to law. The deceased was engaged as a driver by respondent No.3 and risk of the deceased is statutorily covered under the purview of section 147 of the MV Act.

Procedural History

The appellants filed MACP No.14/2018 before the Motor Accident Claims Tribunal (Auxi.), Anand, which was partly allowed on 31.03.2022. Aggrieved, the appellants filed the present First Appeal under Section 173 of the MV Act before the High Court of Gujarat.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 173, Section 147
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