High Court of Gujarat Enhances Compensation for Death of Minor in Motor Accident — Tribunal's Award Under Section 164 MV Act Inadequate. Section 164 of Motor Vehicles Act, 1988 mandates minimum compensation of Rs.5,00,000 for death, Tribunal's award of Rs.2,04,500 set aside.

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

The appellant, Liliben Ajmalbhai Thakor, filed a First Appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 14.12.2023 passed by the Motor Accident Claims Tribunal (Main), District Patan in MACP No.269 of 2019. The appellant, mother of the deceased minor Soniben aged 13 years, claimed compensation of Rs.5,00,000 under the Second Schedule of the MV Act for the untimely death of her daughter in a motor accident on 19.11.2019. The Tribunal awarded only Rs.2,04,500, which the appellant contended was meager and contrary to the statutory minimum under Section 164 of the MV Act. The High Court heard arguments from learned advocate Mr. Kaash K. Thakkar for the appellant and Ms. Kirti S. Pathak for the Insurance Company. The appellant argued that the Tribunal ignored the notification dated 22.05.2018 and the amended Section 164, which mandates a minimum compensation of Rs.5,00,000 for death. The Insurance Company opposed, submitting that the Tribunal correctly applied the schedule under Section 163A. The High Court examined Section 164, which overrides other provisions and prescribes a fixed compensation of Rs.5,00,000 for death. The Court noted that the accident occurred on 19.11.2019, after the amendment, and the Tribunal erred in awarding a lesser amount. The Court allowed the appeal, set aside the Tribunal's award, and directed the Insurance Company to pay Rs.5,00,000 with interest at 7.5% per annum from the date of the claim petition until realization, within eight weeks.

Headnote

A) Motor Accident Claims - Compensation for Death of Minor - Section 164 Motor Vehicles Act, 1988 - Minimum Compensation - The Tribunal awarded Rs.2,04,500 to the mother of a 13-year-old deceased daughter, but Section 164 mandates a minimum of Rs.5,00,000 in case of death. The High Court held that the Tribunal ignored the statutory provision and enhanced the compensation to Rs.5,00,000 with interest at 7.5% per annum from the date of claim petition. (Paras 1-8)

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in awarding compensation of Rs.2,04,500 instead of the minimum compensation of Rs.5,00,000 as per Section 164 of the Motor Vehicles Act, 1988?

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Final Decision

Appeal allowed. The judgment and award dated 14.12.2023 passed by the Motor Accident Claims Tribunal (Main), District Patan in MACP No.269 of 2019 is set aside. The Insurance Company is directed to pay Rs.5,00,000 with interest at 7.5% per annum from the date of claim petition till realization within eight weeks.

Law Points

  • Section 164 of Motor Vehicles Act
  • 1988 provides for minimum compensation of Rs.5
  • 00
  • 000 in case of death
  • Tribunal erred in awarding lesser amount
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Case Details

2026 LawText (GUJ) (02) 843

R/FIRST APPEAL NO. 332 of 2024

2026-02-26

Hasmukh D. Suthar

2026:GUJHC:15760

Kaash K Thakkar, KK Thakkar for Appellant; Kirti S Pathak for Defendant No.2

Liliben Ajmalbhai Thakor

Shirajbhai Subhanbhai Bhatti & Ors.

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Nature of Litigation

First Appeal under Section 173 of Motor Vehicles Act, 1988 against judgment and award of Motor Accident Claims Tribunal

Remedy Sought

Enhancement of compensation from Rs.2,04,500 to Rs.5,00,000

Filing Reason

Claimant aggrieved by meager compensation awarded by Tribunal

Previous Decisions

Motor Accident Claims Tribunal (Main), District Patan awarded Rs.2,04,500 in MACP No.269 of 2019 on 14.12.2023

Issues

Whether the Tribunal erred in awarding compensation less than the statutory minimum under Section 164 of the Motor Vehicles Act, 1988?

Submissions/Arguments

Appellant: Tribunal ignored Section 164 and notification dated 22.05.2018, should have awarded minimum Rs.5,00,000 Insurance Company: Tribunal correctly applied Section 163A schedule, no error

Ratio Decidendi

Section 164 of the Motor Vehicles Act, 1988 provides a fixed minimum compensation of Rs.5,00,000 in case of death, overriding other provisions. The Tribunal must award this amount regardless of the schedule under Section 163A.

Judgment Excerpts

Section 164 of the MV Act reads as under:- '164. Payment of compensation in case of death or grievous hurt, etc. - (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death...'

Procedural History

Claim petition MACP No.269 of 2019 filed before Motor Accident Claims Tribunal (Main), District Patan; Tribunal awarded Rs.2,04,500 on 14.12.2023; Appellant filed First Appeal No.332 of 2024 before High Court of Gujarat on 26.02.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 164, Section 163A, Section 173
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