Case Note & Summary
The appeal arises from a motor accident claim petition filed under Section 163-A of the Motor Vehicles Act, 1988, by the heirs of deceased Sanjaykhan @ Jahid Joravarkha Bloch, a minor aged 14 years. The deceased had gone to village Gheti to buy grass for his cattle and was returning home in a three-wheeler tempo (registration No. GJ-4-U-9751) as the owner of the goods loaded. The tempo was driven by respondent No.1 in a rash and negligent manner at excessive speed, and while taking a sudden turn near Bhavani Temple on Gheti Road, the deceased fell from the tempo, sustained grievous injuries, and succumbed. The claim petition sought compensation of Rs.4,00,000/-. The Motor Accident Claims Tribunal (Main), Bhavnagar, partly allowed the claim and awarded Rs.1,54,500/- with interest at 7.5% per annum from the date of filing. Aggrieved by the inadequacy of compensation, the claimants filed the present appeal. The legal issue was whether the deceased, being the owner of goods travelling in a goods vehicle, is entitled to compensation under the structured formula of Section 163-A, and whether the compensation awarded was just and proper. The appellant argued that the Tribunal erred in not applying the correct multiplier and notional income as per the Second Schedule. The respondent-insurance company contended that the deceased was a gratuitous passenger and not covered under Section 163-A. The High Court held that the deceased was the owner of the goods and thus not a gratuitous passenger; the structured formula under Section 163-A applies irrespective of negligence. Applying the Second Schedule, the court took notional income of Rs.15,000/- per annum, multiplier of 15, deducted 1/3rd for personal expenses, and added funeral expenses of Rs.4,500/-, arriving at total compensation of Rs.1,54,500/-. The court found that the Tribunal had already awarded the correct amount, and thus the appeal was dismissed. The judgment was delivered by Justice Mool Chand Tyagi on 11/02/2026.
Headnote
A) Motor Accident Claims - Compensation under Section 163-A MV Act - Owner of Goods - Deceased, a minor aged 14 years, was travelling as owner of grass loaded in a three-wheeler tempo - He fell due to rash driving and died - Held that the deceased being owner of goods is not a gratuitous passenger and is entitled to compensation under Section 163-A of the Motor Vehicles Act, 1988 - The structured formula applies irrespective of negligence (Paras 1-10). B) Motor Accident Claims - Notional Income - Multiplier - For a minor deceased, notional income of Rs.15,000/- per annum as per Second Schedule to Section 163-A MV Act is applicable - Multiplier of 15 applied - After deducting 1/3rd for personal expenses, loss of dependency computed at Rs.1,50,000/- - Funeral expenses of Rs.4,500/- added - Total compensation enhanced from Rs.1,54,500/- to Rs.1,54,500/- (no change) - Interest at 7.5% per annum upheld (Paras 11-15).
Issue of Consideration
Whether the claimants are entitled to enhanced compensation under Section 163-A of the Motor Vehicles Act, 1988, and whether the deceased being the owner of goods travelling in the goods vehicle is covered under the structured formula.
Final Decision
The appeal is dismissed. The judgment and award dated 06.01.2011 passed by the Motor Accident Claims Tribunal (Main), Bhavnagar in MACP No.514 of 2008 is confirmed. No order as to costs.
Law Points
- Section 163-A Motor Vehicles Act
- 1988
- structured formula compensation
- owner of goods
- gratuitous passenger
- notional income
- multiplier
- contributory negligence
- rash and negligent driving
