Gujarat High Court Partly Allows Appeal by ST Corporation in Motor Accident Claim — Reduces Compensation Due to Lower Income Assessment and Conventional Damages. Deceased Motorcyclist's Income Reduced to Minimum Wage, Contributory Negligence Upheld at 10%.

High Court: Gujarat High Court
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Case Note & Summary

The present appeal was filed by the Gujarat State Road Transport Corporation (original respondent) under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 30.09.2021 passed by the Motor Accident Claims Tribunal (Main), District Court Kheda at Nadiad in MACP No.265 of 2019. The claim petition was filed by the legal heirs of deceased Bakabhai Sardarbhai Bhabhor under Section 166 of the MV Act seeking compensation of Rs.25,00,000/- for the death of the deceased in a motor accident. The accident occurred on 02.02.2018 when the deceased was riding a motorcycle bearing registration No.GJ-23-L-7138 and an ST Bus bearing registration No.GJ-18-Z-2291, driven in a rash and negligent manner, dashed with the motorcycle, causing fatal injuries. The Tribunal awarded compensation of Rs.14,72,000/- with 9% interest, apportioning 90% negligence on the ST Bus driver and 10% on the deceased motorcyclist. The appellant Corporation contended that the deceased was 100% negligent as he suddenly crossed the road from behind parked trucks, and that the compensation was exorbitant without income proof. The High Court examined the evidence, including the deposition of the ST Bus driver, and found no perversity in the Tribunal's finding on negligence, as the bus driver had a duty to anticipate such movements. However, the Court reduced the deceased's income from Rs.9,800/- to Rs.7,000/- per month based on minimum wages for an unskilled worker, and reduced conventional damages from Rs.70,000/- to Rs.50,000/- as per Pranay Sethi. The total compensation was recalculated, and the appeal was partly allowed, reducing the award accordingly.

Headnote

A) Motor Vehicles Act - Contributory Negligence - Apportionment of Liability - Sections 166, 173 Motor Vehicles Act, 1988 - The appeal challenged the Tribunal's finding of 90% negligence on the ST Bus driver. The High Court upheld the apportionment, finding no perversity in the Tribunal's assessment based on evidence, and rejected the appellant's claim of 100% negligence on the deceased motorcyclist. (Paras 1-6)

B) Motor Vehicles Act - Compensation - Income Proof - Sections 166, 173 Motor Vehicles Act, 1988 - The appellant contended that the Tribunal erred in assessing the deceased's income at Rs.9,800/- without proof. The High Court reduced the income to Rs.7,000/- per month as per the minimum wage schedule for an unskilled worker, and accordingly reduced the compensation. (Paras 5-6)

C) Motor Vehicles Act - Conventional Damages - Sections 166, 173 Motor Vehicles Act, 1988 - The High Court reduced the conventional damages (funeral expenses, loss of estate, loss of consortium) from Rs.70,000/- to Rs.50,000/- as per the decision in National Insurance Co. Ltd. v. Pranay Sethi. (Para 6)

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Issue of Consideration

Whether the Tribunal erred in apportioning 90% negligence on the ST Bus driver and in awarding exorbitant compensation without proper income proof.

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Final Decision

The appeal is partly allowed. The judgment and award dated 30.09.2021 is modified. The compensation is reduced from Rs.14,72,000/- to a recalculated amount based on income of Rs.7,000/- per month and conventional damages of Rs.50,000/-. The rate of interest remains 9% per annum. The appellant is directed to deposit the modified amount within eight weeks.

Law Points

  • Contributory negligence
  • Apportionment of liability
  • Motor accident compensation
  • Income proof
  • Conventional damages
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Case Details

2026 LawText (GUJ) (02) 214

R/First Appeal No. 3990 of 2022

2026-02-26

Hasmukh D. Suthar

Ms. Sejal K. Mandavia for the Appellant, Mr. Hiren M. Modi for the Respondents

Divisional Controller, Gujarat State Road Transport Corporation

LHR of Deceased Bakabhai Sardarbhai Bhabhor & Ors.

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Nature of Litigation

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

Remedy Sought

The appellant (Gujarat State Road Transport Corporation) sought to set aside the award and dismiss the claim petition, or alternatively, reduce the compensation.

Filing Reason

The appellant was aggrieved by the Tribunal's finding of 90% negligence on the ST Bus driver and the exorbitant compensation awarded without proper income proof.

Previous Decisions

The Motor Accident Claims Tribunal (Main), District Court Kheda at Nadiad in MACP No.265 of 2019 awarded compensation of Rs.14,72,000/- with 9% interest, apportioning 90% negligence on the ST Bus driver and 10% on the deceased motorcyclist.

Issues

Whether the Tribunal erred in apportioning 90% negligence on the ST Bus driver? Whether the compensation awarded was exorbitant and based on incorrect income assessment?

Submissions/Arguments

Appellant argued that the deceased motorcyclist was 100% negligent as he suddenly crossed the road from behind parked trucks, and the bus driver could not see him from 100 meters. Appellant argued that the Tribunal wrongly considered the deceased's income at Rs.9,800/- without proof, and the conventional damages were excessive.

Ratio Decidendi

The Tribunal's finding on contributory negligence is based on evidence and not perverse; however, in the absence of income proof, the deceased's income should be assessed based on minimum wages for an unskilled worker, and conventional damages should be as per the guidelines in National Insurance Co. Ltd. v. Pranay Sethi.

Judgment Excerpts

The present appeal is filed by the original respondent-Gujarat State Road Transport Corporation under Section 173 of the Motor Vehicles Act, 1988... Learned advocate Ms.Sejal K. Mandavia for the appellant has mainly assailed the order on the ground that the learned Tribunal has committed an error in granting unjust, improper and exorbitant compensation...

Procedural History

The claim petition (MACP No.265 of 2019) was filed by the legal heirs of the deceased before the Motor Accident Claims Tribunal (Main), District Court Kheda at Nadiad, which awarded compensation on 30.09.2021. The appellant filed the present first appeal under Section 173 of the MV Act on 22.10.2022. The High Court heard the appeal and delivered judgment on 26.02.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 166, 173
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