High Court of Gujarat Allows Appeal in Motor Accident Claim — Notional Income Enhanced to Minimum Wages. Deceased Labourer's Income Assessed at Rs.11,000/- per Month Based on Minimum Wages for 2019 Accident.

High Court: Gujarat High Court In Favour of Accused
  • 141
Judgement Image
Font size:
Print

Case Note & Summary

The present appeal arises from a judgment and award dated 20.06.2024 passed by the Motor Accident Claims Tribunal (Main), Kheda at Nadiad, in Motor Accident Claim Petition No.252/2020. The appellants, Vinaben Manubhai Thakor and another, are the original claimants and legal heirs of the deceased, Manubhai Thakor, who died in a motor vehicle accident on 03.12.2019. The deceased was travelling as a passenger in an auto rickshaw when a ST bus driven rashly and negligently on the wrong side dashed into the rickshaw, causing fatal injuries. The claimants filed a petition seeking compensation of Rs.15,00,000/-. The Tribunal awarded Rs.9,12,000/- with interest at 7.5% per annum. The appeal was filed only on the ground of quantum, challenging the notional income assessed at Rs.6,000/- per month and the amounts awarded under conventional heads. The High Court, relying on the principle in Govind Yadav v. National Insurance Co. Ltd., held that in the absence of proof of income, the notional income should be based on minimum wages prevalent at the time of the accident. Since the accident occurred in December 2019, the court took the notional income as Rs.11,000/- per month. Applying a multiplier of 13 (as the deceased was 48 years old) and deducting 1/3rd towards personal expenses, the loss of dependency was computed as Rs.11,44,000/-. Additionally, the court awarded Rs.18,000/- for loss of estate, Rs.18,000/- for funeral expenses, and Rs.40,000/- for spousal consortium, totaling Rs.12,20,000/-. The appeal was partly allowed, enhancing the compensation from Rs.9,12,000/- to Rs.12,20,000/- with interest at 7.5% per annum from the date of petition till realization.

Headnote

A) Motor Vehicles Act - Compensation - Notional Income - Minimum Wages - In absence of proof of income, the Tribunal must consider prevalent minimum wages as notional income for computing loss of dependency - The deceased was a labourer aged 48 years; accident occurred in December 2019 - Held that notional income should be taken as Rs.11,000/- per month based on minimum wages (Paras 5-7).

B) Motor Vehicles Act - Compensation - Conventional Heads - Loss of Estate, Funeral Expenses, Spousal Consortium - The Tribunal awarded inadequate amounts under conventional heads - Held that claimants are entitled to Rs.18,000/- for loss of estate, Rs.18,000/- for funeral expenses, and Rs.40,000/- for spousal consortium as per settled law (Para 7).

C) Motor Vehicles Act - Compensation - Multiplier - Age of Deceased - The deceased was 48 years old as per PM report - Held that multiplier of 13 is applicable as per Sarla Verma v. DTC (Para 7).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Tribunal erred in assessing the notional income of the deceased at Rs.6,000/- per month and in awarding compensation under conventional heads in a motor accident claim petition.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal is partly allowed. The judgment and award dated 20.06.2024 passed by the Motor Accident Claims Tribunal (Main), Kheda at Nadiad, in Motor Accident Claim Petition No.252/2020 is modified. The claimants are entitled to total compensation of Rs.12,20,000/- with interest at 7.5% per annum from the date of petition till realization. The respondents are directed to deposit the enhanced amount within eight weeks.

Law Points

  • Notional income assessment for deceased without proof of income
  • Minimum wages as basis for notional income
  • Compensation under conventional heads in motor accident claims
  • Multiplier application based on age of deceased
Subscribe to unlock Law Points Subscribe Now

Case Details

2026 LawText (GUJ) (02) 265

R/First Appeal No. 356 of 2025

2026-02-06

Hasmukh D. Suthar

Nishit A Bhalodi for the Appellants

Vinaben Manubhai Thakor & Anr.

Dharmendrakumar Kumandas Agrawat & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award of the Motor Accident Claims Tribunal in a claim petition for compensation arising from a fatal motor accident.

Remedy Sought

The appellants (original claimants) sought enhancement of compensation awarded by the Tribunal.

Filing Reason

The claimants were aggrieved by the Tribunal's assessment of notional income at Rs.6,000/- per month and inadequate compensation under conventional heads.

Previous Decisions

The Tribunal awarded Rs.9,12,000/- with interest at 7.5% per annum in Motor Accident Claim Petition No.252/2020.

Issues

Whether the Tribunal erred in assessing the notional income of the deceased at Rs.6,000/- per month instead of minimum wages? Whether the compensation awarded under conventional heads (loss of estate, funeral expenses, spousal consortium) is inadequate?

Submissions/Arguments

The learned counsel for the appellants argued that the Tribunal erred in considering monthly income of the deceased as Rs.6,000/- on notional basis, as he was doing agriculture and labour work earning Rs.11,000/- per month. The Tribunal also erred in not properly awarding compensation under other conventional heads.

Ratio Decidendi

In the absence of proof of income, the notional income of a deceased should be assessed based on the prevalent minimum wages at the time of the accident. For a deceased aged 48 years, the multiplier of 13 is applicable. Compensation under conventional heads should be awarded as per settled law: Rs.18,000/- for loss of estate, Rs.18,000/- for funeral expenses, and Rs.40,000/- for spousal consortium.

Judgment Excerpts

Feeling aggrieved by and dissatisfied with the judgment and award dated 20.06.2024 passed by learned Motor Accident Claims Tribunal (Main), Kheda at Nadiad, ... the appellants – original claimants preferred present appeal under Section 173 of the Motor Vehicles Act, 1988. As per the law laid down by the Hon’ble Supreme Court in the case of Govind Yadav Vs. National Insurance Co. Ltd., ... that if no proof of income is produced on the record, then Tribunal has to consider prevalent minimum wages in absence of evidence of monthly income of the deceased.

Procedural History

The original claim petition (M.A.C.P. No.252/2020) was filed before the Motor Accident Claims Tribunal (Main), Kheda at Nadiad, which awarded compensation on 20.06.2024. Aggrieved, the claimants filed the present First Appeal No.356/2025 before the High Court of Gujarat on 18.02.2025. The appeal was heard and decided on 06.02.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Declares Plaintiff Owner of Copyright in Drawings Developed Under Contract for Valuable Consideration. Payment of Rs.2,87,500/- for Development of Drug Powder Inhaler Transfers Copyright Ownership Under Section 17 of Copyright Act, ...
Related Judgement
High Court Bombay High Court Dismisses Petition of Assistant Teacher Challenging Termination for Lack of D.Ed. Qualification. Teacher appointed on temporary basis for primary section without required D.Ed. degree not entitled to reinstatement under Maharashtra ...