Case Note & Summary
The appellants, original claimants, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 13.09.2024 passed by the Motor Accident Claims Tribunal (Auxi.), Bhuj - Kutch, in MAC Petition No. 578 of 2021. The claim arose from a fatal accident on 09.07.2021, when the deceased Hasmukh @ Hasmukhnath Dharamnath Gunsai was riding a motorcycle bearing Reg. No. GJ-12-DL 1780 and was hit by a Bolero bearing Reg. No. GJ-03-BR-7808 driven rashly and negligently, resulting in his death. The claimants sought compensation. The Tribunal partly allowed the claim, but the claimants appealed contending that the Tribunal erred in computing the deceased's income by taking an average of his salary slips (Rs. 15,000/-) instead of considering his last drawn salary of Rs. 16,456/-. The High Court heard learned Advocate Mr. N. A. Bhalodi for the appellants and learned Advocate Ms. E. Shailaja for the respondent Insurance Company. The court found that the Tribunal's approach was erroneous as there was no evidence of reduction in income, and the last salary should have been taken. The court allowed the appeal, set aside the Tribunal's award on income, and directed recomputation of compensation based on the last salary of Rs. 16,456/-. The Insurance Company was directed to pay the enhanced amount with interest.
Headnote
A) Motor Accident Claims - Computation of Income - Last Drawn Salary - Motor Vehicles Act, 1988, Section 173 - The Tribunal had taken an average of the deceased's salary slips to arrive at an income of Rs. 15,000/-, whereas the last drawn salary was Rs. 16,456/-. The High Court held that the Tribunal ought to have considered the last salary before the date of accident, as there was no evidence of reduction in income. The appeal was allowed and compensation enhanced accordingly. (Paras 4-6)
Issue of Consideration
Whether the Tribunal erred in taking the average of the deceased's salary instead of considering the last drawn salary for computing compensation under the Motor Vehicles Act, 1988.
Final Decision
The appeal is allowed. The judgment and award of the Tribunal dated 13.09.2024 is set aside to the extent of income determination. The income of the deceased is taken as Rs. 16,456/- per month. The Tribunal is directed to recompute the compensation accordingly and pay the enhanced amount with interest at the rate fixed by the Tribunal.
Law Points
- Income determination for loss of dependency
- Last drawn salary vs average salary
- Motor Vehicles Act
- 1988 Section 173
