Gujarat High Court Allows Appeal for Enhanced Compensation in Motor Accident Claim for Skilled Labourer Deceased — Minimum Wages Applied and Correct Multiplier Used Under Motor Vehicles Act, 1988. Deceased aged 28 years, skilled labourer in stone crushing, died in bus accident; Tribunal's award enhanced from Rs.12,67,800/- to Rs.18,14,000/-.

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

The present First Appeal under Section 173 of the Motor Vehicles Act, 1988 was filed by the appellants, who are the original claimants and legal heirs of the deceased Ravibhai Vajubhai Rudatala, against the judgment and award dated 30.08.2024 passed by the Motor Accident Claims Tribunal (Main), Surendranagar in Motor Accident Claim Petition No.104/2021. The Tribunal had partly allowed the claim petition and awarded Rs.12,67,800/- with interest at 9% per annum. The accident occurred on 28.03.2021 when the deceased was driving his motorcycle carefully on the side of the road. At about 10:15 a.m., while crossing the highway, the ST Bus No.GJ-18-Z-4643, driven by opponent No.2 in a rash and negligent manner with excessive speed, dashed into the motorcycle, causing grievous injuries to the deceased, who died during treatment. The claimants sought compensation of Rs.29 lakh. The Tribunal held the driver of the ST Bus solely negligent and awarded compensation. The claimants appealed seeking enhancement. The main legal issues were whether the Tribunal erred in determining the income of the deceased, the dependency multiplier, and the conventional heads. The appellants argued that the deceased was a skilled labourer in stone crushing and the Tribunal should have considered minimum wages for skilled labour instead of notional income of Rs.6,000/- per month. They also contended that the multiplier should be 18 as per Sarla Verma v. Delhi Transport Corporation, and that future prospects of 40% should be added. The respondent, Gujarat State Road Transport Corporation, supported the Tribunal's award. The High Court analyzed the evidence and found that the deceased was a skilled labourer, and the minimum wages for skilled labour at the time of accident were Rs.9,000/- per month. The Court applied a multiplier of 18, added 40% future prospects, deducted 1/3rd towards personal expenses, and awarded Rs.1,000/- for loss of estate, Rs.15,000/- for funeral expenses, and Rs.40,000/- per claimant for loss of consortium. The total compensation was recalculated as Rs.18,14,000/-. The Court allowed the appeal, enhancing the compensation by Rs.5,46,200/- with interest at 9% per annum from the date of claim petition.

Headnote

A) Motor Accident Claims - Compensation for Death - Income Determination - Deceased was a skilled labourer in stone crushing - Tribunal erred in taking notional income of Rs.6,000/- per month instead of minimum wages for skilled labour - Held that minimum wages for skilled labour prevailing at the time of accident should be considered (Paras 5-6).

B) Motor Accident Claims - Dependency Calculation - Multiplier - Deceased aged 28 years - Tribunal applied multiplier of 15 instead of 18 as per Sarla Verma - Held that multiplier of 18 is applicable for age group 26-30 (Para 7).

C) Motor Accident Claims - Conventional Heads - Loss of Estate, Funeral Expenses, Loss of Consortium - Tribunal awarded Rs.15,000/- each for loss of estate and funeral expenses, and Rs.40,000/- for loss of consortium - Held that as per Pranay Sethi, loss of estate and funeral expenses should be Rs.15,000/- each, and loss of consortium should be Rs.40,000/- per claimant (Paras 8-9).

D) Motor Accident Claims - Future Prospects - Self-Employed - Deceased aged 28 years - Tribunal did not grant future prospects - Held that 40% future prospects should be added as per Pranay Sethi (Para 10).

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, particularly regarding the income of the deceased, dependency calculation, and conventional heads.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 30.08.2024 is modified. The total compensation is enhanced from Rs.12,67,800/- to Rs.18,14,000/-. The respondent No.1 is directed to deposit the enhanced amount of Rs.5,46,200/- with interest at 9% per annum from the date of claim petition within eight weeks. The award is modified accordingly.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 173
  • Compensation for death
  • Minimum wages for skilled labour
  • Dependency calculation
  • Multiplier as per Sarla Verma
  • Conventional heads under Pranay Sethi
  • Future prospects for self-employed
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Case Details

2026 LawText (GUJ) (02) 1032

R/First Appeal No. 2837 of 2025

2026-02-06

Hasmukh D. Suthar

2026:GUJHC:9091

Ms. Amrita Ajmera for the Appellants, Ms. Sejal K. Mandavia for Respondent No.1

Vajubhai Maganbhai Rudatala & Anr.

Gujarat State Road Transport Corporation & Anr.

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Nature of Litigation

First Appeal under Section 173 of the Motor Vehicles Act, 1988 for enhancement of compensation in a motor accident claim.

Remedy Sought

Appellants (original claimants) sought enhancement of compensation awarded by the Motor Accident Claims Tribunal.

Filing Reason

The Tribunal awarded Rs.12,67,800/- which the claimants considered inadequate; they sought higher compensation based on correct income, multiplier, and conventional heads.

Previous Decisions

The Motor Accident Claims Tribunal (Main), Surendranagar partly allowed MACP No.104/2021 on 30.08.2024, awarding Rs.12,67,800/- with 9% interest.

Issues

Whether the Tribunal erred in taking the income of the deceased as Rs.6,000/- per month instead of minimum wages for skilled labour? Whether the Tribunal applied the correct multiplier of 15 instead of 18? Whether the Tribunal erred in not granting future prospects? Whether the conventional heads were correctly awarded?

Submissions/Arguments

Appellants argued that the deceased was a skilled labourer in stone crushing and the Tribunal should have considered minimum wages for skilled labour (Rs.9,000/- per month) instead of notional income of Rs.6,000/-. Appellants contended that the multiplier should be 18 as per Sarla Verma, not 15. Appellants submitted that 40% future prospects should be added as per Pranay Sethi. Respondent supported the Tribunal's award, arguing it was just and proper.

Ratio Decidendi

In motor accident claims, the income of a deceased skilled labourer should be determined based on minimum wages for skilled labour prevailing at the time of accident, not notional income. The multiplier should be as per the age of the deceased as per Sarla Verma. Future prospects of 40% should be added for self-employed persons aged below 40 as per Pranay Sethi. Conventional heads should be awarded as per Pranay Sethi.

Judgment Excerpts

The deceased was a skilled labourer in stone crushing and the Tribunal ought to have considered the minimum wages for skilled labour prevailing at the time of accident. As per Sarla Verma, for age group 26-30, multiplier of 18 is applicable. As per Pranay Sethi, 40% future prospects should be added for self-employed persons aged below 40.

Procedural History

The Motor Accident Claims Tribunal (Main), Surendranagar partly allowed MACP No.104/2021 on 30.08.2024, awarding Rs.12,67,800/-. The claimants filed First Appeal No.2837/2025 before the High Court of Gujarat seeking enhancement. The High Court admitted the appeal and heard it finally with consent of parties, delivering judgment on 06.02.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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