Gujarat High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced from Rs.3,64,500 to Rs.5,50,000. Apportionment of Liability Between Two Tortfeasors Upheld Under Section 173 of Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Prosecution
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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 legal heirs of the deceased Shantibhai Khodabhai Gami, against the common judgment and award dated 15.04.2006 passed by the Motor Accident Claims Tribunal (Aux.), Junagadh in Motor Accident Claim Petition No.102 of 1999. The Tribunal had awarded compensation of Rs.3,64,500 with 7.5% per annum interest, holding Opponents No.1 and 2 (driver and owner of Truck No.GJ-11-U-8489) and Opponents No.4 and 5 (owner and insurance company of Truck No.HR-38-BG-0125) liable jointly and severally, with 50% liability each. The Tribunal exonerated Opponent No.3, the insurance company of the first truck. The brief facts are that on 22.09.1998 at about 10:00 p.m., the deceased was travelling in Truck No.GJ-11-U-8489, which was driven rashly and negligently by Opponent No.1, and it dashed with Truck No.HR-38-BG-0125 near village Tokrala on Ahmedabad-Limbdi National Highway. The deceased sustained serious injuries and succumbed. The legal heirs (father, mother, wife, and three minor children) filed a claim petition seeking Rs.10 lakh compensation. The Tribunal assessed the deceased's income at Rs.2,500 per month, applied multiplier of 15, deducted 1/3rd for personal expenses, and awarded Rs.3,64,500. The appellants sought enhancement. The High Court found that the Tribunal had not properly considered the evidence regarding income and multiplier. The Court noted that the deceased was 30 years old and a driver by profession, and his income should be assessed at Rs.3,000 per month. Applying multiplier of 15 and deducting 1/3rd, the loss of dependency was calculated as Rs.3,60,000. Adding Rs.1,50,000 for loss of consortium, Rs.25,000 for funeral expenses, and Rs.15,000 for loss of estate, the total compensation was enhanced to Rs.5,50,000. The Court upheld the apportionment of liability between the two tortfeasors, holding that the claimants are entitled to recover the entire amount from any one of them. The appeal was partly allowed.

Headnote

A) Motor Accident Claims - Compensation Enhancement - Section 173 Motor Vehicles Act, 1988 - Appellants sought enhancement of compensation awarded by Tribunal for death in a collision between two trucks - Court enhanced compensation from Rs.3,64,500 to Rs.5,50,000 with 7.5% interest per annum, applying multiplier of 15 and deducting 1/3rd for personal expenses - Held that Tribunal's assessment of income and multiplier was erroneous and required correction (Paras 1-7).

B) Motor Accident Claims - Apportionment of Liability - Joint and Several Liability - Tribunal held driver and owner of first truck liable to 50% and owner and insurer of second truck liable to 50% jointly and severally - Court upheld apportionment as both drivers were negligent - Held that apportionment between joint tortfeasors is permissible and does not affect claimants' right to recover full amount from any one (Paras 1-7).

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Issue of Consideration

Whether the compensation awarded by the Tribunal was just and proper, and whether the apportionment of liability between the two tortfeasors was correct.

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Final Decision

Appeal partly allowed. Compensation enhanced from Rs.3,64,500 to Rs.5,50,000 with 7.5% interest per annum from the date of petition till realization. Apportionment of liability upheld. Claimants entitled to recover entire amount from any one of the joint tortfeasors.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 173
  • Compensation enhancement
  • Apportionment of liability
  • Joint and several liability
  • Contributory negligence
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Case Details

2026 LawText (GUJ) (02) 1251

R/First Appeal No. 1132 of 2025

2026-02-17

Hasmukh D. Suthar

2026:GUJHC:13258

Mr. Aditya P. Mistri for Appellants, Mr. G.C. Mazmudar and Mr. H.G. Mazmudar for Defendant No.3, Mr. Tanmay B. Karia for Defendant No.5

Khodabhai Lakhabhai Deceased Through LHR & Ors.

Vitthal Manjibhai & Ors.

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Nature of Litigation

First Appeal under Section 173 of Motor Vehicles Act, 1988 against award of Motor Accident Claims Tribunal.

Remedy Sought

Enhancement of compensation from Rs.3,64,500 to Rs.10 lakh with cost and interest.

Filing Reason

Claimants aggrieved by inadequate compensation awarded by Tribunal.

Previous Decisions

Motor Accident Claims Tribunal (Aux.), Junagadh awarded Rs.3,64,500 with 7.5% interest per annum in Claim Petition No.102 of 1999.

Issues

Whether the compensation awarded by the Tribunal is just and proper? Whether the apportionment of liability between the two tortfeasors is correct?

Submissions/Arguments

Appellants argued that the Tribunal erred in assessing income at Rs.2,500 per month and applying multiplier of 15, and that compensation should be enhanced. Respondents supported the Tribunal's award.

Ratio Decidendi

In motor accident claims, compensation must be just and proper, considering the deceased's income, age, and multiplier. Apportionment of liability between joint tortfeasors does not affect the claimants' right to recover the full amount from any one of them.

Judgment Excerpts

The present First Appeal under Section 173 of the Motor Vehicles Act, 1988 is preferred by the appellants – original claimants – legal heirs of the deceased – Shantibhai Khodabhai Gami, being aggrieved and dissatisfied with the common judgment and award dated 15.04.2006... The Tribunal has awarded compensation of Rs.3,64,500/- with 7.5% per annum interest to the claimants... The Court enhanced compensation to Rs.5,50,000 with 7.5% interest per annum.

Procedural History

Claim Petition No.102 of 1999 filed before Motor Accident Claims Tribunal (Aux.), Junagadh. Tribunal awarded Rs.3,64,500 on 15.04.2006. Appellants filed First Appeal No.1132 of 2025 before Gujarat High Court. Appeal heard and decided on 17.02.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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High Court Gujarat High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced from Rs.3,64,500 to Rs.5,50,000. Apportionment of Liability Between Two Tortfeasors Upheld Under Section 173 of Motor Vehicles Act, 1988.