Gujarat High Court Dismisses Appeal for Enhancement of Compensation in Minor's Death Case — Tribunal's Award of Rs. 4,80,000/- Upheld as Just and Proper Under Motor Vehicles Act, 1988. Notional Income Assessed at Rs. 25,000/- Per Annum but Tribunal's Higher Award Not Disturbed.

High Court: Gujarat High Court
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Case Note & Summary

The case involves a first appeal under Section 173 of the Motor Vehicles Act, 1988, filed by the original claimants (parents of the deceased minor) against the judgment and award dated 07.11.2023 passed by the Motor Accident Claims Tribunal, Mahuva in MACP No.16 of 2023. The deceased, Hardevbhai Jilubhai Gohil, a minor aged 12 years, died in a motor accident on 22.03.2023 when an S.T. Bus (GJ-18-2-2630) driven rashly and negligently by Opponent No.1 dashed into a Magic Car (GJ-08-Z-5249) from behind while the deceased was attempting to board the Magic Car. The claimants sought compensation. The Tribunal awarded Rs. 4,80,000/- with interest at 7.5% per annum. The appellants contended that the Tribunal erred in assessing notional income and conventional heads. The respondents opposed, arguing the award was just. The High Court, after hearing, held that the notional income should be Rs. 25,000/- per annum as per the Second Schedule, applied multiplier of 15, deducted 1/3rd for personal expenses, and added Rs. 18,000/- for funeral expenses and Rs. 18,000/- for loss of estate, totaling Rs. 2,86,000/-. However, since the Tribunal had awarded Rs. 4,80,000/-, which was higher, the Court found no reason to reduce it and dismissed the appeal, confirming the award.

Headnote

A) Motor Accident Compensation - Death of Minor - Notional Income - Motor Vehicles Act, 1988, Section 168 - The appeal challenged the Tribunal's award of compensation for the death of a minor aged 12 years. The High Court held that the notional income of the deceased should be assessed at Rs. 25,000/- per annum as per the Second Schedule, and after applying multiplier of 15 and deducting 1/3rd for personal expenses, the loss of dependency was calculated. The Court enhanced the compensation under conventional heads including funeral expenses and loss of estate. Held that the Tribunal erred in not awarding just compensation (Paras 6-8).

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Issue of Consideration

Whether the compensation awarded by the Tribunal for the death of a minor in a motor accident is just and proper, and whether the notional income and conventional heads require enhancement.

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Final Decision

The appeal is dismissed. The judgment and award dated 07.11.2023 passed by the Motor Accident Claims Tribunal, Mahuva in MACP No.16 of 2023 is confirmed. No order as to costs.

Law Points

  • Notional income assessment for minor deceased
  • Conventional heads of compensation
  • Just and proper compensation under Motor Vehicles Act
  • 1988
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Case Details

2026 LawText (GUJ) (03) 743

R/First Appeal No. 592 of 2024

2026-03-03

Hasmukh D. Suthar

2026:GUJHC:16200

Nishit A Bhalodi for Appellant(s), Tanmay B Karia for Respondent No.2

Jilubhai Hikabhai Gohil & Anr.

Harshadbhai Harjivanbhai Dave & 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, Mahuva in MACP No.16 of 2023.

Remedy Sought

Enhancement of compensation awarded by the Tribunal for the death of a minor in a motor accident.

Filing Reason

The appellants (original claimants) were dissatisfied with the compensation awarded by the Tribunal, contending that the notional income and conventional heads were not properly assessed.

Previous Decisions

The Motor Accident Claims Tribunal, Mahuva passed judgment and award dated 07.11.2023 in MACP No.16 of 2023, awarding Rs. 4,80,000/- with interest at 7.5% per annum.

Issues

Whether the compensation awarded by the Tribunal for the death of a minor is just and proper? Whether the notional income of the deceased minor should be enhanced? Whether the conventional heads of compensation require enhancement?

Submissions/Arguments

Appellant: The Tribunal erred in assessing notional income and conventional heads; compensation should be enhanced. Respondents: The Tribunal rightly awarded just and proper compensation; no interference is warranted.

Ratio Decidendi

In motor accident claims for death of a minor, notional income may be assessed at Rs. 25,000/- per annum as per the Second Schedule, with multiplier of 15 and deduction of 1/3rd for personal expenses. However, if the Tribunal has awarded a higher amount, the appellate court should not reduce it unless it is perverse or unjust. The award of Rs. 4,80,000/- was found to be just and proper.

Judgment Excerpts

This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellant–original claimant against the judgment and award dated 07.11.2023 passed by the learned Motor Accident Claims Tribunal, Mahuva in MACP No.16 of 2023. The learned Tribunal has committed an error in not properly considering the evidence produced on record. The learned Tribunal has rightly awarded just and proper compensation in view of the evidence available on record.

Procedural History

The original claim petition (MACP No.16 of 2023) was filed before the Motor Accident Claims Tribunal, Mahuva, which awarded compensation on 07.11.2023. Aggrieved, the claimants filed the present first appeal under Section 173 of the Motor Vehicles Act, 1988 before the High Court of Gujarat at Ahmedabad. The appeal was heard and decided on 03.03.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 173, Section 168
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