Case Note & Summary
The appeal was filed under Section 173 of the Motor Vehicles Act, 1988 by the heirs of the deceased Rajubhai Kachrabhai Prajapati, who died in a motor vehicle accident. The claimants were dissatisfied with the Tribunal's judgment and award dated 24.12.2013, which partly allowed their claim for compensation, awarding Rs. 7,48,920/- instead of the claimed Rs. 20 Lakhs. The appeal was admitted on 28.09.2015, but the matter was dismissed for non-prosecution against one of the respondents due to non-service of notice. The claimants argued that the deceased had multiple sources of income and provided documentary evidence to support their claim of Rs. 15,000/- per month income, which the Tribunal did not fully accept. The Insurance Company contended that the Tribunal rightly fixed the income at Rs. 4,800/- based on Income Tax Returns. The Court analyzed the evidence, including the deceased's business activities and the Tribunal's assessment of negligence, which was determined to be 10% for the deceased and 90% for the truck driver. The Court ultimately found that the Tribunal's compensation amount was inadequate and recalculated the future loss of income and conventional heads, leading to an enhanced total compensation of Rs. 8,53,500/-. The appeal was allowed, and the Insurance Company was directed to deposit the enhanced amount within four weeks. The Tribunal was instructed to disburse the amount to the claimants after verification, adhering to Supreme Court guidelines.
Headnote
A) Motor Vehicles Act - Compensation Quantum - Assessment of Compensation - Motor Vehicles Act, 1988, Section 166 - The Tribunal's determination of compensation was challenged for being inadequate, with the claimants seeking enhancement based on the deceased's income and conventional heads. The Court found merit in the claimants' arguments and enhanced the compensation amount. Held that the claimants were entitled to an increased compensation of Rs. 1,04,580/- (Paras 17-19).
Issue of Consideration
Whether the Tribunal committed any error in determining the amount of compensation to the tune of Rs.7,48,920/-.
Final Decision
The appeal was allowed, enhancing the compensation amount to Rs. 8,53,500/- with interest at 9% per annum, to be paid by the Insurance Company. The Tribunal was directed to disburse the amount to the claimants after verification.
Law Points
- Motor Vehicles Act
- 1988
- compensation quantum
- negligence assessment
- income determination
- conventional heads
- future loss of income



