High Court of Gujarat Dismisses Appeal by UPSRTC in Motor Accident Claim — Negligence of Bus Driver Proved. Corporation Liable as Owner of Offending Vehicle Under Section 166 of Motor Vehicles Act, 1988.

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

The appellant, Uttar Pradesh State Road Transport Corporation (UPSRTC), filed an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 22.10.2024 passed by the Motor Accident Claims Tribunal (Auxi.), Ahmedabad, in Motor Accident Claim Petition No.174 of 2016. The Tribunal had awarded compensation of Rs. 1,04,00,000/- with interest at 7.5% per annum to the respondents-claimants, who are the parents of the deceased Swapnil Kanubhai Patel. The deceased, a 22-year-old Architecture Engineering student, died in a motor vehicle accident on 16.11.2015 when his motorcycle collided with a UPSRTC bus near IOCL Depot Petrol Pump on the Bharatpur-Mathura road. The claimants alleged that the accident occurred due to the rash and negligent driving of the bus driver. The Tribunal, after considering the evidence including the testimony of an eye-witness and the panchnama of the scene, held that the bus driver was negligent and awarded compensation. The appellant challenged both the finding of negligence and the quantum of compensation. The High Court, after hearing the parties and perusing the record, found no merit in the appeal. It held that the Tribunal's finding of negligence was based on credible evidence and that the compensation was correctly computed considering the deceased's future income as a qualified architect, applying the multiplier of 18 and deducting 1/2 for personal expenses. The appeal was dismissed with no order as to costs.

Headnote

A) Motor Accident Claims - Negligence - Vicarious Liability - Sections 166, 173 Motor Vehicles Act, 1988 - The appeal challenged the Tribunal's finding of negligence against the bus driver and the quantum of compensation awarded to the claimants for the death of a motorcyclist in a collision with a UPSRTC bus. The High Court upheld the Tribunal's finding that the bus driver was negligent based on the evidence of the eye-witness and the panchnama of the scene of accident, and dismissed the appeal. (Paras 1-8)

B) Motor Accident Claims - Quantum of Compensation - Sections 166, 173 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 1,04,00,000/- with interest at 7.5% per annum to the claimants, parents of the deceased, who was a 22-year-old Architecture Engineering student. The High Court found no error in the computation of compensation based on the deceased's future income as a qualified architect, applying the multiplier of 18 and deducting 1/2 for personal expenses. (Paras 1-8)

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Issue of Consideration

Whether the Tribunal erred in holding the appellant UPSRTC liable for negligence and in awarding compensation to the claimants?

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Final Decision

Appeal dismissed. No order as to costs.

Law Points

  • Negligence in motor accident
  • vicarious liability of owner
  • quantum of compensation under Motor Vehicles Act
  • 1988
  • Sections 166 and 173
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Case Details

2026 LawText (GUJ) (03) 216

R/First Appeal No. 1127 of 2025

2026-03-02

Hasmukh D. Suthar

Mr. D. R. Prajapati for appellant, Mr. H. M. Modi for respondent nos.1 and 2

Uttar Pradesh State Road Transport Corporation

Manjulaben Kanubhai Patel & Ors.

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Nature of Litigation

Appeal under Section 173 of Motor Vehicles Act, 1988 against award of compensation in motor accident claim

Remedy Sought

Appellant sought setting aside of Tribunal's award holding it liable for negligence and awarding compensation

Filing Reason

Appellant aggrieved by Tribunal's finding of negligence and quantum of compensation

Previous Decisions

Tribunal awarded Rs. 1,04,00,000/- with interest at 7.5% per annum in MACP No.174/2016

Issues

Whether the Tribunal erred in holding the appellant liable for negligence? Whether the quantum of compensation awarded is excessive?

Submissions/Arguments

Appellant argued that the accident was caused due to negligence of the deceased motorcyclist, not the bus driver. Claimants supported the Tribunal's finding of negligence and quantum of compensation.

Ratio Decidendi

The Tribunal's finding of negligence against the bus driver was based on credible evidence of an eye-witness and panchnama, and the compensation was correctly computed based on the deceased's future income as a qualified architect.

Judgment Excerpts

Feeling aggrieved and dissatisfied with the judgment and award dated 22.10.2024 passed by learned Motor Accident Claims Tribunal (Auxi.), Ahmedabad... It is the case of the original claimants that the deceased Swapnil Kanubhai Patel... had gone to Sikkim – Gangtok for the purpose of training as a part of practical training of his Architecture Engineering course.

Procedural History

Claimants filed MACP No.174/2016 before Motor Accident Claims Tribunal (Auxi.), Ahmedabad, which awarded compensation on 22.10.2024. Appellant UPSRTC filed First Appeal No.1127/2025 under Section 173 of Motor Vehicles Act, 1988 before the High Court of Gujarat, which was dismissed on 02.03.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 173
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High Court High Court of Gujarat Dismisses Appeal by UPSRTC in Motor Accident Claim — Negligence of Bus Driver Proved. Corporation Liable as Owner of Offending Vehicle Under Section 166 of Motor Vehicles Act, 1988.