Gujarat High Court Partly Allows Appeals in Motor Accident Case — Notional Income Upheld but Loss of Consortium Awarded. Claimants Failed to Prove Higher Income of Deceased Couple, but Entitled to Rs.40,000 Each for Loss of Consortium Under Motor Vehicles Act, 1988.

High Court: Gujarat High Court
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Case Note & Summary

The present appeals arise out of a motor accident that occurred on 12.05.2018, wherein the deceased Rakesh Maheshbhai Makwana and his wife Ramilaben Rakesh Makwana sustained fatal injuries when a truck bearing registration No.GJ-12-BT-8289, driven rashly and negligently, dashed against their motorcycle. The appellants, being the legal heirs of the deceased, filed Motor Accident Claim Petitions No.600 and 601 of 2018 before the Motor Accident Claims Tribunal (Aux.), Kheda at Nadiad, seeking compensation. The Tribunal partly allowed the claim petitions, awarding compensation based on a notional income of Rs.6,000/- per month for the deceased, without any amount under the head of loss of consortium. Aggrieved by the quantum of compensation, the appellants preferred the present appeals under Section 173 of the Motor Vehicles Act, 1988, on the limited grounds that the Tribunal ought to have assessed the notional income at Rs.9,000/- per month, considering that the deceased-husband was employed at Vishalal Hotel and the deceased-wife was engaged in masonry work, and that the Tribunal erred in not awarding compensation for loss of consortium. The respondent Insurance Company opposed the appeals, contending that the Tribunal's assessment was correct in the absence of evidence of income. The Court, after hearing both sides and perusing the record, observed that the appeals were confined to the aspect of quantum, as liability was not challenged. Regarding the notional income, the Court noted that the claimants failed to produce any documentary evidence to substantiate the alleged income of the deceased. Consequently, the Court held that the Tribunal's assessment of notional income at Rs.6,000/- per month was just and proper, and no interference was warranted on that ground. However, the Court found merit in the contention regarding loss of consortium, as the Tribunal had not awarded any amount under that head. Relying on the principles laid down by the Supreme Court, the Court held that the claimants were entitled to Rs.40,000/- each for loss of consortium. Accordingly, the Court modified the award by adding Rs.40,000/- under the head of loss of consortium in each appeal, while confirming the rest of the award. The appeals were partly allowed, with the enhanced amount to be paid by the Insurance Company with interest at 7.5% per annum from the date of filing of the claim petitions.

Headnote

A) Motor Accident Compensation - Notional Income - Assessment of Income - Motor Vehicles Act, 1988, Section 173 - Appeal against Tribunal's award seeking enhancement of compensation on ground that Tribunal assessed notional income of deceased at Rs.6,000/- per month instead of Rs.9,000/- per month - Claimants alleged deceased-husband worked in hotel and deceased-wife did masonry work but no documentary evidence produced - Court held that in absence of evidence, notional income of Rs.6,000/- per month is just and proper - No interference warranted (Paras 5-10).

B) Motor Accident Compensation - Loss of Consortium - Award of Compensation - Motor Vehicles Act, 1988, Section 173 - Tribunal did not award any amount under head of loss of consortium - Court held that claimants are entitled to Rs.40,000/- each for loss of consortium - Award modified accordingly (Paras 11-12).

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Issue of Consideration

Whether the Tribunal erred in assessing the notional income of the deceased at Rs.6,000/- per month and in not awarding compensation under the head of loss of consortium.

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Final Decision

Both appeals are partly allowed. The notional income of Rs.6,000/- per month is confirmed. The award is modified by adding Rs.40,000/- under the head of loss of consortium in each appeal. The Insurance Company shall deposit the enhanced amount with interest at 7.5% per annum from the date of filing of the claim petitions within eight weeks.

Law Points

  • Notional income assessment
  • Loss of consortium
  • Motor accident compensation
  • Enhancement of compensation
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Case Details

2026 LawText (GUJ) (03) 996

R/First Appeal No. 1816 of 2024 with R/First Appeal No. 1820 of 2024

2026-03-05

Hasmukh D. Suthar

2026:GUJHC:16792

Mr. Hiren M Modi for Appellants, Ms. Karuna V Rahevar for Respondent No. 2

Maheshbhai Dhirubhai Makwana & Ors.

Ranchhod Valji Dangar & Anr.

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Nature of Litigation

Appeals against common judgment and award of Motor Accident Claims Tribunal seeking enhancement of compensation.

Remedy Sought

Appellants sought enhancement of compensation by reassessing notional income at Rs.9,000/- per month and awarding loss of consortium.

Filing Reason

Claimants were dissatisfied with the quantum of compensation awarded by the Tribunal, particularly the notional income assessment and non-award of consortium.

Previous Decisions

The Motor Accident Claims Tribunal (Aux.), Kheda at Nadiad, partly allowed MAC Petition Nos.600 and 601 of 2018 on 06.02.2024, awarding compensation based on notional income of Rs.6,000/- per month without loss of consortium.

Issues

Whether the Tribunal erred in assessing the notional income of the deceased at Rs.6,000/- per month instead of Rs.9,000/- per month. Whether the Tribunal erred in not awarding any amount under the head of loss of consortium.

Submissions/Arguments

Appellants argued that the deceased-husband was employed at Vishalal Hotel and the deceased-wife did masonry work, so notional income should be Rs.9,000/- per month, and that the Tribunal failed to award loss of consortium. Respondent Insurance Company argued that the Tribunal correctly assessed income in absence of evidence and opposed enhancement.

Ratio Decidendi

In motor accident compensation cases, in the absence of documentary evidence of income, the Tribunal's assessment of notional income is not to be interfered with. However, claimants are entitled to compensation for loss of consortium as per settled principles.

Judgment Excerpts

The appeals are filed on limited ground that the Tribunal has committed error in considering the income of the deceased as Rs.6,000/- p.m on notional basis and ought to have considered Rs.9,000/- p.m... In absence of any evidence, the Tribunal has rightly assessed the notional income of the deceased at Rs.6,000/- per month... The Tribunal has committed error in not awarding any amount under the head of loss of consortium... Hence, the claimants are entitled to Rs.40,000/- each for loss of consortium.

Procedural History

The Motor Accident Claims Tribunal (Aux.), Kheda at Nadiad, passed common judgment and award on 06.02.2024 in MAC Petition Nos.600 and 601 of 2018. Aggrieved, the claimants filed First Appeal Nos.1816 and 1820 of 2024 before the High Court of Gujarat under Section 173 of the Motor Vehicles Act, 1988. The High Court heard both appeals together and delivered a common oral judgment on 05.03.2026.

Acts & Sections

  • Motor Vehicles Act, 1988: 173
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