Case Note & Summary
The appellants, original claimants, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 20.12.2024 passed by the Motor Accident Claims Tribunal (Main), Surendranagar, in MACP No.90/2022. The claimants sought enhancement of compensation for the death of Shivrajbhai Shantubhai Khachar, who died in a motor vehicle accident on 17.06.2022. The Tribunal had awarded Rs.10,52,000/- with 9% interest. The appeal was confined to quantum only, with no challenge to negligence or liability. The claimants argued that the Tribunal erred in assessing the deceased's income at Rs.7,500/- per month despite evidence of earning Rs.3 lakh per annum from agriculture and Rs.10,000/- per month from animal husbandry. They contended that at least minimum wages for 2022 should have been applied. Additionally, no compensation was awarded under the head of loss of consortium. The respondents opposed the appeal. The High Court, after hearing counsel, held that the Tribunal's income assessment was not based on any evidence and that in the absence of proof, the minimum wages for a skilled worker in 2022 (Rs.9,000/- per month) should be taken as notional income. The court also noted that the Tribunal failed to award loss of consortium to the widow. Applying the principles in National Insurance Co. Ltd. v. Pranay Sethi, the court awarded Rs.40,000/- for loss of consortium to appellant No.1. The court recalculated the compensation: income Rs.9,000/- per month, 40% future prospects, multiplier 13 (deceased aged 50), 1/4 deduction, resulting in Rs.12,28,500/- for loss of dependency. Adding Rs.40,000/- consortium, Rs.15,000/- loss of estate, and Rs.15,000/- funeral expenses, total compensation was enhanced to Rs.12,98,500/-. The award was modified accordingly, with the enhanced amount payable with 7.5% interest from the date of petition.
Headnote
A) Motor Accident Claims - Quantum of Compensation - Notional Income - Deceased was an agriculturist and animal husbandry worker - Tribunal assessed income at Rs.7,500/- per month without considering evidence of higher earnings - Held that in absence of proof, minimum wages for skilled labour in 2022 should be taken as notional income - Income reassessed at Rs.9,000/- per month (Paras 4-5). B) Motor Accident Claims - Loss of Consortium - Deceased aged 50 years - Tribunal failed to award consortium to widow - Held that each claimant is entitled to Rs.40,000/- under loss of consortium as per Pranay Sethi guidelines - Awarded Rs.40,000/- to appellant No.1 (Paras 5-6).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased at Rs.7,500/- per month and in not awarding compensation under the head of loss of consortium?
Final Decision
Appeal allowed in part. The impugned judgment and award is modified. The total compensation is enhanced from Rs.10,52,000/- to Rs.12,98,500/-. The enhanced amount of Rs.2,46,500/- shall carry interest at 7.5% per annum from the date of petition till realization. The respondents are jointly and severally liable to pay the enhanced amount. The award is modified accordingly.
Law Points
- Notional income assessment
- Minimum wages for unorganized sector
- Loss of consortium
- Motor Vehicles Act
- 1988 Section 173
