Case Note & Summary
The High Court of Gujarat considered a first appeal filed by the original claimant seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal (Auxiliary), Kheda at Nadiad in MACP No.1106/2001. The accident occurred on 29.12.2000, wherein the claimant sustained three fractures on his leg and underwent three surgical operations. The Tribunal, vide judgment dated 30.05.2013, awarded a total compensation of Rs.1,13,700 with 7.5% interest per annum. The claimant challenged the quantum on grounds that the Tribunal had adopted a notional income of Rs.1,800 per month instead of the minimum wages of Rs.2,100 prevailing at the time, and that the amounts under non-pecuniary heads were meagre. The insurance company supported the Tribunal's award. The High Court observed that since the claimant's actual income was not proved, the Tribunal ought to have applied the minimum wages notified by the Government of Gujarat, i.e., Rs.2,100 per month. Accepting the unchallenged functional disability of 20% and applying a multiplier of 9 applicable to the claimant's age of 60 years, the future loss of income was recalculated at Rs.45,360. The court enhanced compensation for pain, shock and suffering from Rs.15,000 to Rs.25,000, considering the nature of injuries; special diet, attendant charges and transportation from Rs.5,000 to Rs.15,000; and actual loss of income from Rs.5,400 to Rs.10,500 for five months. Medical expenses of Rs.66,700, based on bills, were left undisturbed. The total compensation thus arrived at was Rs.1,62,560, resulting in an additional amount of Rs.48,860 with the same rate of interest. The court further noted that the original claimant had expired during the pendency of the appeal, and directed that the legal representatives could be brought on record before the Tribunal for disbursement of the awarded amount. The appeal was partly allowed, and the insurance company was directed to deposit the additional compensation within six weeks.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Minimum Wages - Motor Vehicles Act, 1988 - Claimant failed to prove actual income of Rs.10,000/- per month; Tribunal considered notional income of Rs.1,800/-. Held that in absence of proof, minimum wages notified by the Government of Gujarat (Rs.2,100/- at the time of accident on 29.12.2000) should be taken as income. Reassessed income at Rs.2,100/- per month. (Paras 3, 5) B) Motor Accident Claims - Compensation - Future Loss of Income - Multiplier Method - Motor Vehicles Act, 1988 - Claimant aged 60, functional disability 20% (unchallenged). Multiplier 9 applied. Future loss computed as Rs.2,100 x 20% x 12 x 9 = Rs.45,360/-. (Para 5) C) Motor Accident Claims - Compensation - Pain, Shock and Suffering - Motor Vehicles Act, 1988 - Tribunal awarded Rs.15,000/- for three fractures and three surgeries; enhanced to Rs.25,000/- considering nature of injuries and hospitalization period. (Para 6) D) Motor Accident Claims - Compensation - Special Diet, Attendant Charges, Transportation - Motor Vehicles Act, 1988 - Tribunal awarded Rs.5,000/-; enhanced to Rs.15,000/- considering attending circumstances. (Para 7) E) Motor Accident Claims - Compensation - Actual Loss of Income - Motor Vehicles Act, 1988 - Tribunal awarded Rs.5,400/- for loss of income during treatment; enhanced to Rs.10,500/- for five months based on reassessed income. (Para 8) F) Motor Accident Claims - Procedure - Substitution of Legal Representatives - Motor Vehicles Act, 1988 - Claimant expired during pendency of appeal. Held that legal representatives may apply to Tribunal to be brought on record for disbursement of compensation. (Para 10)
Issue of Consideration
Whether the compensation awarded by the Tribunal was just and adequate, and whether notional income should be reassessed on the basis of minimum wages prevailing at the time of accident.
Final Decision
Appeal partly allowed. Compensation enhanced to Rs.1,62,560/-; additional compensation of Rs.48,860/- with 7.5% interest from date of claim petition till realization. Insurance company to deposit amount in 6 weeks. Legal representatives of deceased claimant to be brought on record for disbursement.
Law Points
- minimum wages income assessment
- functional disability multiplier method
- enhancement of non-pecuniary damages
- substitution of legal representatives
