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High Court of Gujarat

AJAYKUMAR CHANDUBHAI PARMARversusPRADIPKUMAR SHAILESHBHAI PATEL

Disposal
44-PARTLY ALLOWED @ FH

Holding

The appeal is partly allowed and the Tribunal's award is modified to increase the compensation to Rs 19,02,140.

Summary

The appellants, parents of a two‑year‑old child who died in a collision with an ST Corporation bus, appealed the Motor Accident Claims Tribunal's award under the Motor Vehicles Act, 1988. They contended that the Tribunal erred in calculating the child's notional income, using an incorrect multiplier and undervaluing the conventional heads of compensation. Relying on Supreme Court decisions, the High Court reassessed the child's income based on the 2023 minimum wages, applied a multiplier of 18 instead of 15, and recalculated loss of income, loss of estate, funeral expenses, and loss of consortium. The Court increased the future loss of income to Rs 17,69,040 and the total compensation to Rs 19,02,140, adding Rs 14,03,140 to the original award. The appeal was partly allowed, directing the respondent to pay the enhanced amount with interest within four weeks.

Issues considered

  • Whether the Tribunal correctly assessed the notional income of a minor deceased under the Motor Vehicles Act.
  • Whether the appropriate multiplier for future loss of income should be 15 or 18.
  • Whether the conventional heads of compensation (loss of estate, funeral expenses, loss of consortium) were correctly quantified.
  • Whether the minimum wages rate for 2023 should be used for calculating loss of income of a child.

Legislation cited

Subjects

Motor Accident ClaimCompensationLoss of Future IncomeMinor DeceasedMultiplierMinimum WagesMotor Vehicles ActTribunal Award Modification

Judgment

      C/FA/4217/2025                              JUDGMENT DATED: 08/01/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       R/FIRST APPEAL NO. 4217 of 2025


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

==============================================

              Approved for Reporting              Yes          No

==============================================
             AJAYKUMAR CHANDUBHAI PARMAR & ANR.
                              Versus
            PRADIPKUMAR SHAILESHBHAI PATEL & ANR.
==============================================
Appearance:
MS POOJA H HOTCHANDANI(7765) for the Appellant(s) No. 1,2
MR HS MUNSHAW(495) for the Defendant(s) No. 2
NOTICE NOT RECD BACK for the Defendant(s) No. 1
==============================================

     CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                              Date : 08/01/2026

                               ORAL JUDGMENT
1)      Feeling aggrieved and dissatisfied with the judgments and award

         dated 08.04.2025 passed by learned Motor Accident Claims

         Tribunal (Auxi.), Kheda at kapadwanj (which shall hereinafter be

         referred to as "the Tribunal" for short), in Motor Accident Claim

         Petition No.62 of 2023, the appellants – original claimants have

         preferred the present appeal under Section 173 of the Motor

         Vehicles Act, 1988 (which shall hereinafter be referred to as "the

         Act" for short).




                                   Page 1 of 6
     C/FA/4217/2025                               JUDGMENT DATED: 08/01/2026




2)     Heard Ms. P. H. Hotchandani learned Advocate for the appellants –

        original Claimants and Mr. H. S. Munshaw, learned Advocate for

        respondent – ST Corporation. Perused the original record and

        proceedings.


3)     It is the case of the appellants that on 31.05.2023, the daughter of

        applicant nos.1 and 2, namely Tanvi Ajaykumar parmar, (who shall

        hereinafter be referred to as “deceased”) was travelling on the

        motorcycle bearing Reg. No.GJ-07-CQ-6307, which was being

        driven at slow speed by the rider of the motorcycle, when they

        reached Kapadwanj – Dakor road, the driver of ST Bus bearing Reg.

        No.GJ-18-Z-8249, which was owned by opponent no.2 came driving

        the bus on the wrong side of the road at high speed, in rash and

        negligent manner and collided with the motorcycle of the deceased

        from the front side. As a result of which the deceased sustained

        grievous injuries and died on the spot. A complaint was lodged

        being I-C.R.No.11204028230211 of 2023, with Kapadwanj Police

        Station. Therefore, the appellants have filed MAC Petition seeking

        compensation, wherein, the learned Tribunal after appreciating the

        evidence produced on record has partly allowed the claim petition.


4)     The appeal is filed on limited ground that the learned Tribunal has

        committed error in assessing quantum by not considering the

        income of the deceased who was 2 years old at the time of accident

        as per the rate of minimum wages of the year 2023 and committed

        error by considering notional income as Rs.36,000/- per annum.



                                  Page 2 of 6
C/FA/4217/2025                                       JUDGMENT DATED: 08/01/2026




   The learned Tribunal has considered notional income as she was 02

   years old and even otherwise as per the ratio laid down by the

   Hon’ble Apex Court in the case of Kajal Vs. Jagdish Chand,

   reported in (2020) 4 SCC 413 and Baby Sakshi Greola Vs.

   Manzoor Ahmed Simon and Anr, reported in 2024 SCC OnLine

   SC 3692, and Hitesh Nagjibhai Patel Vs Bababhai Nagjibhai

   Rabari & Anr., Neutral Citation – 2025 INSC 1070, as per which

   the Hon’ble Supreme Court come to the conclusion and clarified

   that when the Tribunal or the High Court in appeal, is concerned

   with the case involving a child having suffered injury or passed

   away, the calculation of loss of income necessarily has to be made

   on the matric of minimum wages payable to a skilled worker in the

   respective State at the relevant point of time. Considering the

   aforesaid fact in the case on hand the learned Tribunal has

   considered    the   notional     income      of   the   deceased      child    at

   Rs.36,000/- per annum. In view of above, as per the rate of

   minimum wages at the relevant point of time and considering the

   age of the deceased the income of the deceased is reassessed as

   Rs.11,700/- per month. Further, the learned Tribunal has

   considered future prospective income as 40% and as the deceased

   was minor ½ deduction as personal expenditure and living of the

   deceased were considered by the learned Tribunal as per the

   judgment of the Apex Court in the case of Sarla Verma (Smt) &

   Ors. Vs. Delhi Transport Corporation & Anr. [2009 (6) SCC

   121] and National Insurance Company Ltd. Vs. Pranay Sethi,



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     C/FA/4217/2025                                JUDGMENT DATED: 08/01/2026




        reported in 2017 ACJ 2700, which are just and proper. However,

        the learned Tribunal has also committed error in considering the

        multiplier of 15, hence, as per the Sarla Verma (supra), the

        multiplier of 18 is required to be considered. Therefore, calculating

        the income of the deceased as Rs.11,700/- and future prospect of

        40% = Rs.4,680/- which comes to to Rs.16,380/- and ½ amount is

        required to be deducted as personal expenditure and living of the

        deceased which comes to Rs.8,190/- and the net amount comes to

        Rs.8,190/-. In view of above the amount under the head of future

        loss of income is required to be reassessed as Rs.8,190/- x 12 x 18

        = Rs.17,69,040/-. Therefore, the appellant is entitled to get

        additional amount of Rs.13,91,040/- towards future loss of

        income.




5)     Further, the learned Tribunal while relying on the judgment of

        Pranay Sethi (supra) has awarded total Rs.1,21,000/- under the

        three conventional heads, however, this Court is of the view that

        amount is required to be reassessed as Rs.18,150/- towards loss of

        estate, Rs.18,150/- towards funeral expenses and Rs.96,800/-

        (Rs.48,400/- X 2) towards loss of consortium. Therefore, the

        amount under the three conventional heads is reassessed as

        Rs.1,33,100/-. Therefore, the appellants are entitled for additional

        amount of Rs.12,100/- under the three conventional heads.




                                   Page 4 of 6
     C/FA/4217/2025                                      JUDGMENT DATED: 08/01/2026




6)     As discussed above, the appellants are entitled to get compensation

        computed as under:

                      Heads            Awarded by       Reassessed by this Court
                                         Tribunal
          Future loss of income        Rs.3,78,000/-           Rs.17,69,040/-
                                                             including additional
                                                        amount of Rs.13,91,040/-


           Loss of consortium           Rs.88,000/-              Rs.96,800/-
                                                             including additional
                                                             amount of Rs.8,800/-
              Loss of Estate            Rs.16,500/-             Rs.18,150/-
                                                             including additional
                                                             amount of Rs.1,650/-


            Funeral expenses            Rs.16,500/-              Rs.18,150/-
                                                             including additional
                                                             amount of Rs.1,650/-


           Total compensation          Rs.4,99,000/-           Rs.19,02,140/-
                                                        including total additional
                                                        amount of Rs.14,03,140/-



7)     In view of above, as the Tribunal has awarded total compensation

        of Rs.4,99,000/-, however, as discussed above the appellants are

        entitled       to   get   additional   amount   of    Rs.14,03,140/-          with

        proportionate costs and interest as awarded by the learned

        Tribunal.


8)     Hence, present appeal is partly allowed. The judgment and award

        dated 08.04.2025 passed by learned Motor Accident Claims

        Tribunal (Auxi.), Kheda at kapadwanj, in MAC Petition No.62 of




                                         Page 5 of 6
      C/FA/4217/2025                                                            JUDGMENT DATED: 08/01/2026




         2023 stands modified to the aforesaid extent. Rest of the judgment

         and       award         remains          unaltered.          The       respondent            No.2       –     ST

         Corporation               shall        deposit           said         additional            amount             of

         Rs.14,03,140/- along with interest as awarded by the Tribunal,

         before the Tribunal within a period of four weeks from the date of

         receipt of this order. Record and proceedings be remitted back to

         the concerned Tribunal forthwith.


9)       The learned Tribunal is directed to recover or deduct the deficit

         court fees on enhanced amount and thereafter disburse the amount

         accordingly.


10)      Award to be drawn accordingly.



                                                                            (HASMUKH D. SUTHAR,J)

ANKIT JANSARI
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: ANKIT YOGESHBHAI JANSARI(HCW0109), ENGLISH STENOGRAPHER GRADE I, at High Court of Gujarat on 08/01/2026 18:08:22




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