Bombay High Court
SHANKAR FAKIRA GAIKWAD AND ORSversusBABAN GOVIND CHOURE AND ORS
- Disposal
- PARTLY ALLOWED AND PARTLY DISMISSED
- Bench
- SANJAY A DESHMUKH
Holding
The claimants are entitled to Rs 40,000 each for loss of consortium, a 40% addition for loss of future prospects, and interest at 7% per annum on the enhanced compensation.
Summary
Chhaya Shankar Gaikwad died in a motor vehicle accident and her dependents filed a claim for compensation. The Motor Accident Claims Tribunal awarded compensation but omitted amounts for loss of future prospects and loss of consortium. On appeal, the High Court applied Supreme Court precedents (Magma General Insurance Co. Ltd. v. Nanu Ram and National Insurance Co. Ltd. v. Pranay Sethi) and held that the claimants are entitled to Rs 40,000 each for loss of consortium and a 40% addition for loss of future prospects, amounting to an enhanced compensation of Rs 11,21,600. The Court also reduced the interest rate on the award from 8% to 7% per annum. Accordingly, the appeal was partly allowed and the Tribunal’s award was modified to reflect the additional compensation and revised interest.
Issues considered
- Whether compensation for loss of consortium is payable to the dependents of a deceased motor accident victim.
- Whether a 40% addition for loss of future prospects should be made to the loss of dependency award.
- What rate of interest is appropriate on the enhanced compensation award.
- Whether the Motor Accident Claims Tribunal's award should be modified in light of Supreme Court jurisprudence.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order XLI Rule 33
Subjects
- Motor accident compensation
- Loss of consortium
- Loss of future prospects
- Interest rate
- Dependency loss
- Supreme Court precedent
- High Court appeal
Judgment
2026:BHC-AUG:28798
941 FA NO. 3233 OF 2021.odt
IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD
941 FIRST APPEAL NO. 3233 OF 2021
1. Shankar Fakira Gaikwad
Age: 38 years, Occu: Agri & Labour
2. Kaveri Shankar Gaikwad,
Age: 15 years, Occu: Nil
3. Payal Shankar Gaikwad,
Age: 13 years, Occu: Nil
4. Pallavi Shankar Gaikwad,
Age: 8 years, Occu: Nil
5. Sandesh Shankar Gaikwad,
Age: 7 years, Occu: Nil
(Applicant Nos.2 to 5 are minor through
natural guardin father i.e., applicant No.1)
6. Fakira Genu Gaikwad,
Age: 65 years, Occu: Nil
7. Latabai Fakira Gaikwad,
Age: 60 years, Occu: housewife
All R/o. Karjagaon, Taluka Newasa
District-Ahmednagar,
A/P Shendi, Tq.-Nagar, Dist. Ahmednagar ..Appellants
(Ori. Claimants)
VERSUS
1. Baban Govind Choure,
Age: 40 years, Occu: transport
R/o Shendi-Pokhardi,
Tq. Nagar District. Ahmednagar-414001
(Owner of Dumper No.MH16AE2447)
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2. Narayan Mokindrao Murkute,
Age: 39 years, Occu: Driver
R/o House No.23A, Navjivan colony
Ahmednagar-414111
(OR R/o Pisewadi PO: Pimpaldari,
Taluka, Gangakhed,
(Driver of Dumper)
3. The Manager,
The New India Assurance Company Ltd.
A/p Abbot Building, 2nd floor, near
Ashoka Hotel, Kings Road,
Ahmednagar-414001.
(Insurer of Dumper No.MH16AE2447) ..Respondents
(Ori. Opponents)
...
Mr. Abhijit C. Darandale, Advocate for Appellant
Mr. M. M. Ambhore, Advocate for Respondent No.3
….
CORAM : SANJAY A. DESHMUKH, J.
DATE : 02.07.2026
PER COURT :-
1. This appeal is preferred against the judgment and award
dated 15.06.2020 passed by the Motor Accident Claims Tribunal,
Ahmednagar in MACP No.309 of 2019.
2. Chhaya Shankar Gaikwad was the wife of claimant No.1,
the mother of claimant Nos.2 to 5, and the daughter-in-law of
claimant Nos.6 and 7. She died in a motor vehicular accident. The
claimants, being her dependents, filed a claim petition seeking
compensation under various heads. The learned Tribunal awarded
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compensation, however, it did not award any amount towards loss of
future prospects and loss of consortium. Hence, the claimants
preferred the present appeal.
3. Learned Advocate for the appellants-claimants pointed out
the pleadings, the evidence, the grounds of objections raised in the
appeal and the reasons and findings in the impugned judgment. He
submitted that the learned Tribunal has not awarded compensation
towards loss of future prospects and loss of consortium in accordance
with the settled principles of law laid down by the Hon’ble Supreme
Court in the case of Magma General Insurance Co. Ltd. v. Nanu Ram
@ Chuhru Ram and Others, (2018) 18 SCC 130. He, therefore,
prayed to award the compensation under the said heads.
4. Learned Advocate for respondent No.3 strongly opposed
the appeal and submitted that the compensation awarded by the
learned Tribunal is just and reasonable and does not warrant any
interference. He further submitted that the interest awarded by the
learned Tribunal @8% per annum is excessive. He, therefore, prayed
to reduce it to @7% per annum. He lastly prayed to dismiss the
appeal.
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5. Upon perusal of the impugned judgment and award, the
evidence on record, and the reasons recorded by the learned Tribunal,
it is crystal clear that no compensation has been awarded to claimant
Nos.1 to 5 under the head of loss of consortium. In view of the law
laid down by the Hon'ble Supreme Court in National Insurance Co.
Ltd. v. Pranay Sethi, claimant Nos.1 to 5 are entitled to compensation
of Rs.40,000/- each, i.e., total Rs.2,00,000/- towards loss of
consortium.
6. As far as future prospects is concerned, the law is well settled
that appropriate addition is required to be made while computing the
loss of dependency. Considering the age of the deceased Chhaya and
the facts of the present case, it would be just and proper to grant an
addition of 40% towards loss of future prospects in terms of the
principles laid down in Pranay Sethi (supra).
7. From the evidence on record, it is undisputed that the
deceased Chhaya was earning Rs.15,000/- per month. The learned
Tribunal has rightly deducted 1/5th of the income towards her
personal and living expenses. After such deduction, the monthly
contribution comes to Rs.12,000/-. The annual income, therefore,
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comes to Rs.1,44,000/-. By applying the multiplier of 16, the loss of
dependency comes to Rs.23,04,000/-. If 40% is added towards loss of
future prospects, the amount comes to Rs.9,21,600/-, for which the
claimants are entitled in addition to the compensation already
awarded. The claimant Nos.1 to 5 are also entitled to Rs.2,00,000/-
towards loss of consortium. Thus, the claimants are entitled to total
enhanced compensation of Rs.11,21,600/-.
8. As regards the rate of interest, learned Advocate for
respondent No.3-Insurance Company submitted that the interest
awarded by the learned Tribunal @ 8% per annum is excessive. He,
therefore, prayed that the rate of interest be reduced to 7% per
annum. Considering the peculiar facts and circumstances of the case
and the prevailing rates of interest offered by nationalized banks, this
Court is of the view that interest @ 7% per annum on the enhanced
amount of compensation would be just and proper. To this extent
also, the operative part of the impugned judgment and award
deserves to be modified in exercise of the powers conferred upon this
Court under Order XLI Rule 33 of the Code of Civil Procedure, 1908.
The appeal deserves to be partly allowed. The impugned judgment
and award deserves to be partly set aside. Hence, the following order:
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::ORDER::
a. The first appeal is partly allowed.
b. The impugned judgment and award is partly set aside and
modified as under:
c. The claimants are entitled to compensation of
Rs.9,21,600/- towards loss of future prospects. The
claimant Nos.1 to 5 are entitled to Rs.40,000/- each i.e.,
total Rs.2,00,000/- towards loss of consortium. Further,
the claimants are also entitled to interest @ 7% per annum
on the enhanced compensation from the date of the claim
petition till realization of the entire amount.
d. Clause (ii) of the operative part of the impugned judgment
and award shall stand modified to the extent that the
claimants shall be entitled to interest @ 7% per annum
from the date of the claim petition till realization of the
entire amount.
e. It is clarified that the claimants are not entitled to the
interest for the period of delay, if any, condoned by this
Court.
f. If court fee is not paid for enhanced amount of
compensation, the claimants shall pay deficit court fee.
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On receiving the same, the enhanced amount of
compensation be paid to them.
g. Award be drawn up accordingly.
h. The respondents are directed to deposit the enhanced
amount of compensation with accrued interest thereon in
this Court within three (03) months from today.
i. Pending civil applications, if any, are disposed of.
[ SANJAY A. DESHMUKH, J. ]
HRJadhav
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