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Bombay High Court

SHANKAR FAKIRA GAIKWAD AND ORSversusBABAN GOVIND CHOURE AND ORS

Disposal
PARTLY ALLOWED AND PARTLY DISMISSED

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

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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