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High Court of Gujarat

THE UNITED INDIA INSURANCE COMPANY LIMITEDversusRAJESHBHAI ALIAS RAJUBHAI RAMANBHAI PATEL

Disposal
44-PARTLY ALLOWED @ FH

Holding

The award of Rs.2,50,000 for loss of love and affection is contrary to settled law and must be excluded, reducing the total compensation to Rs.8,88,700.

Summary

The deceased was killed in a motor accident caused by a negligent trailer driver, and the claimants filed a petition under Section 166 of the Motor Vehicles Act. The Motor Accident Claims Tribunal awarded a total compensation of Rs.10,90,000, including Rs.2,50,000 for loss of love and affection and a 20% uplift on loss of estate and funeral expenses. The insurer appealed, contending that the award violated Supreme Court precedent in National Insurance Co. v. Pranay Shetty, which limits compensation to loss of dependency, loss of consortium, and loss of estate/funeral expenses. The High Court held that the Tribunal erred by granting loss of love and affection and by inflating other heads, and recalculated the award to Rs.8,88,700 in accordance with the Supreme Court guidelines. The appeal was partly allowed, the award reduced, and the insurer directed to pay the adjusted amount with interest.

Issues considered

  • Whether compensation for loss of love and affection is permissible under Section 166 of the Motor Vehicles Act in motor accident claims.
  • Whether the amounts awarded for loss of consortium, loss of estate and funeral expenses comply with the Supreme Court's guidelines in National Insurance Co. v. Pranay Shetty.
  • Whether the Motor Accident Claims Tribunal erred in its calculation of total compensation.

Legislation cited

Subjects

motor accidentcompensationloss of dependencyloss of consortiumloss of love and affectionMotor Vehicles ActSupreme Court precedentinsurance claimaward modification

Judgment

     C/FA/1878/2022                              JUDGMENT DATED: 22/01/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                      R/FIRST APPEAL NO. 1878 of 2022


FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
==========================================================

            Approved for Reporting               Yes          No

==========================================================
           THE UNITED INDIA INSURANCE COMPANY LIMITED
                               Versus
        RAJESHBHAI ALIAS RAJUBHAI RAMANBHAI PATEL & ORS.
==========================================================
Appearance:
MR RATHIN P RAVAL(5013) for the Appellant(s) No. 1
MR PARTH R KIKANI(10767) for the Defendant(s) No. 1,2,3
RULE SERVED for the Defendant(s) No. 4
==========================================================

    CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                             Date : 22/01/2026
                             ORAL JUDGMENT


1      This appeal has been preferred by the appellant-Insurance
Company against the judgment and award dated 29.01.2022
and decree dated 31.01.2022 passed by the Motor Accident
Claims Tribunal (Auxi.) Mrzapur at Ahmedabad, in Motor
Accident Claim Petition No.1035 of 2013.


2.     Heard learned advocates for the respective parties. Though
served, none appears for respondent No.4.

3.     The brief facts of the case are that the deceased was riding
a motorcycle when, upon reaching near the place of the accident,
the driver of the trailer drove the vehicle in a rash and negligent
manner and collided with the motorcycle, resulting in the



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     C/FA/1878/2022                         JUDGMENT DATED: 22/01/2026




accident. As a consequence, the deceased sustained fatal
injuries and succumbed thereto. The claimants thereafter
preferred a claim petition under Section 166 of the Motor
Vehicles Act before the Motor Accident Claims Tribunal.


4.     Learned advocate for the appellant submits that the
learned Tribunal has awarded exorbitant compensation without
considering the settled provisions of law. The appeal has been
filed on the ground that, in view of the law laid down by the
Hon’ble Apex Court in National Insurance Company vs Pranay
Shetty and Ors., reported in (2017) 16 SCC 680, an amount of
Rs.2,50,000/- awarded towards loss of love and affection,
without assigning any reasons, is required to be slashed down.
There are only two eligible legal heirs, and they are entitled only
to the maximum permissible amount towards loss of consortium;
no other heads are permissible. The learned Tribunal has also
awarded a 20% rise on the base compensation towards loss of
estate and funeral expenses, which is exorbitant and has been
separately awarded, making the same unwarranted. Therefore,
the said amounts are also required to be slashed down. Hence, it
is prayed that the appeal be allowed.

5.     Learned advocate for the respondents has opposed the
appeal on the ground that the learned Tribunal has not
committed any error and, therefore, no interference is warranted.
He has relied upon the decision reported in (2013) 7 SCC 476,
Vimal Kanwar v. Kishore Dan, and has argued that the
learned Tribunal has properly awarded compensation under the
head of loss of love and affection. He has, therefore, prayed for



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     C/FA/1878/2022                                     JUDGMENT DATED: 22/01/2026




dismissal of the appeal.


6.     Having heard the learned advocates for the respective
parties, and considering that the appeal is filed on a narrow
compass, upon perusal of and after considering the documents
on record, it appears that the learned Tribunal has awarded
compensation under different heads in paragraph 17 of the
impugned award as under:


Sr. No.       Particulars                                Amount in [Rs.]
1.            Loss of Dependency.                        7,56,000/-
2.            Loss of Estate, loss of consortium         84,000/-
              and funeral expenses.
3.            Loss of love and affection.                2,50,000/-
              Total                                      10,90,000/-

7.     Upon perusal of the record, it emerges that though the
learned Tribunal has placed reliance on the decision of the
Hon’ble Supreme Court in Pranay Shetty (supra) and has
referred to paragraph 15 thereof, wherein the principles
governing award of compensation are elaborately laid down, the
said    principles     have       been   ignored       while    computing            the
compensation. The calculation reflected in paragraph 17 of the
impugned          award     is,   therefore,       erroneous     and     calls       for
interference.


8.     Once the Hon’ble Supreme Court has conclusively settled
the law relating to award of compensation, no deviation or
contrary view is permissible. Further, after the pronouncement
of Pranay Shetty (supra), particularly paragraph 59 thereof, the


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      C/FA/1878/2022                                          JUDGMENT DATED: 22/01/2026




amounts payable under the conventional heads have been fixed.


9.      In the         present case, the               claimants       are   entitled      to
compensation            under     the    head      of     loss    of    consortium         at
Rs.48,200/- per claimant, i.e. Rs.96,400/- for two claimants,
and under the heads of loss of estate and funeral expenses at
Rs.18,150/- each, aggregating to Rs.36,300/-. Thus, the total
compensation payable under the conventional heads comes to
Rs.1,32,700/-. However, without assigning any reasons, the
learned Tribunal has awarded an amount of Rs.2,50,000/-
towards loss of love and affection, which is contrary to the
settled legal position and cannot be sustained. The said amount
is required to be excluded, and the compensation deserves to be
modified and recalculated as under:


     Sr. No.                  Particulars                              Amount [Rs.]
1               Loss of dependency.                              7,56,000/-
2               Loss of consortium.                              48,200x2=96,400/-
3               Loss of         estate    and          funeral 18150x2=36,300/-
                expenses.
                Total                                            Rs.8,88,700/-

10. For the reasons recorded above, the appeal is partly
allowed. The impugned judgment and award is hereby modified,
and the compensation amount of Rs. 10,90,000/- awarded
by the Tribunal is reduced to Rs. 8,88,700/-. Now the
claimant         is    entitled   to     receive        Rs.   8,88,700/-          towards
compensation with interest at the rate of 9% per annum from the
date of filing of the claim petition till realization. If the amount
has already been deposited by the Insurance Company, the



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       C/FA/1878/2022                                                 JUDGMENT DATED: 22/01/2026




 Insurance Company shall be entitled to recover the difference
 amount, i.e., Rs. 2,01,300/- The Insurance Company shall
 deposit the said amount of compensation 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 and amount, if any lying before this Court is ordered
 to be transmitted to the concerned Tribunal forthwith along with
 accrued interest, if any. The entire awarded amount be
 disbursed and released in favour of the claimants after due
 verification by transferring the said amount to the account of the
 claimants either by RTGS or NEFT mode.


          Award to be drawn accordingly.


                                                                    (HASMUKH D. SUTHAR,J)
 ALI




Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: ISTAYAK ALI(HC01093), PRIVATE SECRETARY, at High Court of Gujarat on 27/01/2026 17:07:40




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