NEW INDIA ASSURANCE CO LTD vs AMIRABEN DHANABHAI MADAM
- Court
- Gujarat High Court
C/FA/1030/2015 JUDGMENT DATED: 29/10/2026
(GJHC240419892015)
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1030 of 2015
With
R/CROSS OBJECTION NO. 102 of 2015
In
R/FIRST APPEAL NO. 1030 of 2015
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NEW INDIA ASSURANCE CO LTD
Versus
AMIRABEN DHANABHAI MADAM & ORS.
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Appearance:
MS DIMPLE A THAKER(6838) for the Appellant(s) No. 1
MR MTM HAKIM(1190) for the Defendant(s) No. 1,2,3,4
RULE SERVED for the Defendant(s) No. 10,6
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CORAM: HONOURABLE MR.JUSTICE N.S.SANJAY GOWDA
and
HONOURABLE MR.JUSTICE J. L. ODEDRA
Date : 29/10/2026
ORAL JUDGMENT
(PER : HONOURABLE MR.JUSTICE N.S.SANJAY GOWDA)
1. The occurrence of an accident on 17.9.2011 between
the motorcycle and the tanker is not in dispute. As a
result of this accident, the rider of the motorcycle, who
was 27 years old, suffered grievous injuries and
succumbed to the same.
2. As a result, the legal heirs of the deceased preferred
a claim petition and the Tribunal, by the impugned order,
has awarded a sum of Rs.21,33,500/- as compensation. In
arriving at this sum, the Tribunal has assessed the
monthly income of the deceased at Rs.8,000/- per month.
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C/FA/1030/2015 JUDGMENT DATED: 29/10/2026
(GJHC240419892015)
3. Being aggrieved by this award, the insurer filed the
First Appeal and the claimants filed Cross Objections.
4. The claimants contend that the sums awarded are
wholly inadequate, whereas the insurer contends that the
sums awarded are excessive.
5. The claimants in order to establish the income of the
deceased produced receipts to indicate the sums paid in
the name of the deceased for supplying milk to the
society. These receipts indicate that for the year 2009-10,
the deceased was paid a sum of Rs.8,45,000/- and for the
year 2010-11, he was paid a sum of Rs.6,50,000/-. In
other words, for the preceding two years prior to his
death, he had earned a sum of Rs.14 lakhs and for the
year in which he passed away, for a period of six months,
he had received a sum of Rs.3,68,000/-. This would,
therefore, indicate that he had an average annual income
of about Rs.7 lakhs from his milk business.
6. Having regard to the fact that there would also be
an expenditure component to the income in the milk
business, it cannot be in dispute that it would be
reasonable to hold that the claimant was earning at least
Rs.1,80,000/- as profit from the milk business, in which he
was engaged.
7. In the light of this assessment of ours, we will have
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C/FA/1030/2015 JUDGMENT DATED: 29/10/2026
(GJHC240419892015)
to hold that the monthly income of the deceased was
Rs.15,000/- and could not have been ascertained as
Rs.8,000/-. Since the deceased was aged 27 years, 40%
will have to be added as future prospects and a multiplier
of 17 will have to be applied. 1/4th amount would also be
deducted towards his personal expenditure.
Consequently, the claimants would be entitled to a sum of
Rs.32,13,000/- towards loss of dependency and a sum of
Rs.2,08,000/- towards loss of consortium.
8. Hence, as consequence, as per the ratio laid down
by the Supreme Court in the case of National Insurance
Company Ltd. v. Pranay Sethi and others reported in (2017)
16 SCC 680, the claimants would be entitled to the
following sums :
Income (15000 x 12) Rs.1,80,000/-
Prospective Income (40%) Rs.72,000/-
Total Rs.2,52,000/-
Deduction towards personal
expenses (1/4th)
- Rs.63,000/-
Total Rs.1,89,000/-
Multiplier X 17
Loss of Dependency Rs.32,13,000/-
Loss of Consortium
(52,000 X4)
+ Rs.2,08,000/-
Loss of Estate Rs.19,500/-
Funeral Expenses Rs.19,500/-
Grand Total Rs.34,60,000/-
Tribunal awarded Amount Rs.21,33,500/-
Enhanced Compensation Rs.13,26,500/-
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C/FA/1030/2015 JUDGMENT DATED: 29/10/2026
(GJHC240419892015)
9. The claimants are entitled to an additional sum of
Rs.13,26,500/- with 9% interest from the date of the
claim petition filed by the claimants before the Tribunal
till its realization. The enhanced amount shall be
deposited by the Insurance Company within a period of
TEN weeks from the date of receipt of copy of this order.
10. The enhanced amount which shall be deposited
pursuant to this order shall be disbursed to the claimants
upon proper verification by NEFT / RTGS.
11. The First Appeal as also the Cross Objection are
accordingly DISPOSED OF .
12. R & P if called for, be sent back to the concerned
Court forthwith.
Sd/-
(N.S.SANJAY GOWDA,J)
Sd/-
(J. L. ODEDRA, J)
OMKAR
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