Gujarat High Court

Absence of salary proof necessitates use of prevailing minimum wages for calculating motor accident dependency compensation.

Maheshbhai Dhirubhai Makwana & Ors. v. Ranchhod Valji Dangar & Anr. [2026:GUJHC:5438]

Gujarat High CourtJUDGMENT: no citation2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On May 12, 2018, Rakesh Maheshbhai Makwana and his wife Ramilaben were riding a motorcycle when they were struck by a rashly driven truck, resulting in their deaths

Source reference: p. 2

The Motor Accident Claims Tribunal (Aux.), Kheda at Nadiad, partially allowed the claim petitions (MACPs 600 & 601 of 2018) via a common judgment dated February 6, 2024

Source reference: p. 1-2

The appellants challenged the award on the limited ground of quantum, specifically arguing that the Tribunal erred in fixing notional income at ₹6,000 p.m. instead of ₹9,000 p.m. and failing to award loss of consortium

Source reference: p. 2
02

Issues

1. Whether the Tribunal erred in assessing the notional income of the deceased persons and failing to apply prevailing minimum wages

Source reference: p. 4, 8

2. Whether the claimants are entitled to enhanced compensation under the heads of loss of consortium and conventional heads as per settled precedents

Source reference: p. 5, 9
03

Law Applied

The Court applied the principles from *Sarla Verma v. Delhi Transport Corporation* [2009 (6) SCC 121] for determining the multiplier and deductions for personal expenses

Source reference: p. 4, 7

It relied on *National Insurance Co. Ltd. v. Pranay Sethi* [2017 (16) SCC 680] to grant a 40% addition for future prospects and define conventional heads (loss of estate and funeral expenses)

Source reference: p. 4-5

Regarding undetermined income, the court applied *Govind Yadav v. National Insurance Co. Ltd.* [2012 (1) TAC 1 (SC)], holding that in the absence of salary proof, the prevailing minimum wages must be considered

Source reference: p. 4, 8

Furthermore, for loss of consortium, it applied the standards set in *Magma General Insurance Co. Ltd. v. Nanu Ram* [(2018) 18 SCC 130] and *Janabai v. ICICI Lombard Insurance Co. Ltd.* [2022 LiveLaw (SC) 666]

Source reference: p. 5
04

Reasoning

The High Court observed that while the claimants could not strictly prove a monthly income of ₹9,000, the Tribunal’s assessment of ₹6,000 was lower than the government-approved minimum wages for 2018, which stood at ₹7,910 p.m.

Source reference: p. 4, 8

The Court accepted the Tribunal’s use of 1/3rd deduction for personal expenses and an 18 multiplier based on the deceased's ages (approx. 22-23 years)

Source reference: p. 4, 7

For First Appeal 1816/2024 (husband's death), the Court added ₹96,800 for parental consortium, which the Tribunal had omitted

Source reference: p. 5

However, in First Appeal 1820/2024 (wife's death), the Court declined consortium to the father-in-law and mother-in-law as they did not fall under the entitled category for this specific head

Source reference: p. 9

The Court also adjusted conventional heads to ₹18,150 each to reflect current legal standards

Source reference: p. 5, 9
05

Holding

The Court partly allowed both appeals, enhancing the compensation.

In First Appeal 1816/2024, the total compensation was increased from ₹12,45,600 to ₹17,27,180 (an addition of ₹4,81,580)

Source reference: p. 6

In First Appeal 1820/2024, the compensation was increased from ₹14,31,590 to ₹18,16,370 (an addition of ₹3,84,780)

Source reference: p. 9

The Insurance Company was directed to deposit the additional amounts with interest as awarded by the Tribunal within four weeks

Source reference: p. 6, 10

Deficit court fees on the enhanced amounts are to be deducted before disbursement to the claimants

Source reference: p. 6, 10
Gujarat High Court

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Maheshbhai Dhirubhai Makwana & Ors. v. Ranchhod Valji Dangar & Anr. [2026:GUJHC:5438]

Gujarat High Court · no citation

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