Gujarat HC Raises Compensation For Two Crash Victims’ Families Despite Claimants Filing No Appeals, As Panchayat Remained Jeep’s Registered Owner After Auction

A jeep registered in the name of the Gondal Taluka Panchayat was involved in a collision with a motorcycle on 19 July 2007, killing the motorcycle’s rider and pillion rider.

The Panchayat contended that it had sold the jeep at public auction before the accident and that the purchaser had taken possession, but it had not notified the RTO of the transfer.

The Tribunal held the Panchayat liable as the registered owner and awarded compensation of Rs. 31,29,600 for the pillion rider’s death and Rs. 20,84,000 for the rider’s death.

The Panchayat appealed; the claimants did not appeal, but sought recalculation of compensation during the appeals.

The Court applied the principle that, for motor-accident compensation liability, the registered owner remains liable where the transfer of the vehicle has not been notified to the RTO as required; a private sale and delivery of possession do not, without completion of that obligation, relieve the registered owner of liability.

For quantification, the Court applied National Insurance Co. Ltd. v. Pranay Sethi, under which future prospects and conventional heads of compensation are assessed according to the deceased’s circumstances, and relied on Reena v. Managing Director, Karnataka State Road Transport Corporation for the consortium amounts.

The Court also stated that it must ensure just compensation even where the claimants have not appealed.

The Panchayat’s auction sale and the purchaser’s possession did not displace the Panchayat’s liability because the Panchayat admitted that it had not informed the RTO of the transfer; it therefore remained the registered owner at the time of the accident.

On quantum, the Court found that the Tribunal had used pre-revision salaries despite evidence of revised pay scales.

It recalculated the pillion rider’s monthly income at Rs. 21,331 and the rider’s at Rs. 16,352, then applied 30% future prospects, a one-fourth deduction for personal expenses, and a multiplier of 13.

It also recalculated consortium, loss of estate, and funeral expenses under the cited precedents.

For the pillion rider’s death, it fixed total compensation at Rs. 35,71,332, an enhancement of Rs. 4,41,732; for the rider’s death, it fixed total compensation at Rs. 28,38,108, an enhancement of Rs. 7,54,108.

The Panchayat was directed to deposit the enhanced sums with 9% interest from the respective claim-petition dates, within eight weeks of receiving the judgment; disbursement was directed by NEFT/RTGS after verification.

The Panchayat may pursue proceedings against the auction purchaser.