Gujarat High Court

Minimum wages and parental consortium must be considered for enhancement of motor accident death compensation.

RAMESHBHAI CHHAGANLAL MAHESURIYA vs MOHANLAL JETHALAL PUROHIT

Gujarat High CourtJUDGMENT: April 21, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On April 2, 2017, the deceased, Mehulkumar Rameshbhai Mahesuriya (aged 23), was traveling in a Chevrolet car when a truck, driven negligently at high speed, collided with the vehicle, resulting in his death

Source reference: p. 1-2

The claimants (parents) filed MACP No. 86/2017 seeking ₹35,93,000/- in compensation

Source reference: p. 2

The Motor Accident Claims Tribunal (MACT), Banaskantha, awarded ₹10,94,400/- with 9% interest, assessing the deceased's monthly income at a nominal ₹7,000/- due to lack of documentary proof

Source reference: p. 2-3

The claimants appealed to the High Court seeking enhancement of the quantum

Source reference: p. 2
02

Issues

1. Whether the Tribunal erred in assessing the monthly income of the deceased at ₹7,000/- in the absence of cogent evidence, rather than applying the prevailing minimum wage

Source reference: p. 4

2. Whether the claimants are entitled to enhanced compensation under the heads of loss of consortium and other conventional heads based on settled legal precedents

Source reference: p. 4-5
03

Law Applied

Per National Insurance Company Ltd. v. Pranay Sethi (2017), the court must include future prospects (40% for deceased under 40 years with notional income) and standardized conventional heads for loss of estate and funeral expenses

Source reference: p. 3-4

It further relied on Magma General Insurance Company Limited v. Nanu Ram @ Chuhru Ram (2018) to establish that "consortium" includes "filial consortium" payable to parents for the loss of a child

Source reference: p. 3, 5

For income assessment in the absence of evidence, the court applied the Minimum Wages notified by the Government of State for the relevant category and period

Source reference: p. 4
04

Reasoning

The Court noted that while the deceased's claimed income of ₹15,000/- was not proved, the Tribunal's assessment of ₹7,000/- was unfairly low. It held that the minimum wage for a skilled worker in Gujarat at the time of the accident (April 2017) was ₹8,388/-, which the court rounded to ₹8,400/-

Source reference: p. 4

Following Pranay Sethi, the Court added 40% for future prospects (totaling ₹11,760/-) and deducted 1/2 for personal expenses as the deceased was unmarried, resulting in a dependency of ₹5,880/- per month. Applying a multiplier of 18, the future loss of dependency was recalculated to ₹12,70,080/-

Source reference: p. 4-5

The Court observed that the Tribunal failed to award loss of consortium; per Magma General, it awarded ₹48,400/- to each parent (totaling ₹96,800/-). Additionally, the conventional heads for loss of estate and funeral expenses were adjusted to ₹18,150/- each to reflect standard increases

Source reference: p. 5
05

Holding

The Court partly allowed the appeal, increasing the total compensation from ₹10,94,400/- to ₹14,03,180/-

The claimants were awarded an additional sum of ₹3,08,780/- with interest at 9% per annum from the date of the claim petition's filing until realization. The Court directed the insurance company to deposit the additional amount within six weeks and ordered the Tribunal to disburse the same to the claimants after verifying court fees

Source reference: p. 6
Gujarat High Court

Original Court PDF

RAMESHBHAI CHHAGANLAL MAHESURIYAvsMOHANLAL JETHALAL PUROHIT

Gujarat High Court · April 21, 2026

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