Gujarat High Court

Minimum wages must be adopted for notional income assessment in motor accident claims lacking documented earnings.

Jahiben Panchabhai Makwana & Ors. v. Naranbhai Masaribhai Daki & Ors. [R/First Appeal No. 2222 of 2025]

Gujarat High Court2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants are the legal heirs of Panchabhai Ukabhai Makwana, who died in a motor accident on October 31, 2021, when his motorcycle was struck by a speeding truck

Source reference: para. 3.0

The Motor Accident Claims Tribunal (MACT), Gir Somnath, awarded compensation of ₹16,33,752/- with 9% interest, after holding the deceased 10% accessorily liable for contributory negligence

Source reference: para. 1.0, 3.0

The claimants appealed to the High Court seeking a set-aside of the contributory negligence finding and an enhancement of the compensation quantum, arguing the Tribunal undervalued the monthly income and consortium

Source reference: para. 4.0
02

Issues

Whether the Tribunal erred in attributing 10% contributory negligence to the deceased motorcyclist

Source reference: para. 6.0

Whether the notional monthly income and the compensation under the heads of consortium and conventional heads require upward revision

Source reference: para. 4.0, 7.1
03

Law Applied

The court applied Section 173 of the Motor Vehicles Act, 1988 regarding appeals

Source reference: para. 1.0

Regarding negligence, it relied on *Bimla Devi v. HRTC* and *Parmeshwari Devi v. Amir Chand* to assess the standard of proof

Source reference: para. 6.0

For quantum assessment, it applied *Govind Yadav v. National Insurance Co. Ltd.* (minimum wages in absence of income proof)

Source reference: para. 7.1

*Sarla Verma v. Delhi Transport Corporation* (multiplier and deductions)

Source reference: para. 7.1

*National Insurance Co. Ltd. v. Pranay Sethi* (future prospects and conventional heads)

Source reference: para. 9.0

*Magma General Insurance Co. Ltd. v. Nanu Ram* read with *Janabai v. ICICI Lombard* (spousal, parental, and filial consortium for all dependents)

Source reference: para. 10.0
04

Reasoning

The Court upheld the 10% contributory negligence, noting the spot panchnama (Exh. 34) proved the deceased entered the highway from a service road without due care, violating Road Regulations

Source reference: para. 6.0

Regarding quantum, the Court found the Tribunal's assessment of ₹7,000/- monthly income too low.

Source reference: no citation

Based on 2021 minimum wages for agricultural work, it increased the income to ₹9,050/-

Source reference: para. 7.1

Applying a 40% future prospect hike, 1/5th deduction for personal expenses, and a multiplier of 16, the loss of dependency was recalculated to ₹19,46,112/-

Source reference: para. 8.0

Furthermore, the Court corrected the consortium award; instead of a lump sum, it granted ₹48,400 per dependent for all seven claimants, totaling ₹3,38,800/-, and adjusted conventional heads (estate and funeral) for inflation

Source reference: para. 9.0, 10.0, 11.0
05

Holding

The High Court partly allowed the appeal

It modified the award, increasing the net compensation from ₹16,33,752/- to ₹20,89,091/- (after deducting 10% for contributory negligence)

Source reference: para. 11.0

The Respondent No. 3 (Insurance Company) was directed to deposit the additional amount of ₹4,55,339/- with proportionate costs and interest within four weeks

Source reference: para. 11.0, 12.0

The Tribunal was instructed to realize deficit court fees on the enhanced amount before disbursement

Source reference: para. 13.0
Gujarat High Court

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Jahiben Panchabhai Makwana & Ors. v. Naranbhai Masaribhai Daki & Ors. [R/First Appeal No. 2222 of 2025]

Gujarat High Court

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