Gujarat High Court

Minimum wages must be considered for income assessment in motor accident claims absent documentary evidence.

Anandben Shivrajbhai Khachar & Ors. v. Nathubhai Bhikhabhai & Ors. [First Appeal No. 604 of 2025]

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

Facts

On June 17, 2022, Shirajbhai Shantubhai Khachar died after his motorcycle was struck from behind by a Bolero Pick-up driven in a rash and negligent manner.

Source reference: p. 2, 3.0

The legal heirs (Claimants) filed a petition seeking ₹25,00,000 in compensation.

Source reference: no citation

The Motor Accident Claims Tribunal (MACT), Surendranagar, awarded ₹10,52,000 with 9% interest.

Source reference: p. 2, 1.0

The Claimants appealed to the High Court solely on the ground of quantum, arguing that the deceased's income was undervalued and consortium was not awarded.

Source reference: p. 2-3, 4.0
02

Issues

Whether the Tribunal erred in assessing the monthly income of the deceased at ₹7,500 in the absence of documentary proof, given the prevalent minimum wages in 2022.

Source reference: p. 3-4, 7.1

Whether the Claimants are entitled to compensation under the head of loss of consortium as per prevailing legal precedents.

Source reference: p. 5, 10.0
03

Law Applied

The court applied the principles from *Govind Yadav v. National Insurance Co. Ltd.*, which mandates using prevalent minimum wages if no proof of income is available.

Source reference: p. 4, 7.1

It followed *National Insurance Co. Ltd. v. Pranay Sethi* regarding 25% future prospects and conventional heads.

Source reference: p. 4-5, 7.1, 9.0

The court applied *Sarla Verma v. Delhi Transport Corporation* for the 1/3rd deduction for personal expenses and a multiplier of 13 based on the deceased's age of 50.

Source reference: p. 4, 7.1

Regarding consortium, it relied on *Magma General Insurance Co. Ltd. v. Nanu Ram* and *Janabai v. M/s ICICI Lombard*, which establish the right to spousal and parental consortium.

Source reference: p. 5, 10.0
04

Reasoning

The Court found the Tribunal’s income assessment of ₹7,500 inadequate.

Source reference: no citation

Given the 2022 accident date, it reassessed the income based on minimum wages at ₹9,050 per month.

Source reference: p. 4, 7.1

Applying a 25% addition for future prospects (totaling ₹11,312) and deducting 1/3rd for personal expenses (leaving ₹7,542), the Court used a multiplier of 13 to calculate loss of dependency at ₹11,76,552.

Source reference: p. 4-5, 8.0

The Court further determined that the Tribunal failed to award consortium; consequently, it granted ₹48,400 for spousal consortium and ₹48,400 each for two sons as parental consortium.

Source reference: p. 5, 10.0-11.0

Conventional heads for estate and funeral expenses were adjusted to ₹18,150 each to reflect current standards.

Source reference: p. 5, 11.0
05

Holding

The High Court partly allowed the appeal, honeying the total compensation from ₹10,52,000 to ₹13,58,052.

The court held that the Claimants are entitled to an additional amount of ₹3,05,052 with proportionate costs and interest at 9% p.a.

Source reference: p. 6, 11.0

Respondent No. 3 (Insurance Company) was directed to deposit the enhanced amount within four weeks, and the Tribunal was instructed to deduct any deficit court fees before disbursement.

Source reference: p. 6, 12.0-13.0
Gujarat High Court

Original Court PDF

Anandben Shivrajbhai Khachar & Ors. v. Nathubhai Bhikhabhai & Ors. [First Appeal No. 604 of 2025]

Gujarat High Court · no citation

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