Gujarat High Court

Minimum wages must be considered for reassessing notional income in motor accident claims absent specific evidence.

Minaben Karsanbhai Patel v. Karsanbhai Maganbhai Patel & Ors. [R/First Appeal No. 2066 of 2025]

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

Facts

On June 11, 2016, the appellant-claimant sustained grievous injuries and fractures when a Chevrolet Spark car driven by her husband in a rash and negligent manner collided with a rickshaw.

Source reference: para. 3

The appellant filed MAC Petition No. 444 of 2017 before the Motor Accident Claims Tribunal (Aux), Kheda at Nadiad.

Source reference: para. 1, 3, 8

The Tribunal partly allowed the claim, awarding ₹4,00,000/- against a claim of ₹7,00,000/-, assessing the appellant’s notional income at ₹5,000/- per month and disability at 25%.

Source reference: para. 1, 3, 8

Dissatisfied with the quantum of compensation, the claimant preferred this appeal under Section 173 of the Motor Vehicles Act, 1988.

Source reference: para. 1
02

Issues

1. Whether the Tribunal erred in assessing the appellant’s income at ₹5,000/- per month instead of considering the prevailing minimum wages and the claimant's alleged profession.

Source reference: para. 4, 7

2. Whether the appellant is entitled to enhancement of compensation under the heads of future loss of income and actual loss of income.

Source reference: para. 9, 12
03

Law Applied

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

Source reference: para. 1

It relied on the precedent set in *Govind Yadav v. National Insurance Co. Ltd.* (2012), which mandates that in the absence of documentary proof of income, the Tribunal must consider prevalent minimum wages.

Source reference: para. 7

For the computation of future loss of income, the Court applied the multiplier system established in *Sarla Verma v. Delhi Transport Corporation* (2009).

Source reference: para. 9

Additionally, it considered the principles regarding disability assessment from *D. Sampath v. UII Com. Ltd.* (2011) and *Rudra v. Divisional Manager* (2011).

Source reference: para. 8
04

Reasoning

The High Court found that while the claimant failed to produce evidence of her ₹20,000/- monthly income, the Tribunal’s assessment of ₹5,000/- was lower than the government-approved minimum wage of ₹7,700/- prevailing in June 2016.

Source reference: para. 7, 9

The Court upheld the 25% permanent partial disability assessment and the multiplier of 7 (based on the claimant's age of 61).

Source reference: para. 8-9

Applying the corrected income of ₹7,700/-, the Court recalculated the future loss of income as ₹1,61,700 (7,700 x 12 x 7 x 25%) and the actual loss of income for three months as ₹23,100.

Source reference: para. 9, 12, 13

The Court determined that no future prospective income additions were required due to the claimant’s age.

Source reference: para. 9

Other conventional heads like pain and medical expenses were found to be just and proper.

Source reference: para. 11
05

Holding

The High Court partly allowed the appeal, modifying the judgment dated 11.03.2025.

It enhanced the total compensation from ₹4,00,000/- to ₹4,64,800/-, awarding an additional amount of ₹64,800/- with proportionate costs and interest.

Source reference: para. 12-13

The Court directed respondent No. 3 (Insurance Company) to deposit the additional amount within four weeks and ordered the Tribunal to disburse the funds via RTGS/NEFT after deducting deficit court fees.

Source reference: para. 13-14
Gujarat High Court

Original Court PDF

Minaben Karsanbhai Patel v. Karsanbhai Maganbhai Patel & Ors. [R/First Appeal No. 2066 of 2025]

Gujarat High Court · no citation

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment