Gujarat High Court

Minimum wages must determine notional income in absence of proof, and interest cannot be denied before framing of issues.

MINOR HIRALBEN SUMATBHAI PALAS vs SAJIDKHAN MEHMUDKHAN PATHAN

Gujarat High CourtJUDGMENT: April 16, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On August 20, 2013, Sumatbhai Mathurbhai Palas ("the deceased") died from injuries sustained when a bus (Registration No. GJ-06-X-9781) driven by Respondent No. 1 crashed into a road divider near Kamrol Village

Source reference: p. 2

The appellants (original claimants) filed M.A.C.P. No. 1572 of 2017 seeking ₹12,00,000/- in compensation, claiming the deceased earned ₹9,000/- per month from centering and agricultural work

Source reference: p. 2

The Motor Accident Claims Tribunal (MACT), Limkheda, awarded ₹7,50,400/- with 8% interest, but disallowed interest for the period between October 7, 2014, and October 10, 2019

Source reference: p. 1, 3

The appellants challenged the quantum of compensation and the disallowance of interest

Source reference: p. 3
02

Issues

1. Whether the Tribunal erred in assessing the monthly income of the deceased in the absence of cogent evidence of earnings

Source reference: p. 5

2. Whether the original claimants are entitled to enhanced compensation under conventional heads such as loss of consortium, estate, and funeral expenses

Source reference: p. 3, 7

3. Whether the Tribunal was justified in disallowing interest for the period from 07.10.2014 to 10.10.2019

Source reference: p. 4, 8
03

Law Applied

The court applied the principles laid down by the Hon’ble Supreme Court in National Insurance Company Ltd. v. Pranay Sethi (2017), establishing standards for future prospects (40% for deceased aged 25) and fixed sums for conventional heads

Source reference: p. 4, 6, 7

It further utilized Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram (2018), which expanded "consortium" to include parental and filial consortium at ₹40,000/- per dependent (adjusted by 10% for inflation)

Source reference: p. 4, 7

Where income is not proved, courts rely on the minimum wages notified by the State Government for the relevant period

Source reference: p. 5

Regarding interest, the court held that interest cannot be disallowed for delay if issues were not framed to permit the leading of evidence

Source reference: p. 8
04

Reasoning

The High Court found the Tribunal’s assessment of ₹3,000/- monthly income too low. It reassessed the income at ₹5,500/- based on the Gujarat State minimum wage for skilled workers in 2013

Source reference: p. 6

Following Pranay Sethi, the court added 40% for future prospects (totaling ₹7,700/-) and deducted 1/3rd for personal expenses given the three dependents, resulting in a monthly dependency of ₹5,134/-

Source reference: p. 6

Applying a multiplier of 18, the future loss of dependency was calculated at ₹11,08,944/-

Source reference: p. 7

The court also awarded ₹48,400/- each to the daughter and parents for loss of consortium

Source reference: p. 7

Crucially, the court reversed the interest disallowance, noting that since issues were only framed on September 6, 2017, the claimants could not be penalized for prior "inactivity"

Source reference: p. 8
05

Holding

The High Court partly allowed the appeal, enhancing the total compensation from ₹7,50,400/- to ₹12,90,444/- (an increase of ₹5,40,044/-)

The court set aside the Tribunal’s order disallowing interest for the 2014–2019 period, holding that interest at 8% per annum is payable from the date of the claim petition until realization. Respondent No. 3 (Insurance Company) was directed to deposit the enhanced amount within six weeks

Source reference: p. 8, 9
Gujarat High Court

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MINOR HIRALBEN SUMATBHAI PALASvsSAJIDKHAN MEHMUDKHAN PATHAN

Gujarat High Court · April 16, 2026

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