Gujarat High Court

Notional annual income of deceased minor fixed at Rs.30,000 for accidents occurring in 1992.

INDIRABEN KRISHNALAL GHEEWALA (DECEASED) vs GAJANNAD TRAVELS PARTNER RAMESHBHAI B PATEL

Gujarat High CourtJUDGMENT: April 15, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants challenged the judgment and award dated 31.01.2013 passed by the Motor Accident Claims Tribunal, Palanpur

Source reference: p.1

On 30.08.1992, a luxury bus (GRW-9403) carrying pilgrims plunged into a gorge near Trishuliya Ghat after the driver lost control, resulting in the death of 7 passengers, including a 10-year-old girl

Source reference: p.2

The Tribunal initially awarded ₹96,060/- with 7.5% interest

Source reference: p.1-2

The appellants sought enhancement of compensation on the grounds that the notional income was assessed too low and future prospects and consortium were ignored

Source reference: p.3-4
02

Issues

1. Whether the learned Tribunal erred in assessing the notional income and future prospects of the 10-year-old deceased minor

Source reference: p.3-5

2. Whether the appellants are entitled to enhanced compensation under the heads of loss of estate, funeral expenses, and loss of consortium based on prevailing legal precedents

Source reference: p.4-7
03

Law Applied

The Court applied the precedent of Kishan Gopal v. Lala (2013), which established that for accidents involving minor children, a notional income of ₹30,000/- per annum is just and reasonable

Source reference: p.5-6

It further applied the principles for calculating future prospects (40%) and multiplier (15) from Sarla Verma v. Delhi Transport Corp. (2009) and National Insurance Company Ltd. v. Pranay Sethi (2017)

Source reference: p.4, 6

Additionally, the court followed Magma General Insurance Co. Ltd. v. Nanu Ram (2018) regarding the grant of compensation for loss of consortium to legal representatives

Source reference: p.4-5
04

Reasoning

The Court found the Tribunal’s assessment of the minor’s income at ₹700/- per month (₹8,400/- per annum) insufficient given the drastic devaluation of the rupee and the potential future contribution of the deceased

Source reference: p.5-6

Following Kishan Gopal, the Court determined the notional income at ₹30,000/- per annum

Source reference: p.6

Applying Sarla Verma, the Court added 40% for future prospects (₹42,000/-) and deducted 1/2 for personal expenses as the deceased was a bachelor, resulting in an annual dependency of ₹21,000/-

Source reference: p.6

Using a multiplier of 15, the loss of dependency was calculated at ₹3,15,000/-

Source reference: p.6

The Court also found the initial awards for funeral expenses and loss of estate to be "meagre" and adjusted them upward to ₹18,150/- each, while adding ₹48,400/- for loss of consortium as per the Pranay Sethi and Magma General Insurance standards

Source reference: p.7
05

Holding

The High Court partly allowed the appeal, modifying the original award to a total compensation of ₹3,99,700/-

Consequently, the respondent Insurance Company was directed to deposit an additional amount of ₹3,03,640/- with 7.5% interest per annum from the date of the claim petition until realization

Source reference: p.8

The Court ordered the disbursement of the amount to the claimants after verifying court fees

Source reference: p.9
Gujarat High Court

Original Court PDF

INDIRABEN KRISHNALAL GHEEWALA (DECEASED)vsGAJANNAD TRAVELS PARTNER RAMESHBHAI B PATEL

Gujarat High Court · April 15, 2026

Click to open original judgment

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

Click to open original judgment