Gujarat High Court

Reassessment of motor accident compensation based on bank-verified salary and enhanced conventional heads for dependents.

Binitadevi Jayprakash & Ors. v. Devabhai Nanubhai Thakor & Ors. [First Appeal No. 360 of 2025]

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

Facts

On January 15, 2017, the deceased, Jayprakash Ramashankar, was cycling on National Highway No. 8 when he was struck from behind by a tanker (Reg. No. GJ-12-AZ-9210) driven negligently by respondent No. 1.

Source reference: para. 3

The deceased succumbed to his injuries.

Source reference: no citation

The appellants (legal heirs) filed a claim under the Motor Vehicles Act, 1988.

Source reference: no citation

The Motor Accident Claims Tribunal (Aux.), Ankleshwar, awarded compensation on September 19, 2022, but assessed the deceased's monthly income at ₹12,000/- despite bank statements showing higher deposits.

Source reference: para. 5

The appellants sought enhancement of compensation regarding income assessment and conventional heads.

Source reference: para. 4
02

Issues

1. Whether the Tribunal erred in its assessment of the deceased's monthly income and future prospective income.

Source reference: para. 5

2. Whether the compensation awarded under conventional heads (loss of estate, funeral expenses, and consortium) was adequate under settled legal principles.

Source reference: paras. 7-8
03

Law Applied

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

Source reference: para. 1

It relied on *Sarla Verma v. Delhi Transport Corporation* [2009 (6) SCC 121] for determining the multiplier and deductions for personal expenses.

Source reference: para. 5

It applied *National Insurance Co. Ltd. v. Pranay Sethi* [2017 ACJ 2700] to establish standard amounts for conventional heads and future prospects.

Source reference: paras. 5, 7

Furthermore, it followed *Magma General Insurance Co. Ltd. v. Nanu Ram* [(2018) 18 SCC 130] and *Janabai v. M/s ICICI Lombard Insurance Co. Ltd.* [2022 LiveLaw (SC) 666] regarding the entitlement of each dependent to parental and filial consortium.

Source reference: para. 8
04

Reasoning

The High Court found the Tribunal's income assessment of ₹12,000/- unsupported by evidence, as the bank statement (Exh. 54) clearly showed monthly credits of ₹14,496/- from the employer.

Source reference: para. 5

The Court reassessed the monthly income at ₹14,450/- and maintained the 40% addition for future prospects since the deceased was under 40 years old.

Source reference: para. 5-6

Applying a 1/4 deduction for five dependents and a multiplier of 15, the Court re-calculated the dependency at ₹27,31,140/-.

Source reference: para. 6

Regarding conventional heads, the Court adjusted the amounts for inflation (10% increase as per *Pranay Sethi*) to ₹18,150/- each for loss of estate and funeral expenses.

Source reference: para. 7

Crucially, the Court held that all five claimants were entitled to ₹48,400/- each for loss of consortium, totaling ₹2,42,000/-, rather than the lump sum of ₹2,20,000/- awarded by the Tribunal.

Source reference: para. 8-9
05

Holding

The High Court partly allowed the appeal, modifying the Tribunal’s award to increase the total compensation from ₹25,21,000/- to ₹30,09,440/-.

The Court ordered the Insurance Company (Respondent No. 3) to deposit the additional amount of ₹4,88,440/- with proportionate interest within four weeks.

Source reference: para. 11

The Tribunal was directed to deduct any deficit court fees on the enhanced amount before disbursement to the claimants.

Source reference: para. 12
Gujarat High Court

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Binitadevi Jayprakash & Ors. v. Devabhai Nanubhai Thakor & Ors. [First Appeal No. 360 of 2025]

Gujarat High Court · no citation

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