Gujarat High Court Allows Appeal in Motor Accident Claim — Enhances Compensation for Injured Driver Due to Erroneous Income and Disability Assessment. Tribunal's Assessment of Income at Rs.3,000/- and Disability at 10% Set Aside; Functional Disability Assessed at 30% with Future Prospects.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 02:52:23

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Case Note & Summary

The appellant, Babusing Parbatsing Rathod, was a driver of a jeep involved in a motor accident on 01.05.2008. He sustained grievous injuries to his right leg and other body parts. He filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation of Rs.6,00,000/-. The Motor Accident Claims Tribunal (Auxi.) Deodar, Banaskantha, by judgment and award dated 25.02.2021, awarded Rs.1,50,000/- as compensation. The appellant challenged the award on the ground that the Tribunal erred in assessing his income at Rs.3,000/- per month instead of Rs.4,500/- as per the salary certificate, and assessed disability at 10% instead of considering the functional disability. The High Court, after hearing the parties, held that the Tribunal's assessment of income was erroneous as the salary certificate showed Rs.4,500/- per month. The Court also noted that the injury to the right leg affected the appellant's ability to work as a driver, and thus functional disability should be 30%. Applying future prospects of 40%, the Court recalculated the compensation. The High Court allowed the appeal, enhancing the compensation to Rs.3,00,000/- with interest at 7.5% per annum from the date of petition till realization.

Headnote

A) Motor Accident Claims - Compensation Assessment - Income Proof - The Tribunal erred in assessing the income of the appellant at Rs.3,000/- per month despite documentary evidence of Rs.4,500/- per month - The High Court held that the income should be assessed based on the salary certificate and evidence on record (Paras 5-6).

B) Motor Accident Claims - Disability Assessment - Functional Disability - The Tribunal assessed disability at 10% without considering the nature of injury and its impact on the appellant's occupation as a driver - The High Court held that functional disability should be assessed at 30% considering the grievous injury to the right leg (Paras 7-8).

C) Motor Accident Claims - Future Prospects - Addition of 40% - The High Court applied the principle of future prospects as per settled law, adding 40% to the assessed income for calculating loss of future earning capacity (Para 9).

Issue of Consideration

Whether the Tribunal erred in assessing the income of the appellant and the percentage of disability, and whether the compensation awarded was just and proper.

Final Decision

The appeal is allowed. The judgment and award dated 25.02.2021 passed by the Motor Accident Claims Tribunal (Auxi.) Deodar, Banaskantha in MACP No.1251 of 2015 is modified. The appellant is entitled to total compensation of Rs.3,00,000/- with interest at 7.5% per annum from the date of petition till realization. The respondents are directed to deposit the enhanced amount within eight weeks.

Law Points

Motor Accident Claims
Compensation Assessment
Income Proof
Functional Disability
Future Prospects

Case Details

2026 LawText (GUJ) (01) 280

R/FIRST APPEAL NO. 3378 of 2022

2026-01-23

Hasmukh D. Suthar

MR ANKIT SHAH(6371) for the Appellant(s) No. 1, MR NAGESH C SOOD(1928) for the Defendant(s) No. 3

Babusing Parbatsing Rathod

Satishkumar Vinodbhai Patel & Ors.

Nature of Litigation

First appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation for injuries sustained in a motor accident.

Remedy Sought

Enhancement of compensation from Rs.1,50,000/- to Rs.6,00,000/-.

Filing Reason

The appellant was dissatisfied with the Tribunal's assessment of income and disability, leading to inadequate compensation.

Previous Decisions

The Motor Accident Claims Tribunal (Auxi.) Deodar, Banaskantha, by judgment and award dated 25.02.2021, awarded Rs.1,50,000/- as compensation.

Issues

Whether the Tribunal erred in assessing the income of the appellant at Rs.3,000/- per month? Whether the Tribunal erred in assessing the disability at 10% instead of considering functional disability? Whether the appellant is entitled to enhancement of compensation?

Submissions/Arguments

The learned advocate for the appellant submitted that the impugned judgment and award is erroneous, illegal, and contrary to facts and law. The Tribunal failed to consider the salary certificate showing income of Rs.4,500/- per month. The Tribunal assessed disability at 10% without considering the nature of injury and its impact on the appellant's occupation as a driver.

Ratio Decidendi

The Tribunal's assessment of income and disability was erroneous; income should be based on documentary evidence, and functional disability should consider the nature of injury and occupation. Future prospects of 40% are applicable.

Judgment Excerpts

The learned Tribunal has erred in assessing the income of the appellant at Rs.3,000/- per month despite documentary evidence of Rs.4,500/- per month. The Tribunal assessed disability at 10% without considering the nature of injury and its impact on the appellant's occupation as a driver. The High Court held that functional disability should be assessed at 30% considering the grievous injury to the right leg.

Procedural History

The appellant filed MACP No.1251 of 2015 (Old MACP No.4092 of 2009 and MACP No.165 of 2009) before the Motor Accident Claims Tribunal (Auxi.) Deodar, Banaskantha, which awarded Rs.1,50,000/- on 25.02.2021. Aggrieved, the appellant filed the present first appeal before the High Court of Gujarat.