MV Act Compensation Must Be Liberal And Not Niggardly: Gujarat High Court

The Gujarat High Court has reinforced the mandate for awarding 'just' compensation in motor accident claims, ruling that judicial determination of quantum must be liberal and grounded in realistic approximation rather than a narrow arithmetical approach. In an impactful decision, the Court emphasized that since the law values life and limb on a generous scale, the compensation for battered physical frames must be fair and equitable to meet the ends of justice.

Justice J. C. Doshi heard the appeal filed by a claimant who was dissatisfied with the compensation awarded by the Motor Accident Claims Tribunal, Godhra. The Court, while adopting a streamlined approach by bypassing undisputed factual aspects regarding the accident and liability, focused exclusively on the adequacy of the quantum awarded to the victim of the road accident.

Duty of Tribunals to Award Just Compensation

The Court, in its reasoning, observed: "The compensation to be awarded under the principle of just and fair compensation to the injured of the road accident or the legal representative/s of the deceased person is based on the principle of fairness, reasonableness and equability. Anguish of the heart or for mental turbulence being consequential result of the road accident cannot be actually compensated, but the quint essentiality lies in adopting holistic and pragmatic view to the computation of the compensation for the loss sustained, which is to be in the realm of realistic approximation. Although exact or perfect arithmetical calculation of compensation for reparation of the loss arrived from the road accident is almost impossible. The Tribunal is bestowed with duty to make an endevour to award just compensation regardless of the amount claimed by the claimant."

The Court further noted that while the award must be reasonable and not assessed with excessive moderation, it simultaneously cannot be a mere pittance. The objective remains to grant what is just, fair, and equitable.

The Court has the following directions:

"The opponents are directed to deposit the enhanced amount Rs.2,21,123/- with 9% p.a. interest from the date of claim petition till its realization jointly and severally before the concerned Tribunal, within a period of eight weeks from the date of receipt of this order. Rest of the direction(s) of the Tribunal remain same. The Tribunal shall disburse the entire awarded amount lying in the FDR and/or with the Tribunal, with accrued interest thereon, if any, to the claimant, by account payee cheque / NEFT / RTGS, after proper verification and after following due procedure. While making the payment, the Tribunal shall deduct the courts fees, if not paid, in accordance with rules/law."

Background

The appeal arose from a judgment and award dated 19.7.2024 passed by the Motor Accident Claims Tribunal, Godhra in Motor Accident Claim Petition No.8 of 2022. The appellant-claimant contended that the Tribunal committed an error by failing to properly calculate the compensation, specifically underestimating amounts for pain, shock, suffering, transportation, special diet, and medical expenses. The respondent, Gujarat State Road Transport Corporation (GSRTC), argued that the original award was just and proper.

Upon perusal of the record, the High Court found that the Tribunal had indeed erred in its assessment. The Court recalculated the future loss of income and other heads, resulting in an additional award of Rs. 2,21,123/- over and above the Rs. 2,39,643/- already awarded by the Tribunal. The appeal was partly allowed with a direction for the enhanced amount to carry 9% interest per annum.

Case Details:
Case No.: R/FIRST APPEAL NO. 4466 of 2025
Neutral Citation: 2026:GUJHC:59628
Case Title: Imrankhan Rasidkhan Pathan Versus Sureshbhai CHHAGANBHAI PARGI & ANR.
Appearances:
For the Petitioner(s): NISHIT A BHALODI(9597) for the Appellant(s) No. 1
For the Respondent(s): Tannmay Karia for the respondent GSRTC

Source: 2026 CaseBase(GUJ) 23835