Motor Accident Tribunal Duty Bound To Award 'Just Compensation': Gujarat High Court Enhances Award To ₹24 Lakh
The Gujarat High Court enhanced the compensation granted to the family of a deceased pillion rider to over Rs.24 Lakhs, noting that the Motor Accident Tribunal had not properly considered the deceased's monthly income as well as damages under general and non-pecuniary heads. [2026 LiveLaw (Guj) 255]
Justice JC Doshi observed that the tribunal should have a liberal approach while determining the quantum of compensation, as law values life and limb on a generous scale.
“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
The Tribunal is bestowed with duty to make an endeavour [sic] to award just compensation regardless of the amount claimed by the claimants. The determination of the quantum of compensation therefore, must be liberal and not niggardly since the law values life and limb in a free country in generous scale. Needless to state that money may be awarded, so that something tangible may be procured to reach something else of the like nature, which has been destroyed or lost, but money cannot renew physical frame that has been battered and shattered being a result of the road accident. Yet Tribunal to endavour to bring back victim to stage of pre-road accident as far as possible,” the Court said.
Expounding on the object of the Motor Vehicle Act, 1988, the Court further said that it is a beneficial Legislation wherein the concept of just and fair compensation is integral and seminal to the Act.
The case stemmed from a fatal accident on December 24, 2020, when the deceased, Jayeshbhai, was riding as a pillion passenger on a motorcycle. The driver of the two-wheeler allegedly drove recklessly and collided with another vehicle. Jayeshbhai suffered injuries and eventually died on December 27, 2020, while undergoing treatment at Civil Hospital in Ahmedabad.
His family members filed a claim petition before MACT, Nadiad seeking Rs 30 lakh in compensation. The tribunal awarded Rs 15,58,936. Aggrieved by the inadequate amount, the claimants filed the present appeal before the High Court.
After perusing the record and proceedings of the tribunal, the High Court said, “From the record, it transpires that the learned Tribunal has not properly considered monthly income of the deceased. Further, considering the ratio laid down by the Hon'ble Apex Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi reported in (2017) 16 SCC 680, the general and non-pecuniary damages, Rs.18,150/- each towards loss of estate and funeral expenses should be awarded.”
The Court further noted that towards loss of consortium, Rs 48,400 should be awarded to each of the four dependents as per the Supreme Court decision in United India Insurance Co. Ltd. v. Satinder Kaur (2021).
Accordingly, the High Court enhanced the compensation from Rs 15,58,936 to Rs 24,82,296 with 9% interest per annum from the date of filing the claim petition till its realisation, directing the insurance company to make the payment within six weeks.
Case: SONALBEN JAYESHKUMAR PARMAR & ORS. Versus MAHESHKUMAR KULABHAI PARMAR & ORS.
R/FIRST APPEAL NO. 875 of 2026
Citation: 2026 LiveLaw (Guj) 255