Motor Accident Compensation Is Not Bonanza Or Jackpot; Claimant Not Entitled To Receive Medical Expenses Incurred By Trust: Gujarat High Court

The Gujarat High Court rendered such findings while considering an appeal filed under Section 173 of the Motor Vehicles Act, by the appellants – original claimants against the impugned judgment of the Motor Accident Claims Tribunal

Update: 2026-01-12 14:00 GMT
Justice Hasmukh D. Suthar, Gujarat High Court

While partly allowing a motor accident compensation appeal, the Gujarat High Court has held that the compensation under the Motor Vehicles Act is not a bonanza or a jackpot, and once medical expenses are incurred by a Trust, original claimants are not entitled to receive the said amount.

The High Court rendered such findings while considering an appeal filed under Section 173 of the Motor Vehicles Act, by the appellants – original claimants against the impugned judgment and award passed by the Motor Accident Claims Tribunal in a Claim Petition filed under Section 166 of the Motor Vehicles Act, 1988.

The Single Bench of Justice Hasmukh D. Suthar held, “So far as claim of claimants to award Rs.10,86,415/- which was paid by Shantaben Atmaramdas Patel Charitable Trust on behalf of the deceased is concerned, the said amount is to be paid to the said Trust however, there is no evidence in this regard and even otherwise the claimants owe the said amount to the said Trust and therefore, the claimants are not entitled to receive the said amount of Rs.10,86,415/- more particularly in view of the fact that compensation under the MV Act is not a bonanza or a jackpot and once expenses are incurred, original claimants are not entitled to receive the said amount.”

Advocate Vishal C Mehta represented the Appellant, while Advocate Kirti S Pathak represented the Respondent.

Factual Background

The accident took place in the year 2011, when the deceased, along with his friend, was going to Balotara in a car driven by the original opponent. A bus came from the service road to the main road, due to which the driver of the car applied sudden brake and the accident took place, wherein the deceased sustained serious multiple injuries. The deceased was taken to a government hospital, where the treatment went on for a few days, and thereafter, the deceased died during his treatment at home. The appellants – legal heirs and representatives of the deceased filed the claim petition, and the Tribunal, after appreciating the evidence, awarded the compensation of Rs 41,05,240. Being aggrieved with the quantum of compensation, the appellants filed the appeal for enhancement of compensation.

Reasoning

The Bench took note of the fact that the deceased came to be discharged from the Sterling Hospital, and the Tribunal had committed an error in not considering the medical bills. “Therefore, the claimants are entitled to an amount of Rs.2,52,899/- towards medical bill”, it stated.

One of the arguments raised by the petitioners was that the Tribunal ought to have considered the medical expenses which were incurred by one Shantaben Atmaramdas Patel Charitable Trust on behalf of the deceased. Dealing with this contention, the Bench held that once the expenses were incurred, the original claimants were not entitled to receive the said amount.

The Bench awarded a lump sum amount of Rs 50,000 towards attendant and transportation charges. Considering that the deceased was having four dependants and the Tribunal had awarded only Rs.44,000 towards loss of consortium, the Bench referred to the decision of the Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi reported in (2017) and held that the claimants would be entitled to get Rs.1,93,600 (Rs.48,400 x 4) towards loss of consortium.

The Bench thus awarded a total compensation of Rs 45,57,739. The Bench partly allowed the appeal and concluded the matter by directing the respondent to deposit the reassessed amount of compensation of Rs 45,57,739 alongwith accrued interest.

Cause Title: Lh of Decd Nileshbhai Mahendrabhai Vasant v. Jigar Babubhai Shah (Neutral Citation: 2026:GUJHC:1287)

Click here to read/download Order


Tags:    

Similar News