C/FA/2836/2025 ORDER DATED: 19/12/2025 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/FIRST APPEAL NO. 2836 of 2025 ========================================================== USHABEN RILESHKUMAR CHADADE ( LHS OF VAIBHAV RILESHKUMAR CHADADE ) Versus SHANKARLAL HAMIRBHAI HUMBAL & ANR. ========================================================== Appearance: MR HIREN M MODI(3732) for the Appellant(s) No. 1 MS E.SHAILAJA(2671) for the Defendant(s) No. 2 NOTICE SERVED for the Defendant(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR Date : 19/12/2025 ORAL ORDER [1.0] Feeling aggrieved and dissatis4ed with the impugned judgment and award dated 12.03.2025 passed by the learned Motor Accident Claims Tribunal (Auxi.), at Anjar, District Kachchh (which shall hereinafter be referred to as "the Tribunal" for short) in Motor Accident Claim Petition No.16 of 2021, the appellant herein – original claimant has 4led present First Appeal under Section 173 of the Motor Vehicles Act, 1881 (for short “MV Act”), whereby the learned Tribunal has partly allowed the claim petition 4led by the present appellant and awarded compensation of Rs.16,57,500/- however, did not award interest on Rs.4,32,000/- i.e. future prospects. [2.0] Heard learned Advocate Mr. Hiren Modi for the appellant – original claimant and learned Advocate Ms. E. Shailaja appearing for respondent No.2 – insurance company of oFending vehicle. Perused the original record and proceedings. [3.0] It is the case of the appellant that on 27.11.2019, while the deceased son of claimant was returning from his job from C/FA/2836/2025 ORDER DATED: 19/12/2025 Gandhidham to Anjar on his motorcycle No.GJ-12-BL-8949, on Truck No.GJ-12-AY-4302 came at the place of accident with full speed in rash and negligent manner and coming on wrong side dashed with the motorcycle of the deceased pursuant to which the deceased having sustained serious injuries died. Therefore, the appellant – original claimant – mother of deceased 4led MAC Petition seeking compensation wherein the learned Tribunal after appreciating the evidence produced on record was pleased to partly allow the claim petition by awarding compensation of Rs.16,57,500/- however, did not award interest on Rs.4,32,000/- i.e. future prospects. Being aggrieved with the said exclusion of interest in the impugned judgment and award, the present appellant – original claimant has 4led the present appeal. [4.0] Learned Advocate Mr. Hiren Modi appearing for the appellant – original claimant has assailed the impugned judgment and award only to the extent it has not awarded interest on the amount of future prospects. He has further submitted that learned Tribunal ought to have awarded interest at the rate of 9% per annum instead of 6% and that too not on the amount towards future prospects. Hence, he has requested to allow the present First Appeal. [5.0] Per contra, learned advocate Ms. E. Shailaja for the respondent – insurance company of the oFending vehicle has opposed the present appeal by submitting that the learned Tribunal has not committed any error in not awarding the interest on the future prospects of the deceased. She has further opposed the claim of the appellant to award interest on future prospects by submitting that compensation under the head of future prospects in any event is an amount received in advance, normally inuring to the bene4t of the claimants only in C/FA/2836/2025 ORDER DATED: 19/12/2025 future and therefore, she has requested to dismiss the present appeal. [6.0] Since present appeal is 4led raising limited issue of non-grant of interest on the awarded amount of future prospects, present appeal is considered on the said limited issue only. [7.0] Having heard the learned Advocates for the respective parties and perusing the record as well as the impugned judgment and award, it appears that the learned Tribunal after considering the evidence on record i.e. aMdavit of claimant at Exh.24, Aadhar Card (Exh.39), school leaving certi4cate (Exh.47) of the deceased has considered the age of the deceased at 19 years at the time of accident. Further, the said witness has stated that deceased was doing service at Shri Shipping Services, Gandhidham as Supervisor and was earning Rs.18,000/- per month for which claimant has produced the salary slip of the deceased for the months of August, 2019, September, 2019, October, 2019 however, as no witness was examined to prove the factum of income of the deceased, the claimant stated in her evidence that some amount was given in cash and some was deposited in bank account however, she could not prove the entire income of the deceased and therefore, the learned Tribunal considered monthly income of the deceased at Rs.10,000/- and thereafter relying on the decision of the Hon’ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Shethi reported in (2017) 16 SCC 680, the learned Tribunal has assessed 40% escalation towards future prospects of the deceased and therefore, monthly prospective income of the deceased was assessed at Rs.14,000/- (Rs.10,000 + 40% of Rs.10,000/-) and therefore, yearly prospective income of the deceased was assessed at Rs.1,68,000/-. Further, deducting ½ amount towards personal expenses as deceased was having only dependent i.e. his mother – C/FA/2836/2025 ORDER DATED: 19/12/2025 appellant herein, the amount came to Rs.84,000/-. Further, in view of decision of Hon’ble Supreme Court in the case of Sarla Verma (Smt) & Ors. Vs. Delhi Transport Corporation & Anr. [2009 (6) SCC 121], the learned Tribunal applied multiplier of 18 as the deceased was aged 19 years i.e. in the age group of 15 to 20. Applying multiplier of 18, prospective loss of income to the claimant came to Rs.15,12,000/- (Rs.84,000 x 18). [7.1] So far as other heads are concerned, the learned Tribunal has awarded Rs.16,500/- each under the head of Loss of Estate and Funeral expenses and Rs.62,500/- towards medical expenses and Rs.50,000/- towards loss of love and aFection. It is pertinent to note that as against the compensation awarded under these heads, there is no dispute raised by the appellant – claimant. Accordingly, the learned Tribunal awarded Rs.16,57,500/- in total under all the heads. However, the learned Tribunal in the operative portion of the impugned judgment and award has held that claimant shall not be entitled to interest on the amount of future prospective income of the deceased i.e. Rs.4,32,000/- [Rs.4000 (40% of Rs.10,000) x 12 x 18 (Multiplier)]. But the learned Tribunal has not given any reason while holding so. Hence, to that extent the learned Tribunal has committed an error. [7.2] Herein, the claim petition was 4led in the year 2019 however, the impugned judgment and award is passed in the year 2025 and the said delay cannot be attributed to the appellant – claimant as laws delays cannot, without proper substantiation, be cast upon the shoulders of one or other party to the lis and in that circumstance necessarily interest must run from the date of 4ling of the claim petition, to the date of payment for which precedents are legion. Learned advocate for the respondent – insurance company has C/FA/2836/2025 ORDER DATED: 19/12/2025 opposed the claim of the appellant to award interest on future prospects by submitting that compensation under the head of future prospects in any event is an amount received in advance, normally inuring to the bene4t of the claimants only in future. However, there was nothing stopping the Insurance Company from settling the claim on a computation, on receipt of intimation of the accident, especially since the determination of compensation for loss of dependency, on death being occasioned in a motor vehicle accident, can be determined as evident from the judicial precedents; at least provisionally. In this regard, reference is required to be made to the decision of the Hon’ble Supreme Court in the case of The Oriental Insurance Co. Ltd. vs. Niru @ Niharika & Ors. reported in 2025 LiveLaw (SC) 693. Hence, the impugned judgment and award to the extent it does not grant interest on the amount of Rs.4,32,000/- i.e. future prospects is required to be quashed and set aside. [8.0] In wake of aforesaid conspectus, present First Appeal is partly allowed. Impugned judgment and award dated 12.03.2025 passed by the learned Motor Accident Claims Tribunal (Auxi.), at Anjar, District Kachchh is modi4ed and it is held that the appellant – claimant shall be entitled to get interest on the entire amount of compensation and hence, respondent No.2 – New India Assurance Company Limited is directed to deposit entire amount of compensation i.e. Rs.16,57,500/- alongwith accrued interest at the rate of 6% per annum on the entire amount of compensation with the learned Tribunal within a period of FOUR WEEKS from the date of receipt of the present judgment. Rest of the impugned judgment and award remains unaltered. [9.0] After the aforesaid entire amount of compensation i.e. Rs.16,57,500/- alongwith interest at the rate of 6% p.a. on the entire C/FA/2836/2025 ORDER DATED: 19/12/2025 amount of compensation is deposited by the insurance company, learned Tribunal is directed to disburse the entire amount alongwith the interest on the entire amount of compensation i.e. Rs.16,57,500/-, to the original claimant, by account payee cheque / NEFT / RTGS, after proper veri4cation and after following due procedure. [10.0] While making the payment, the Tribunal shall deduct the courts fees, if not paid. [11.0] Record and proceedings, if any, be sent back to the concerned Tribunal, forthwith. (HASMUKH D. SUTHAR, J.) Ajay Original copy of this order has been signed by the Hon'ble Judge. Digitally signed by: AJAY CHANDRAN MENON(HC00939), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 19/12/2025 16:12:22