The Gujarat High Court has stepped in to correct what it found to be clear gaps in the assessment of compensation awarded to a family that lost its breadwinner in a road accident. Hearing a first appeal filed by the legal heirs of a deceased accident victim, the Court enhanced the compensation by more than ₹4.5 lakh, stressing that genuine medical expenses cannot be brushed aside without proper scrutiny.
The judgment was delivered by Justice Hasmukh D. Suthar on January 8, 2026.
Background of the Case
The case arose from a tragic accident on April 1, 2011. Nileshbhai Mahendrabhai Vasant was travelling in a car with a friend to attend a horse fair at Balotara. Near the Siddhpur–Palanpur Highway, a state transport bus suddenly entered the main road. The car driver braked sharply, lost control, and the vehicle overturned.
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Nileshbhai suffered multiple fractures, including serious head injuries. He was treated at government hospitals and later at Sterling Hospital in Ahmedabad. After prolonged treatment, he was discharged, but his condition did not improve. He passed away at home on February 28, 2012.
His legal heirs approached the Motor Accident Claims Tribunal (MACT), which in May 2021 awarded compensation of ₹41.05 lakh with interest. Dissatisfied with the quantum, particularly the treatment of medical bills and consortium, the family moved the High Court seeking enhancement.
What the Appeal Focused On
Importantly, the appeal did not question negligence or liability. The dispute was narrow but significant: whether the Tribunal had wrongly ignored certain medical bills, attendant expenses, and the correct amount payable towards loss of consortium.
Counsel for the claimants argued that several medical bills produced on record, amounting to over ₹2.5 lakh, were not considered at all. It was also pointed out that the deceased remained hospitalised for 64 days and required constant care, for which attendant and transport expenses were incurred.
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On the other hand, the insurance company maintained that the Tribunal had already assessed the evidence carefully and that no further enhancement was justified.
Court’s Observations
After examining the record, the High Court agreed with the claimants on key points. The bench noted that while the Tribunal considered expenses incurred during hospitalisation, it ignored medical bills generated after discharge, despite them being supported by documents.
“The expenditure sheets clearly show that certain medical bills were incurred after discharge and could not have been overlooked,” the Court observed.
On attendant and transport charges, however, the Court was cautious. It found that some bills appeared to overlap or were duplicated. Rather than accepting them at face value, the Court chose a balanced approach.
The Court also addressed the issue of consortium. It noted that the deceased had four dependants and that the amount awarded earlier did not align with the principles laid down by the Supreme Court. Applying settled law, the bench recalculated the consortium payable to each dependant.
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At the same time, the Court declined to include over ₹10.8 lakh spent by a charitable trust towards hospital expenses, observing that compensation under the Motor Vehicles Act is meant to reimburse actual loss suffered by claimants, not to result in double recovery.
Final Decision
Reassessing the figures, the High Court enhanced the total compensation from ₹41.05 lakh to ₹45.57 lakh, maintaining the interest rate at 7.5 percent per annum from the date of the claim petition.
The Court partly allowed the appeal and directed the insurer to deposit the enhanced amount with the Tribunal within four weeks. It further ordered that the entire amount, after due verification and deduction of court fees, be disbursed to the claimants through banking channels.
With this modification, the original award of the Tribunal stands altered only to the extent of enhancement, while the rest of the findings remain unchanged.
Case Title:- Legal Heirs of Deceased Nileshbhai Mahendrabhai Vasant vs. Jigar Babubhai Shah & Another
Case Number:- First Appeal No. 1743 of 2022
Date of Judgment:- 08 January 2026
