Gujarat High Court Judgments — 2024

The High Court held that Income Tax Returns are statutory documents on which reliance must be placed to determine the annual income of the deceased, citing the Supreme Court's decision in Malarvizhi v/s. United India Insurance Co. Ltd. The Court found that the Tribunal erred in not considering the ITRs produced for assessment years 2019-2020, 2020-2021, and 2021-2022. The relevant ITR for determining future loss of income was for the assessment year 2020-2021, showing an annual income of Rs. 3,15,530/-. Applying a 10% prospective rise in income and a multiplier of 11 (for the deceased's age of 55 years), and deducting 1/3 for personal expenses, the annual dependency was calculated at Rs. 2,31,389/-. This resulted in a future dependency loss of Rs. 25,45,279/-, an enhancement of Rs. 10,93,279/- over the Tribunal's award of Rs. 14,52,000/-. The enhanced amount, with interest at 7.5% per annum, was directed to be deposited within eight weeks. Fifty percent of the enhanced amount is to be disbursed to the claimants, and the remaining fifty percent is to be invested in a fixed deposit for three years.

The High Court dismissed all three First Appeals. Regarding MACP No. 917 of 1992 (First Appeal No. 731 of 2003), the Court found no substance in the appeal for enhancement. It noted that the claimant had not lost his job or salary, and the disability did not cause job loss. The compensation awarded was considered just and reasonable, primarily for loss of amenities and enjoyment of life, even if termed as future loss of income by the Tribunal. For MACP No. 918 of 1992 (First Appeal No. 732 of 2003), the Tribunal's assessment of future economic loss for the deceased daughter, considering her age, disability, and multiplier, was deemed just and proper, with no case for enhancement. Similarly, for MACP No. 733 of 2003 (First Appeal No. 733 of 2003), the compensation awarded to the partner in Modi Gatubhai Manibhai & Company, considering her income and disability, was found to be just and proper, with no scope for enhancement. The judgment and award of the Tribunal were confirmed. The amount was to be paid with 9% interest. The share of the deceased daughter was to be paid equally to both parents. Both insurance companies were directed to deposit 50% of the award amount.