Dr. Anagha Bhupendra Kothadiya Vs Motiram Govind Budhwani (Bombay High Court)
The Bombay High Court decided an appeal filed by the original claimants seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Nashik, for the death of Dr. Bhupendra Kothadiya in a motor vehicle accident. The Tribunal had awarded compensation of ₹16,80,910 with interest by adopting the deceased’s average annual income after setting off losses under the head “Income from House Property” against income from business as reflected in the income tax returns.
The parties agreed that the Tribunal’s award required modification in light of the Supreme Court’s decision in National Insurance Company Limited vs. Pranay Sethi & Ors. regarding future prospects, consortium, and conventional heads. The High Court identified two principal issues for determination: whether the Tribunal was justified in adopting income after setting off house property losses against business income for calculating compensation under the Motor Vehicles Act, 1988, and whether interest should run only from the date on which the correct insurer was impleaded rather than from the date of filing the claim petition.
The claimants contended that interest paid on a housing loan, reflected as loss under the head “Income from House Property,” should not reduce the income considered for compensation and that only income tax and profession tax were deductible. The insurance company argued that such interest represented a reduction in the deceased’s disposable income and therefore should be deducted while computing compensation. The Court noted that all counsel agreed there was no prior judicial decision directly addressing this issue.
