UNITED INDIA INSURANCE COMPANY LIMITED.versusM D USMANRAZA
- Disposal
- 39-RULE DISCHARGED/DISMISSED @ FH
- Bench
- C DOSHI
Holding
The appeal is dismissed due to the smallness of the amount, and the insurer is liable to pay interest as the policy does not exclude such liability.
Summary
The appellant, United India Insurance Company Limited, challenged a compensation award of less than Rs.5 lakh granted to the respondents, MD Usmanraza and others. The appellant also disputed its liability to pay interest under the insurance policy. The High Court examined the appeal and noted that the amount involved was below the Rs.5 lakh threshold, deeming the appeal too minor to entertain. Consequently, the Court dismissed the appeal, stating that no legal issue was decided and the order should not serve as precedent. The Court also held that, as the policy contains no clause excluding interest, the insurer remains liable to pay interest. The civil application filed alongside was allowed, and the compensation, after deductions, is to be disbursed to the claimants.
Issues considered
- Whether a first appeal involving compensation less than Rs.5 lakh should be entertained.
- Whether the insurance company is liable to pay interest under the policy in the absence of an exclusion clause.
Subjects
Judgment
C/FA/2861/2016 ORDER DATED: 13/08/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2861 of 2016
With
CIVIL APPLICATION (FOR ORDERS) NO. 1 of 2025
In R/FIRST APPEAL NO. 2861 of 2016
==========================================================
UNITED INDIA INSURANCE COMPANY LIMITED.
Versus
M D USMANRAZA & ORS.
==========================================================
Appearance:
MR PALAK H THAKKAR(3455) for the Appellant(s) No. 1
NISARG DESAI, RITU AGGARWAL & PRAVALIKHA BATTHINI FOR
GANDHI LAW ASSOCIATES(12275) for the Defendant(s) No. 3
RULE SERVED for the Defendant(s) No. 1,2
==========================================================
CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 13/08/2026
ORDER
Order in Civil Application
Considering the averments made in the application, the
present application is allowed in terms of para 10(b) and
stands disposed of accordingly. Necessary amendment be
carried out forthwith.
Order in First Appeal
The captioned rst appeal, the amount of compensation
involved is below Rs.5 lakh.
Having heard the submissions made at bar by learned
advocate, the amount involved in the subject matter of
present First Appeal is on lower side i.e. less than
Rs.5,00,000/- and therefore, considering the smallness of the
awarded amount involved in the present appeal, the Court is
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C/FA/2861/2016 ORDER DATED: 13/08/2026
not inclined to entertain the present appeal and therefore,
present appeal stands dismissed on account of smallness of
amount. Consequently, CA, if any, does not survive and stands
disposed of accordingly. Interim relief, if any, stands vacated.
However, it is clari ed that dismissal of present appeal
shall not be construed that the Court has decided any legal
issue involved in the subject matter of present appeal and
therefore, the decision of present appeal shall not be treated
as precedent for deciding any legal issue.
Registry is directed to return back the R & P, if any, to
the concerned Court forthwith.
The learned concerned Court is directed to disburse the
amount of compensation, if any, deposited by the appellant-
Company, after deducting Court fee to the claimant/s after
due veri cation and identi cation along with interest and
after verifying his right to claim the compensation.
Apart from the smallness of the amount involved in the
matter, it appears that the Insurance Company has challenged
the issue of saddling it with the liability to pay interest.
However, on examining the policy on record, there is no
condition in the policy excluding the liability of the Insurance
Company to pay the interest in question. Therefore, the
challenge to that extent of such liability is not acceptable.
(J. C. DOSHI,J)
MANOJ
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: MANOJKUMAR(HC01092), PRIVATE SECRETARY, at High Court of Gujarat on 13/08/2026 18:49:49
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