NEW INDIA ASSURANCE COMPANY LIMITEDversusZINABHAI CHANDRABHAI NAYKA
- Disposal
- 47-DISPOSAL IN ANY OTHER MODE FH
- Bench
- HASMUKH D SUTHAR
Holding
The First Appeal is dismissed because the compensation awarded is modest and reasonable, without addressing the merits of the case.
Summary
The New India Assurance Company Limited filed a First Appeal under Section 173 of the Motor Vehicles Act, 1988 against a Motor Accident Claim Tribunal award of Rs.4,70,000 to the road accident victim. The High Court examined the appeal and, noting the modest quantum of compensation, concluded that the award was just and reasonable. The Court dismissed the appeal solely on the ground of the small amount, without expressing any view on the merits or legal questions raised. It clarified that this dismissal does not preclude other proceedings arising from the same accident or judgment. The order also directed the record and any pending amounts to be transmitted to the Tribunal for disbursement to the claimants, with no order as to costs.
Issues considered
- What is the appropriate quantum of compensation in the motor accident claim?
- Whether the First Appeal under Section 173 can be dismissed solely on the basis of the small amount of award?
Legislation cited
- Motor Vehicles Act, 1988s. 173
Subjects
Judgment
C/FA/3404/2022 ORDER DATED: 10/02/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 3404 of 2022
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NEW INDIA ASSURANCE COMPANY LIMITED
Versus
ZINABHAI CHANDRABHAI NAYKA & ORS.
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Appearance:
MR RATHIN P RAVAL(5013) for the Appellant(s) No. 1
MR HIREN M MODI(3732) for the Defendant(s) No. 1,2
RULE SERVED for the Defendant(s) No. 3
SERVED BY AFFIX. (R) for the Defendant(s) No. 4
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CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
Date : 10/02/2026
ORAL ORDER
[1.0] Insurance Company is in First Appeal under section
173 of the Motor Vehicles Act, 1988. Challenge is made to the
judgment and award dated 11.04.2022 passed by the learned
Motor Accident Claim Claims Tribunal (Main), Valsad in Motor
Accident Claim Petition No.41 of 2015.
[2.0] Perusal of the judgment and award indicates that
Insurance Company has challenged the judgment and award
made to the tune of Rs.4,70,000/- to the victim of the road
accident.
[3.0] Heard learned advocates for the respective parties.
[4.0] Since the amount involved in the First Appeal is
Rs.4,70,000/-, paying due regard to smallness of amount, this
Court is of the considered view that the First Appeal should be
disposed of as compensation awarded seems to be just and
reasonable and no interference is called for. It is hereby made
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C/FA/3404/2022 ORDER DATED: 10/02/2026
clear that this First Appeal is disposed of only on the ground of
award of compensation being meager and small. This Court has
not expressed any opinion on merits and question of law raised in
this First Appeal and is kept open to be urged in other
proceedings which may arise from the same road accident / same
judgment and award. It is made clear that this order will not
come in the way of adjudication of any other First Appeal
pending against same judgment and award or adjudication of any
other claim petition arising from same road accident. Since the
First Appeal is disposed of only on the contention of monetary
value being small, principle of res judicata shall not be applied to
any other proceedings arising from the same road accident or
same judgment and award.
[5.0] In view of above, the First Appeal is dismissed.
Pending Civil Applications, if any, stands disposed of as having
become infructuous. No order as to costs.
[6.0] Record and Proceedings and amount, if any lying
before this Court is ordered to be transmitted to the concerned
Tribunal forthwith along with accrued interest, if any. The entire
awarded amount be disbursed and released in favour of the
claimants after due veriGcation by transferring the said amount
to the account of the claimants either by RTGS or NEFT mode.
(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 10/02/2026 14:57:41
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