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High Court of Gujarat

DISTRICT MANAGER / AREA MANAGER, FCI,versusVAIBHAV TRANSPORT

Disposal
39-RULE DISCHARGED/DISMISSED @ FH
Bench
C DOSHI

Holding

The appeal is dismissed on account of the smallness of the compensation amount, without deciding any substantive legal issue.

Summary

The appellant, District Manager/Area Manager of FCI, filed a first appeal challenging a compensation award of less than Rs.5 lakh. The court noted that the amount involved was modest and, after hearing arguments, decided not to entertain the appeal on the ground of its smallness. Consequently, the appeal was dismissed without addressing any substantive legal issues, and the order was expressly stated not to serve as precedent. The court directed the registry to return any records and instructed the commissioner to disburse the deposited compensation with interest after verification. It also clarified that under Section 12 of the Employees’ Compensation Act, the principal employee is entitled to recover compensation paid on behalf of a sub‑contractor.

Issues considered

  • What is the appropriate course of action when an appeal involves a compensation amount below Rs.5 lakh?

Legislation cited

Subjects

appealcompensationsmall amountEmployees’ Compensation Actdismissalprecedent

Judgment

     C/FA/2297/2017                                ORDER DATED: 12/06/2026




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       R/FIRST APPEAL NO. 2297 of 2017

                                  With
              CIVIL APPLICATION (FOR STAY) NO. 1 of 2017
                   In R/FIRST APPEAL NO. 2297 of 2017
==========================================================
           DISTRICT MANAGER / AREA MANAGER, FCI, & ANR.
                              Versus
                    VAIBHAV TRANSPORT & ANR.
==========================================================
Appearance:
ADVOCATE NOTICE SERVED for the Appellant(s) No. 2
MR NIRAD D BUCH(4000) for the Appellant(s) No. 1
MRS. BHAVINI N. BUCH(5403) for the Appellant(s) No. 1
RULE SERVED for the Defendant(s) No. 2
RULE UNSERVED for the Defendant(s) No. 1
==========================================================

 CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI

                               Date : 12/06/2026

                                    ORDER


      In the first appeal, the amount of compensation involved
is below Rs.5 lakh.


      Having          heard   the   submissions    made      at    bar       and
considering the fact that the amount involved in the subject
matter of present First appeal is on lower side i.e. less than
Rs.5,00,000/-, considering the smallness of the awarded
amount involved in the present appeal, the Court is 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.


                                    Page 1 of 2
            C/FA/2297/2017                                                           ORDER DATED: 12/06/2026




              However, it is clarified 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 Commissioner is directed to disburse the
   amount of compensation deposited by the appellant to the
   claimants after due verification and identification along with
   interest           and         after        verifying            their         right        to      claim          the
   compensation.


              It is made clear that in view of section 12 of the
   Employees’ Compensation Act, the principle employee is
   always entitled to recover the amount of compensation paid
   on behalf of the Sub Contractor.



                                                                                                    (J. C. DOSHI,J)
   SHEKHAR P. BARVE



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SHEKHAR PRAFULBHAI BARVE(HC00200), Principal Pvt. Secretary, at High Court of Gujarat on 12/06/2026 14:37:25




                                                         Page 2 of 2


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