THE NEW INDIA ASSURANCE CO. LTD.versusSATISHBHAI KRISHNAMURTI SHASTRI
- Disposal
- 47-DISPOSAL IN ANY OTHER MODE FH
- Bench
- HASMUKH D SUTHAR
Holding
The appeal is dismissed on the ground that the awarded compensation is small and reasonable, without delving into the merits.
Summary
The New India Assurance Co. Ltd. filed a first appeal under Section 173 of the Motor Vehicles Act, 1988 against a Motor Accident Claims Tribunal award of Rs.2,00,000 in favor of the claimants. No respondent appeared. The High Court noted that the amount involved was small and deemed the award reasonable, choosing to dispose of the appeal solely on the ground of the award's meagerness without addressing the merits. The court emphasized that this disposal does not preclude future proceedings on the same accident or affect the principle of res judicata in other cases. Consequently, the appeal was dismissed, pending civil applications were held infructuous, and the awarded amount was ordered to be released to the original claimants. No order as to costs was made.
Issues considered
- What is the appropriate basis for disposing of a first appeal under Section 173 of the Motor Vehicles Act when the awarded compensation is nominal?
- Whether the small quantum of compensation justifies dismissal without addressing the substantive merits of the appeal.
Legislation cited
- Motor Vehicles Act, 1988s. 173
Subjects
Judgment
C/FA/2453/2025 ORDER DATED: 09/01/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2453 of 2025
==========================================================
THE NEW INDIA ASSURANCE CO. LTD.
Versus
SATISHBHAI KRISHNAMURTI SHASTRI & ANR.
==========================================================
Appearance:
MR TANMAY B KARIA(6833) for the Appellant(s) No. 1
NOTICE SERVED for the Defendant(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
Date : 09/01/2026
ORAL ORDER
[1.0] Insurance Company is in First Appeal under section 173 of the
Motor Vehicles Act, 1988 challenging the impugned judgment and
award dated 25.10.2024 passed by the learned Motor Accident Claims
Tribunal (Auxi.), Ahmedabad (Rural) in MACP No.948/2005, whereby
the learned Tribunal was pleased to partly allow the claim petition and
awarded Rs.2,00,000/- towards compensation.
[2.0] Heard learned advocate for the appellant. Though served, none
appears for the respondent Nos.1 and 2.
[3.0] Since the amount involved in the present First Appeal is small and
meager, which falls under the category of smallness, 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 clear
that these 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 these First Appeal is kept
open to be urged in other proceedings which may arise from the same
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C/FA/2453/2025 ORDER DATED: 09/01/2026
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 respective 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 ground of monetary value being small,
without entering into merits, principle of res judicata shall not be applied
to any other proceedings including cross-objections, if any, arising from
the same road accident or same judgment and award.
[4.0] In view of above, present First Appeal is dismissed. Pending Civil
Applications, if any, stands disposed of as having become infructuous. No
order as to costs.
[5.0] 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 original claimants after due veriEcation by
transferring the said amount to the account of the respective original
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 09/01/2026 15:35:18
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