High Court of Gujarat

THE NEW INDIA ASSURANCE COMPANY LTD.versusVALJIBHAI PARSHOTTAMBHAI JHOLAPARA

Disposal: 39-RULE DISCHARGED/DISMISSED @ FH
Bench: HASMUKH D SUTHAR

Holding

The appeal is dismissed solely on the ground that the awarded compensation is small, without addressing the merits of the case.

Summary

The New India Assurance Company Ltd. filed a First Appeal under Section 173 of the Motor Vehicles Act, 1988 against a Motor Accident Claims Tribunal (Special) award of Rs.4,86,500 to the road‑accident victim. The High Court examined the appeal and noted that the compensation amount was modest. It held that the appeal should be disposed of solely on the ground of the award’s smallness, without expressing any view on the merits or the legal questions raised. Consequently, the appeal was dismissed and any pending civil applications were deemed infructuous. The awarded amount, together with any accrued interest, was ordered to be transmitted to the Tribunal for release to the claimants.

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 modest?

Legislation cited

Motor Vehicles Act, 1988s. 173

Subjects

Motor Vehicles ActSection 173First AppealMotor Accident Claims Tribunalcompensation awardsmall amount disposalres judicata

Judgment

     C/FA/2959/2024                          ORDER DATED: 16/02/2026




IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                 R/FIRST APPEAL NO. 2959 of 2024
==========================================================
            THE NEW INDIA ASSURANCE COMPANY LTD.
                              Versus
         VALJIBHAI PARSHOTTAMBHAI JHOLAPARA & ANR.
==========================================================
Appearance:
MS DIMPLE A THAKER(6838) for the Appellant(s) No. 1
RULE SERVED for the Defendant(s) No. 1,2
==========================================================
  CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                         Date : 16/02/2026
                          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 15.05.2024 passed by the learned
Motor Accident Claims Tribunal (Special), at Rajkot in MACP
No.1588/2019.

[2.0] Perusal of the judgment and award indicates that Insurance
Company has challenged the judgment and award made to the
tune of Rs.4,86,500/- 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.4,86,500/-, 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 this First Appeal is disposed of only on the ground of
award of compensation being meager and small. This Court has


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        C/FA/2959/2024                                                         ORDER DATED: 16/02/2026




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 veriFcation 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 16/02/2026 15:50:09




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