High Court of Gujarat

UNITED INDIA INSURANCE COMPANY LTDversusDAMJIBHAI CHANABHAI SAKARIYA

Disposal: 47-DISPOSAL IN ANY OTHER MODE FH
Bench: HASMUKH D SUTHAR

Holding

The First Appeal is dismissed solely on the ground that the compensation awarded is meager, without expressing any opinion on the merits or legal questions.

Summary

The United India Insurance Company Ltd filed a First Appeal under section 173 of the Motor Vehicles Act, 1988 against a Motor Accident Claims Tribunal award of Rs.4,60,800 to the road‑accident victims. The High Court examined the appeal but, noting that the compensation amount was relatively small, chose to dispose of the appeal solely on that ground without addressing the substantive merits or any legal questions raised. The Court expressly stated that its order does not prejudice any other proceedings arising from the same accident. Consequently, the appeal was dismissed, the pending civil application was held infructuous, and the awarded amount was ordered to be transmitted to the Tribunal for release to the claimants. No costs were awarded.

Issues considered

What, if any, is the appropriate basis for dismissing a First Appeal under section 173 of the Motor Vehicles Act when the award amount is modest?
Whether the Court should consider the merits or legal questions raised in the appeal despite the small quantum of compensation.

Legislation cited

Motor Vehicles Act, 1988s. 173

Subjects

Motor Vehicles ActSection 173First AppealMotor Accident Claims TribunalCompensation awardSmall quantum dismissalRes judicataInsurance claim

Judgment

       C/FA/984/2022                                ORDER DATED: 28/01/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       R/FIRST APPEAL NO. 984 of 2022

==========================================================
                   UNITED INDIA INSURANCE COMPANY LTD
                                   Versus
                   DAMJIBHAI CHANABHAI SAKARIYA & ORS.
==========================================================
Appearance:
MR VIBHUTI NANAVATI(513) for the Appellant(s) No. 1
RULE SERVED for the Defendant(s) No. 1,2,3,4,5
==========================================================

     CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR

                              Date : 28/01/2026

                                ORAL ORDER


1)      Insurance Company is in First Appeal under section 173 of the Motor
Vehicles Act, 1988. Challenge is made to the judgment and award dated
26.08.2021 passed by the learned Motor Accident Claims Tribunal (Auxi.),
Rajkot, in Motor Accident Claim Petition No. 8 of 2015.

2)      Perusal of the judgment and award indicates that Insurance Company
has challenged the judgment and award made to the tune of Rs.04,60,800/-
to the victim of the road accident.

3)      Heard learned advocates for the respective parties.

4)      Since the amount involved in the First Appeal is meager , 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. 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 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


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          C/FA/984/2022                                                     ORDER DATED: 28/01/2026




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)        In view of above, the First Appeal is dismissed. Pending Civil
Application, if any, stands disposed of as having become infructuous. No
order as to costs.

6)        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 veri7cation by transferring the
said amount to the account of the claimants either by RTGS or NEFT mode.




                                                                         (HASMUKH D. SUTHAR,J)
SUCHIT



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: PATEL SUCHIT JAYESHBHAI(HC01083), Private Secretary, at High Court of Gujarat on 28/01/2026 14:12:31




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