High Court of Gujarat Dismisses Insurance Company's Appeal Against Compensation Award Due to Smallness of Amount. Court disposes of appeal without expressing opinion on merits, keeping questions of law open for other proceedings.

High Court: Gujarat High Court

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2026-05-19 18:58:18

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Case Note & Summary

The case involves a First Appeal filed by Bajaj Allianz General Insurance Company Ltd. under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 24.09.2019 passed by the Motor Accident Claims Tribunal, Surendranagar in Motor Accident Claim Petition No.54 of 2017. The Tribunal had awarded compensation of Rs.3,84,500/- to the victim of a road accident, Ratanben Mohanbhai Makwana and others. The Insurance Company appealed against this award. The High Court, after hearing the learned advocates for both sides, noted that the amount involved in the appeal was small and meagre. Considering the smallness of the amount, the Court was of the considered view that the compensation awarded appeared just and reasonable, and no interference was called for. The Court disposed of the First Appeal solely on the ground of the smallness of the compensation amount. It clarified that it had not expressed any opinion on the merits or the questions of law raised in the appeal, and those issues were kept open to be urged in other proceedings that may arise from the same road accident or the same judgment and award. The Court further directed that this order would not come in the way of adjudication of any other First Appeal pending against the same judgment and award or any other claim petition arising from the same accident. Since the appeal was disposed of only on the contention of monetary value, the principle of res judicata would not apply to any other proceedings.

Headnote

A) Motor Vehicles Act - Compensation - Smallness of Amount - Section 173 Motor Vehicles Act, 1988 - Insurance Company challenged compensation of Rs.3,84,500/- awarded to accident victim - Court held that since the amount is small and meagre, the appeal is disposed of without expressing any opinion on merits or questions of law - Held that the order will not operate as res judicata in other proceedings arising from the same accident (Paras 1-4).

Issue of Consideration

Whether the First Appeal should be entertained given the smallness of the compensation amount awarded.

Final Decision

The First Appeal is disposed of as the compensation awarded seems just and reasonable and no interference is called. The Court has not expressed any opinion on merits and questions of law raised, which are kept open to be urged in other proceedings. The order will not operate as res judicata.

Law Points

Smallness of amount
No interference with just compensation
Res judicata not applicable
Questions of law kept open

Case Details

2026:GUJHC:4814

R/First Appeal No. 297 of 2023

2026-01-22

Hasmukh D. Suthar

2026:GUJHC:4814

Ms Kirti S Pathak for Appellant, Mr Y J Patel for Respondents 1,2

Bajaj Allianz General Insurance Company Ltd

Ratanben Mohanbhai Makwana & Ors.

Nature of Litigation

First Appeal under Section 173 of the Motor Vehicles Act, 1988 challenging compensation award.

Remedy Sought

Insurance Company sought to set aside or reduce the compensation awarded by the Tribunal.

Filing Reason

Insurance Company challenged the judgment and award dated 24.09.2019 passed by the Motor Accident Claims Tribunal, Surendranagar in MACP No.54 of 2017 awarding Rs.3,84,500/- to the victim.

Previous Decisions

The Motor Accident Claims Tribunal, Surendranagar passed the judgment and award on 24.09.2019 in MACP No.54 of 2017.

Issues

Whether the compensation amount of Rs.3,84,500/- is just and reasonable? Whether the First Appeal should be entertained given the smallness of the amount?

Submissions/Arguments

Learned advocate for the Insurance Company argued in support of the appeal. Learned advocate for the respondents opposed the appeal.

Ratio Decidendi

When the amount involved in an appeal is small and meagre, the court may dispose of the appeal without expressing opinion on merits, keeping questions of law open for other proceedings, and the principle of res judicata shall not apply.

Judgment Excerpts

Since the amount involved in the First Appeal is small and meagre, 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. 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.

Procedural History

The Motor Accident Claims Tribunal, Surendranagar passed judgment and award on 24.09.2019 in MACP No.54 of 2017. The Insurance Company filed First Appeal No.297 of 2023 under Section 173 of the Motor Vehicles Act, 1988 before the High Court of Gujarat. The High Court heard the appeal and disposed it on 22.01.2026.