Gujarat High Court Allows Appeal Against Ex Parte Impleadment and Award in Motor Accident Claim — Violation of Natural Justice. Insurance Company Added as Party Without Notice and Award Passed Without Opportunity to Defend, Set Aside with Remand.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 01:57:02

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Case Note & Summary

The present First Appeal under Section 173 of the Motor Vehicles Act, 1988 was filed by the appellant, Ajitbhai Pranabandhu Shamal, who was the original opponent No.3, challenging the judgment and award dated 06.08.2025 passed by the learned 3rd Additional District Judge & Motor Accident Claims Tribunal (Auxi.), Ahmedabad in Motor Accident Claim Petition No.1435 of 2013. The claim petition was originally filed by Kailashchandra Ganpatbhai Bhatiya (since deceased) against the driver and owner of the offending motorcycle, seeking compensation for injuries sustained in a road accident. During the pendency of the petition, the insurance company filed an application disputing the involvement of the insured vehicle, leading the claimant to seek impleadment of the present appellant as opponent No.3. The appellant was served with notice, appeared through counsel, and filed a reply on 11.06.2025. However, without any further hearing, the claimant moved an application on 24.07.2025 to take the matter on board without serving a copy on the appellant, and the Tribunal passed an ex parte order allowing the impleadment. Subsequently, on 06.08.2025, the Tribunal pronounced the impugned award, holding the appellant liable. The High Court found that the appellant was not given any opportunity of hearing either before the impleadment order or before the award, which was a clear violation of principles of natural justice. The Court noted that the appellant had already filed a reply and was awaiting a hearing, but the Tribunal proceeded ex parte. Consequently, the High Court allowed the appeal, set aside the impugned award, and remanded the matter to the Tribunal for fresh adjudication after giving the appellant an opportunity to lead evidence and cross-examine the claimant's witnesses. The Court directed the Tribunal to decide the claim petition afresh within six months from the date of receipt of the order.

Headnote

A) Motor Accident Claims - Impleadment of Party - Natural Justice - Motor Vehicles Act, 1988, Section 173 - The appellant was impleaded as opponent No.3 in a pending claim petition without notice or opportunity of hearing, and the award was passed ex parte against him. The High Court held that the impleadment order and the subsequent award were passed in gross violation of principles of natural justice, as the appellant had already filed a reply and was awaiting hearing. The impugned award was set aside and the matter remanded for fresh adjudication after giving the appellant an opportunity to lead evidence and cross-examine. (Paras 1-5)

B) Motor Accident Claims - Ex Parte Award - Setting Aside - Motor Vehicles Act, 1988, Section 173 - The Tribunal allowed the claimant's application to take the matter on board without notice to the newly added opponent and passed an ex parte award. The High Court found that the appellant had not been given any opportunity to defend, and the award was passed in undue haste. The appeal was allowed, the award set aside, and the matter remitted to the Tribunal for fresh disposal in accordance with law. (Paras 3-5)

Issue of Consideration

Whether the learned Tribunal erred in allowing the application for impleadment of the appellant as party opponent No.3 and passing the impugned award without giving an opportunity of hearing to the appellant, thereby violating principles of natural justice.

Final Decision

The appeal is allowed. The impugned judgment and award dated 06.08.2025 passed by the learned 3rd Additional District Judge & Motor Accident Claims Tribunal (Auxi.), Ahmedabad in MACP No.1435/2013 is set aside. The matter is remanded to the learned Tribunal for fresh adjudication after giving the appellant an opportunity to lead evidence and cross-examine the claimant's witnesses. The learned Tribunal is directed to decide the claim petition afresh within six months from the date of receipt of the order. The connected civil application also stands disposed of.

Law Points

Principles of natural justice
right to be heard
ex parte order without notice
impleadment of party without opportunity
setting aside ex parte award
remand for fresh adjudication

Case Details

2026:GUJHC:2768

R/First Appeal No. 3686 of 2025 with Civil Application (For Stay) No. 1 of 2025

2026-01-12

Hasmukh D. Suthar

2026:GUJHC:2768

Mr. Aditya J. Pandya for the Appellant, Mr. Nishit Bhalodi for the Original Claimant, Ms. Masumi V. Nanavaty and Mr. Vibhuti Nanavati for Defendant No.3

Ajitbhai Pranabandhu Shamal

Legal Heirs of Deceased Kailashchandra Ganpatbhai Bhatiya, Bhatiya Draupadi Kailashchandra & Ors.

Nature of Litigation

First Appeal under Section 173 of the Motor Vehicles Act, 1988 challenging the judgment and award of the Motor Accident Claims Tribunal.

Remedy Sought

The appellant sought setting aside of the impugned award and remand for fresh adjudication after giving him an opportunity of hearing.

Filing Reason

The appellant was impleaded as opponent No.3 in a pending claim petition without notice and the award was passed ex parte against him without opportunity to defend.

Previous Decisions

The learned Tribunal allowed the claim petition of the original claimants with costs and interest against original opponent Nos.1 and 3 (appellant).

Issues

Whether the impleadment of the appellant as party opponent No.3 without notice and opportunity of hearing violated principles of natural justice? Whether the impugned award passed ex parte against the appellant without giving him an opportunity to lead evidence and cross-examine is sustainable?

Submissions/Arguments

The appellant argued that he was impleaded without notice and the award was passed ex parte without any opportunity to defend, violating natural justice. The respondent-claimant argued that the appellant had been served and had filed a reply, but the Tribunal proceeded to pass the award.

Ratio Decidendi

An order impleading a party and an award passed without giving an opportunity of hearing to the newly added party is in gross violation of principles of natural justice and cannot be sustained. The matter must be remanded for fresh adjudication after affording the party a reasonable opportunity to defend.

Judgment Excerpts

It appears that the claimant moved an application (Exh.65) dated 24.07.2025 for taking the matter on board without serving the copy of application and without giving any intimation to the present appellant and an ex parte order was passed on 24.07.2025 below application Exh.59 for joining the present appellant as party opponent No.3 without giving an opportunity of hearing to the present appellant. The learned Tribunal has specifically observed that the present appellant has not led any evidence and has not cross-examined the claimant's witnesses. The appellant was not given any opportunity to lead evidence and cross-examine the witnesses.

Procedural History

The original claimant filed MACP No.1435/2013 on 30.08.2013 seeking compensation for injuries sustained in a road accident. During pendency, the claimant died and his legal heir was impleaded. The insurance company filed an application disputing the involvement of the insured vehicle. The claimant then filed an application (Exh.59) to implead the present appellant as opponent No.3, which was allowed ex parte on 24.07.2025 without notice to the appellant. The Tribunal passed the impugned award on 06.08.2025. The appellant filed the present First Appeal challenging the award.