Case Note & Summary
The New India Assurance Co. Ltd. filed a First Appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 26.07.2019 passed by the Motor Accident Claims Tribunal (Auxi.), Modasa in Motor Accident Claim Petition No.114 of 2017, whereby compensation of Rs.2,00,000/- was awarded to the victim of a road accident. The Insurance Company contested the award on merits and questions of law. The High Court, after hearing the learned advocates for the respective parties, observed that the amount involved in the appeal was small and meager. Taking into consideration the smallness of the amount, the Court was of the considered view that the compensation awarded appeared just and reasonable and no interference was warranted. Consequently, the Court disposed of the First Appeal solely on the ground of the award being meager and small. The Court expressly clarified that it had not expressed any opinion on the merits or questions of law raised in the appeal, and those issues were kept open to be urged in other proceedings arising 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 - First Appeal under Section 173 of Motor Vehicles Act, 1988 - Insurance Company challenged award of Rs.2,00,000/- to victim - Court held that since amount is small and meager, no interference is called and appeal is disposed of on that ground alone - Merits and questions of law kept open for other proceedings - Principle of res judicata not applicable (Paras 1-4).
Issue of Consideration
Whether the High Court should interfere with a compensation award of Rs.2,00,000/- in a motor accident claim when the amount is small and meager.
Final Decision
First Appeal disposed of as compensation awarded is just and reasonable; no interference called. Merits and questions of law kept open for other proceedings. Res judicata not applicable.
Law Points
- Smallness of amount
- No interference with just compensation
- Res judicata not applicable
- Merits and questions of law kept open





