Gujarat High Court
Reliance General Insurance Company Ltd vs Shobhagben Dhreerajlal Soni on 2 December, 2025
NEUTRAL CITATION
C/FA/1036/2025 ORDER DATED: 02/12/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 1036 of 2025
With
CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT OF
AMOUNT) NO. 2 of 2025
In
R/FIRST APPEAL NO. 1036 of 2025
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RELIANCE GENERAL INSURANCE COMPANY LTD.
Versus
SHOBHAGBEN DHREERAJLAL SONI & ORS.
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Appearance:
MR RATHIN P RAVAL(5013) for the Appellant(s) No. 1
MR. HEMAL SHAH(6960) for the Defendant(s) No. 1,2,3,4,5
NOTICE UNSERVED for the Defendant(s) No. 6,7
ORTIS LAW OFFICES(12342) for the Defendant(s) No. 1,2,3,4,5
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CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
Date : 02/12/2025
ORAL ORDER
1) By way of present First Appeal under Section 173 of the Motor Vehicles Act, 1988 (for short "MV Act"), the appellant herein - original opponent No.3 Insurance Company has assailed the impugned judgment and award dated 23rd September, 2024 in Motor Accident Claim Petition No. 7 of 2024 (Old MACP No.167/2011 and 1428/2015) passed by the Motor Accident Claims Tribunal (Aux.), Banaskantha (hereinafter referred to as "learned Tribunal"), whereby the learned Tribunal was pleased to allow the claim petition filed by the respondents-claimants.
2) The present appeal has been filed on the limited ground
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NEUTRAL CITATION
C/FA/1036/2025 ORDER DATED: 02/12/2025
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that the learned Tribunal has erred in awarding interest for the period between 25th September, 2017 and 3rd April, 2024. The claim petition had been previously dismissed for non-prosecution and delay on the part of the claimants. Although the learned Tribunal committed an error in not considering the said period and awarding interest from the date of the claim petition until the realisation of the awarded amount.
3) Heard learned Advocate Mr. Jainam Shah, who appeared on behalf of Mr. Rathin Raval for the appellant and learned advocate Mr. Sandip Chohala for Mr. Hemal Shah, learned advocate appearing for the defendants.
4) Perusing the record, it appears that the claim petition being MACP No.167 of 2011 was initially filed before the learned Motor Accident Claims Tribunal (Aux.), Banaskantha at Deesa. Thereafter, upon the establishment of a new Court at Deodar, the claim petition was transferred to the learned Tribunal at Deodar and was re-registered as MACP No.1428 of 2015 on 25th September, 2017. The said claim petition came to be dismissed for non-appearance on the part of the claimants and their Advocate.
5) Thereafter, the original claimants moved an application for restoration of the original claim petition. Due to the creation of a new Court in the Tharad Division, the said claim petition along with the restoration application, being MACMA No. 19 of 2019 Page 2 of 5 Uploaded by GARVITA KACHHWAHA(HC02358) on Thu Dec 04 2025 Downloaded on : Thu Dec 04 21:09:27 IST 2025 NEUTRAL CITATION C/FA/1036/2025 ORDER DATED: 02/12/2025 undefined came to be transferred to the Motor Accident Claims Tribunal at Tharad. The learned Tribunal at Tharad was pleased to restore the petition, and the MACP was renumbered as MACP No.07 of 2024. After recording the evidence, the claim petition was allowed.
6) It appears that in the aforesaid background, the delay occurred. As the claim petition is in connection with an accident which took place in the year 2010, upon perusal of the record, it emerges that the claim petition was repeatedly transferred from one Court to another, which contributed to the delay. The matter was initially dismissed by the learned Tribunal at Deodar on account of non-appearance of the claimants or their Advocate. It further appears that, due to the transfer of the claim petition and in absence of proper service of notice or any supporting material, the matter came to be dismissed and thereafter a restoration application was filed. The restoration application was also transferred to the Tharad Court. Therefore, while restoring the claim petition, the Tribunal imposed cost of Rs. 3,000/- which was deposited before the Taluka Legal Services Committee, Tharad. Subsequently, the claim petition came to be restored.
7) On perusing the record, it is evident that certain delay occurred due to the transfer of proceedings between various Courts as well as due to the laxity on the part of the claimants, who failed to remain present or lead evidence. It also appears from the impugned judgment that although the Tribunal was of Page 3 of 5 Uploaded by GARVITA KACHHWAHA(HC02358) on Thu Dec 04 2025 Downloaded on : Thu Dec 04 21:09:27 IST 2025 NEUTRAL CITATION C/FA/1036/2025 ORDER DATED: 02/12/2025 undefined the opinion that interest at the rate of 9% per annum was otherwise required to be granted, , having considered the delay and negligence on the part of the claimants, the learned Tribunal awarded interest at the reduced rate of 6% per annum. Thus, the reduction of 3% in the rate of interest has been treated by the Tribunal as a consequence of the delay and the claimants' lapse in diligently prosecuting the claim petition.
8) Upon perusal of the aforesaid facts, as the interest has been awarded at the rate of 6% per annum, this Court is of the considered view that the learned Tribunal has properly exercised its jurisdiction in accordance with Section 171 of the Motor Vehicles Act. The finding and reasoning assigned by the learned Tribunal in awarding interest at 6% on the compensation amount do not call for any interference.
9) In wake of aforesaid conspectus, present appeal fails and is accordingly dismissed.
10) The Tribunal shall disburse the entire awarded amount lying in the FDR and/or with the Tribunal, with accrued interest thereon, if any, to the claimants after fixing apportionment, if not already fixed, by account payee cheque / NEFT / RTGS, after proper verification and after following due procedure.
While making the payment, the Tribunal shall deduct the courts fees, if not paid, in accordance with rules/law.
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Record and proceedings, if any, be sent back to the concerned Tribunal, forthwith.
With these observations, Civil Application (For Withdrawal / Disbursement of Amount) No.2 of 2025 in First Appeal No.1036/2025 stands disposed of.
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