[Cites 5, Cited by 0]
Gujarat High Court
United India Insurance Company Limited ... vs Husenbhai Insmailbhai Shaikh ... on 5 December, 2025
NEUTRAL CITATION
C/FA/2514/2025 JUDGMENT DATED: 05/12/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2514 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
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Approved for Reporting Yes No
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UNITED INDIA INSURANCE COMPANY LIMITED (HUB)
Versus
HUSENBHAI INSMAILBHAI SHAIKH (DELETED) & ORS.
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Appearance:
MR GC MAZMUDAR(1193) for the Appellant(s) No. 1
MR HG MAZMUDAR(1194) for the Appellant(s) No. 1
DELETED for the Defendant(s) No. 1
MR H M SHAH(3997) for the Defendant(s) No. 2,3
NOTICE SERVED for the Defendant(s) No. 4
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CORAM:HONOURABLE MR. JUSTICE HASMUKH D. SUTHAR
Date : 05/12/2025
ORAL JUDGMENT
1) Present appeal has been preferred by the appellant - United India
Insurance Company Ltd., under Section 173 of the Motor Vehicles
Act (which shall hereinafter be referred to as "the Act") against the
judgment and award dated 19.04.2024 passed in MAC Petition
No.356 of 2017, by the Motor Accident Claims Tribunal (Auxi.-III)
Gandhinagar (which shall hereinafter be referred to as "Tribunal").
The said petition was filed by the claimants under Section 163-A of
the Motor Vehicle Act whereby the learned Tribunal has awarded
NEUTRAL CITATION
C/FA/2514/2025 JUDGMENT DATED: 05/12/2025
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compensation of Rs.7,72,500/-.
2) Heard learned advocates for the respective parties. Though served,
none appears for respondent No.4.
3) The brief facts of the case is that on 14.09.2017 at 10:15 pm,
Anvar Husenbhai Shaikh (who shall hereinafter be referred to as
"deceased") was driving and going in a Mahindra XUV Car from
Vapi to Surat on his correct side in a moderate speed with following
traffic rules and when Anvar was passing near a bridge, Dharampur
Circle, Vapi-Valsad Road, driver of Truck bearing Reg. No.GJ-15-Z-
0361 was going ahead in the middle of the road in rash and
negligent manner, endangering human life without following traffic
rules and when Anvar has shown deeper light of his car with the
intention to overtake the Truck suddenly the driver of the truck has
applied brake and hence the car was dashed with rear right side of
the Truck. Due to which the deceased sustained fatal injuries and
succumbed to it on the spot. Therefore, the legal heirs of the
deceased have filed Claim Petition under Section 166 of the Act and
subsequently the same was converted as petition under Section
163-A of the Act. Wherein, the learned Tribunal has partly allowed
the petition.
4) Having heard both the learned Advocates and going through the
record it appears that initially the petition was filed under Section
166 of the Act and subsequently the same was converted under
NEUTRAL CITATION
C/FA/2514/2025 JUDGMENT DATED: 05/12/2025
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Section 163-A of the Act. If we peruse the second schedule in the
Act upper limit of income is Rs.40,000/- per annum which is
required to be considered for compensation. It is admitted fact that
the learned Tribunal has considered income as Rs.6,000/- per
month which is Rs.72,000/- per annum which is admittedly
excessive and exorbitant, up to that extent the learned Tribunal has
committed error and order is required to be interfered with. At the
same time this Court has taken into consideration that after
amendment to the MV Act, 2019 second schedule of Section 163-A
is omitted and Section 164 has been inserted, which prescribes the
amount of compensation in cases of death or grievous hurt, and in
the case of death, the minimum compensation prescribed is
Rs.5,00,000/-. Although the claim petition in the present case was
filed prior to the amendment, i.e., in the year 2017, the Hon'ble
Supreme Court in New India Assurance Co. Ltd. v. Urmila
Halder, reported in 2025 ACJ 244, has upheld the grant of
Rs.5,00,000/- even in petitions filed under Section 163-A prior to
the amendment, treating the legislation as beneficial and noting the
absence of any specific bar to retrospective application.
5) For the reasons recorded above, if a lump-sum amount of
Rs.5,00,000/- is awarded then purpose to award just compensation
would serve. Therefore, this Court is of the view that interference is
required with the impugned judgment and accordingly amount of
compensation is reduced to Rs.5,00,000/- from Rs.7,72,500/-.
NEUTRAL CITATION
C/FA/2514/2025 JUDGMENT DATED: 05/12/2025
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6) Accordingly, present appeal is allowed. In view of the judgment of
the Hon'ble Apex Court in Urmila Halder (supra), the award
dated 19.04.2024 passed in MAC Petition No.356 of 2017, by the
Motor Accident Claims Tribunal (Auxi.-III) Gandhinagar, is hereby
modified, and the compensation is reduced from Rs.7,72,500/- to
₹5,00,000/-. 5,00,000/-.
7) The Appellant - Insurance Company is entitled to get refund /
recover Rs.2,72,500/- with interest.
8) Record and proceedings (if any) be remitted back to the concerned
Tribunal forthwith.
9) Award to be drawn accordingly.
(HASMUKH D. SUTHAR,J)
ANKIT JANSARI
