Facts
The New India Assurance Company (Petitioner) challenged an award passed by the Claims Tribunal, which granted compensation of ₹64,500 to the claimant (Respondent No. 1) for injuries sustained while traveling in a car that turned turtle.
Source reference: para. 1-2The Petitioner contended that the insurance policy did not cover passengers in the car; however, the Tribunal found the Petitioner failed to prove this exclusion through evidence.
Source reference: para. 2-3The Petitioner filed this revision under Section 115 of the CPC, arguing the issue was of "larger importance" despite the low quantum of the award.
Source reference: para. 2, 4Issues
1. Whether a revision under Section 115 of the CPC is maintainable against a Claims Tribunal award where the amount in dispute is less than ₹1,00,000, given the statutory bar on appeals under Section 173(2) of the Motor Vehicles Act?
Source reference: para. 5-62. Whether the Petitioner demonstrated "special circumstances," such as failure of justice or irreparable injury, to justify the exercise of revisional jurisdiction in a low-quantum case?
Source reference: para. 8, 10Law Applied
Section 173(2) of the Motor Vehicles Act, 1988, which bars appeals against awards where the amount in dispute is less than ₹1,00,000.
Source reference: para. 5, 9The five-judge Special Bench decision in National Insurance Company v. Shrikant Vinod Tiwari (2007), which established that while an appeal may be barred, a revision under Section 115 CPC lies only on limited grounds such as lack of jurisdiction, failure of justice, or irreparable injury.
Source reference: para. 6Nirbhai Singh v. Darshan Singh (2025), which deprecated the practice of using Article 227 or revisions to circumvent statutory prohibitions on appeals.
Source reference: para. 9Reasoning
The court reasoned that the legislature intentionally raised the threshold for appeals to ₹1,00,000 to limit litigation over small amounts.
Source reference: para. 5Applying the Shrikant Vinod Tiwari criteria, the court found that a revision cannot be filed as a "matter of course" or in a "routine matter".
Source reference: para. 7-8The court observed that the Petitioner failed to show any "failure of justice," fraud, or jurisdictional error.
Source reference: para. 8It further noted that the litigation expenses for both parties in this revision would likely equal or exceed the awarded amount of ₹64,500, making the challenge economically counter-productive and a burden on the judicial system.
Source reference: para. 4, 10Consequently, the court determined that no legal question of larger importance was involved to override the statutory bar.
Source reference: para. 10Holding
The court held that the revision was not maintainable as it did not satisfy the exceptional criteria required to bypass the statutory bar on appeals for low-quantum awards.
The Revision was dismissed.
Source reference: para. 11However, the court granted the Petitioner liberty to seek restoration of the revision should the claimant file a cross-case for enhancement of the compensation quantum.
Source reference: para. 11Acts & Sections Cited
2 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Code of Civil Procedure, 19081
Motor Vehicles Act, 19881
Original Court PDF
The New India Assurance Company LimitedvsHarun Rashid Khan
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