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. 11Original Court PDF
The New India Assurance Company LimitedvsHarun Rashid Khan
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