Appeals
Section 173 of the Motor Vehicles Act, 1988 deals with appeals. Subject to the provisions of sub-section (2), any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court: Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertai The Act came into force on 01 Jul 1989.
(1) Subject to the provisions of sub-section (2), any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court:
Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Court unless he has deposited with it twenty-five thousand rupees or fifty per cent. of the amount so awarded, whichever is less, in the manner directed by the High Court:
Provided further that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.
(2) No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than 1[one lakh] rupees.
Section 173, The Motor Vehicles Act, 1988 (Act 59 of 1988).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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V. Sudha vs P. Ganapathi Bhat
Court's Decision & Legal Precedent
In motor accident compensation cases involving serious injuries with specific medical evidence corroborating the claimant's claim of permanent disability and future medical treatment needs, the court must award compensation sufficient to fully restore the claimant to the pre-accident position to the extent possible through monetary compensation. When credible medical evidence establishes the need for future medical expenses, such evidence should be accepted and compensation awarded accordingly, even if the exact amount is not specified, as long as the evidence is not contraverted by the respondent. The determination of compensation under Section 168 of the Motor Vehicles Act must be 'just' in its substance, not merely conservative or proportionately lower than claimed.
On this section: The High Court heard the appeal filed under this provision and modified the tribunal's award
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The Managing Director, Tnstc vs Sripriya
Court's Decision & Legal Precedent
In fatal motor vehicle accident cases under the Motor Vehicles Act, compensation to dependents is calculated using the multiplicand-multiplier method: the multiplicand is determined by deducting the deceased's personal and living expenses from gross earnings, and the appropriate multiplier is selected based on the deceased's age and prevailing banking interest rates, with 18 being the maximum multiplier for ages 21-25 years and the multiplier declining for older ages. The Second Schedule to the Motor Vehicles Act is merely a guide and not an invariable ready reckoner; courts must exercise discretion based on economic conditions. The interest rate on compensation should reflect prevailing economic conditions, and compensation should be structured with fixed deposits for minors to ensure long-term financial security of dependents.
On this section: Section 173 governs appeals against awards made by Motor Accidents Claims Tribunal. The Supreme Court exercised appellate jurisdiction under this section to review the compensation methodology and amount awarded by the Tribunal.
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Sri Laxman @ Laxman Mourya vs Divisional Manager, Oritl. Ins. Co. LTD
Court's Decision & Legal Precedent
When a victim of motor accident suffers permanent or temporary disability, the Court must award adequate compensation not only for physical injury and treatment but also for pain, suffering, trauma, loss of earning capacity (both past and future), inability to lead normal life, and loss of amenities. Compensation should include both pecuniary damages (expenses for treatment, loss of earnings) and non-pecuniary damages (pain and suffering, loss of amenities, loss of expectation of life). Even if disability percentage is less than 100%, if medical evidence shows working capacity is reduced to zero, compensation for loss of future earnings should be calculated on the disability percentage multiplied by monthly earnings and projected remaining work life. The Motor Vehicles Act requires compensation to be 'just,' meaning it must fully and adequately restore the claimant to the position prior to the accident, and courts have discretion to award compensation exceeding the claimed amount.
On this section: Provides for appeal against Motor Accident Claims Tribunal award to High Court; Used as procedural basis for respondent's appeal
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Fahim Ahmad vs United India Insurance Co. Ltd.
Court's Decision & Legal Precedent
An insurance company cannot escape liability for compensation in a motor accident claim by merely pleading that the insured vehicle was used in breach of policy conditions. Such breach must be substantiated through positive evidence adduced during trial or before the tribunal. Mere carriage of materials (including sand) by an agricultural vehicle does not, without more, constitute commercial use or use for hire and reward as contemplated under Section 149(2)(a)(i)(a) of the Motor Vehicles Act, 1988. In the absence of such substantiating evidence, the presumption favors the insured, and the insurance company remains fully liable for compensation awarded by the Motor Accident Claims Tribunal.
On this section: Provides for appeal against awards of Motor Accident Claims Tribunal to the High Court
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Josphine James vs United India Insurance Co. Ltd.
Court's Decision & Legal Precedent
In motor accident claims under the Motor Vehicles Act, 1988, an Insurance Company cannot file an appeal challenging the quantum of compensation awarded by the Motor Accidents Claims Tribunal unless it has previously obtained permission from the Tribunal under Section 170(b) to contest the case on merits. The words 'failed to contest' in Section 170(b) include 'failed to file appeal' - thus, if the insured (vehicle owner) does not file an appeal, the Insurance Company cannot challenge the quantum of compensation in appellate proceedings. The Insurance Company's rights are limited to those specified in Section 149(2), which permits it to contest only whether the claimant is entitled to compensation and whether the amount is reasonable, but not to challenge the quantum itself through appeal without prior Tribunal permission.
On this section: Provides procedure for appeal against Tribunal's judgment; Court applied this section in context of determining which parties can appeal and on what grounds
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Madivalappa vs Maharashtra State Road Transport Corporation
Court's Decision & Legal Precedent
In motor vehicle accident compensation cases under the Motor Vehicles Act, 1988, when calculating loss of future earning for a victim aged 27 years with permanent disability, the correct methodology requires application of: (i) multiplier 18 as per Sarla Verma guidelines; (ii) future prospects addition of 40% as per Pranay Sethi precedent to account for expected career advancement; (iii) application of disability percentage to the calculated loss; and (iv) interest at 6% per annum from the date of filing the claim petition. The formula is: Notional Income × 12 × Multiplier × (1 + Future Prospects Rate) × (Disability Percentage/100). Failure to apply these established principles results in inadequate compensation and denial of just relief to the victim. Courts at all levels have a duty to apply these precedents correctly to ensure fair compensation for loss of earning capacity.
On this section: Cited to establish the appellate jurisdiction of the High Court in appeals against awards of Claims Tribunals within 90 days of the award, subject to deposit requirement
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The United India Insurance Co. Ltd. vs Yallappa S/o. Durgappa @ Gadigappa Kadappanavar
Court's Decision & Legal Precedent
In cases where an unauthorized passenger sustains injuries in a goods vehicle, the insurance company must satisfy the claim to the third party in the first instance and subsequently recover the amount from the vehicle owner.
On this section: Statutory provision for filing appeals against tribunal awards.
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Savitri Devi vs Oriental Insurance Co. LTD
Court's Decision & Legal Precedent
When a bachelor deceased is the sole earning member of a large family with multiple dependent members (including aged parents, handicapped siblings, and studying siblings), the deduction for personal and living expenses should be restricted to 1/3rd of the deceased's income rather than 50%, with 2/3rd being treated as contribution to the family, in accordance with the principles laid down in Sarla Verma v. Delhi Transport Corp.
On this section: Provides the appellate jurisdiction for challenging awards passed by Motor Accident Claims Tribunals
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National Insurance Co. Ltd. vs Shri. Ammeruddin Ismail Dukandar
Court's Decision & Legal Precedent
Possession of a valid driving licence is a fundamental prerequisite and the essential link for the development of the jural relationship between the claimant and the insurance company in motor accident compensation claims. When an application is filed seeking direction to produce a driving licence, the court must issue a proper order directing production, and the Tribunal must verify compliance before awarding compensation. Failure to do so constitutes a prima facie error requiring remand for fresh consideration.
On this section: Cited as the statutory basis for filing the appeal against the Motor Accident Claims Tribunal's award
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Satishsingh Bindeshwarsingh vs Dilipkumar Suryanarayan Singh
Court's Decision & Legal Precedent
A claimant who has sustained serious injuries at a young age, even if capable of undertaking light work and assessed with 50% permanent disability, is entitled to compensation for loss of amenities to reflect the deprivation of life's amenities and the impact on future prospects, particularly when the injuries are grave and sustained at a tender age. The quantum of such compensation should be determined by considering the gravity of injuries, the age of the claimant, and the overall impact on quality of life.
On this section: Provides the right of appeal from the Motor Accident Claims Tribunal to the High Court; the appellant preferred this appeal under this section
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 173
What have the courts held on Section 173 of the Motor Vehicles Act?
V. Sudha vs P. Ganapathi Bhat (06 May 2013) is the leading judgment on this section among those set out below: The High Court heard the appeal filed under this provision and modified the tribunal's award. Another 9 judgments on this section are set out below, 6 of them from the Supreme Court. They run from 2007 to 2025.
How do I find court cases under Section 173 of the Motor Vehicles Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 173, section 173 MV Act, section 173 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 10 reported judgments on this section are set out on this page, beginning with V. Sudha vs P. Ganapathi Bhat (06 May 2013).
When did Section 173 of the Motor Vehicles Act come into force?
Section 173 of the Motor Vehicles Act, cited as MV Act 173, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1948 words
- 88. Validation of permits for use outside region in which granted1560 words
- 51. Special provisions regarding motor vehicle subject to hire-purchase agreement, etc1199 words
- 150. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks1102 words
- 96. Power of State Government to make rules for the purposes of this Chapter995 words
- 72. Grant of stage carriage permits868 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.