29-Jul-2025 04:06 PM
1802
New Delhi, Jul 29 ( UNI) The Supreme Court today directed that over Rs 1.2 crore deposited by M/s Kotia Projects, the contractor operating at Harni Lake in Vadodara, be disbursed to the families of 12 children and 2 teachers who died in a tragic boat capsize incident on January 18, 2024.
A Bench comprising Justice BV Nagarathna and Justice KV Viswanathan stayed Gujarat High Court’s full liability order which held the contractor fully liable.
The bench recorded the statement of the senior counsel for the petitioner-firm that they had deposited Rs 81,99,664 and Rs 30,74,880 with the Deputy Collector, Vadodara, and had no objection to the amount being distributed to the bereaved families.
“Taking note of the submission, the Deputy Collector, Vadodara shall release the aforesaid sums to the parents of the deceased children and the family members of the two deceased teachers on a rational basis,” the Court ordered. The disbursal is to be completed within six weeks.
In a significant relief to the contractor firm, the apex court stayed the Gujarat High Court’s order that had directed M/s Kotia Projects to deposit nearly Rs 4 crore as full compensation for the victims of the tragedy.
The Supreme Court issued notice on the Special Leave Petition (SLP) filed by the contractor challenging the High Court's decision, which held the firm solely liable and rejected its plea to involve insurance providers and joint venture partners.
The State of Gujarat informed the Court that the compensation amount was calculated using principles from the Motor Vehicles Act, in the absence of any specific legislation dealing with compensation in boat accident cases.
The apex court also granted liberty to Kotia Projects to approach the Gujarat High Court for impleading its joint venture partners and the insurance company as co-respondents in the ongoing Public Interest Litigation (PIL) concerning compensation for the tragedy.
The Supreme Court directed the High Court to allow such impleadment applications if made.
Earlier, the firm had argued before the High Court that the lake operations were insured and that the insurance company must share liability, but the Sub-Divisional Magistrate rejected the request.
The High Court ruled that the firm's internal disputes or insurance arrangements could not dilute its responsibility towards the victims.
On February 17, 2025, the Gujarat High Court directed Kotia Projects, tasked by the Vadodara Municipal Corporation with the development and operation of Harni Lake to deposit over Rs 3.5 crore in compensation.
The Court allowed phased payment in four instalments, with 25 per cent due by March 31, 2025, and the rest to follow in monthly tranches.
The firm later filed a review petition, claiming that its earlier counsel had no authority to admit liability beyond 25 per cent, and that the High Court’s order relied excessively on counsel’s submissions.
However, on May 9, 2025, the High Court dismissed the review petition, asserting that the order was based on independent judicial reasoning and not merely on counsel's statement.
The Court held the partnership firm, not individual partners, responsible for the compensation, and said insurance coverage and internal disputes were irrelevant. The review petition was dismissed as misconceived and a mere “cloak to escape liability.”
The matter will now continue before the Supreme Court, which has granted interim relief to the firm while ensuring immediate relief to the families of the victims...////...