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MVA 1988 (Amended 2019)ORIGINALChapter VIII

Section 173

Appeals

Claims Tribunals
Fine: N/ACompoundable: N/AEndorsement: No
BARE ACT PROVISION

Legal Text

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.

Simplified Explanation

Section 173 provides the appeal mechanism for MACT awards — appeals lie to the High Court within 90 days of the award. The 90-day limitation is strict, though courts have condoned delay in exceptional circumstances. The most practically significant provision is the pre-deposit requirement for insurers/owners appealing against MACT awards: before an appeal by the paying party (insurer or vehicle owner) can be entertained, they must deposit the lower of ₹25,000 or 50% of the award with the High Court. This anti-evasion mechanism prevents the common tactic of filing frivolous appeals purely to delay payment — the deposited amount is available to the victim while the appeal proceeds. The High Court hears MACT appeals under its ordinary appellate jurisdiction, applying the same compensation principles. Further appeals to the Supreme Court lie under Article 136 (Special Leave Petition) for important questions of law.

Historical Context

The pre-deposit requirement under Section 173 was introduced to counter the pattern of automatic insurer appeals filed as delay tactics — leaving accident victims with paper awards and no money. The deposit requirement ensures that the victim benefits from the MACT award even during appeal.

Critical Changes

90-day limitation period — strictly applied but condonable.

Pre-deposit: lower of ₹25,000 or 50% of award — insurer cannot appeal without depositing.

Deposited amount can be released to victim pending appeal outcome.

Practical Scenarios

"MACT awards ₹50 lakh on 1 January — insurer must appeal by 1 April (90 days) and deposit ₹25,000 (lower of ₹25,000 and 50% of ₹50 lakh = ₹25 lakh)."
"Victim wants to appeal MACT's low award — can appeal within 90 days without any pre-deposit requirement."

Common Queries

Under Section 173, the appeal to the High Court must be filed within 90 days of the MACT award. Delay can be condoned if sufficient cause is shown, but the 90-day limit is the standard deadline.
No — under Section 173 proviso, the insurer/owner must deposit the lower of ₹25,000 or 50% of the award amount before the High Court will entertain their appeal. This prevents frivolous appeals filed purely to delay compensation.