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This is an archive article published on May 28, 2009

SC rejects VMC’s interim relief plea in 1993 Sursagar boat tragedy

The Supreme Court has rejected an interim relief application moved by the Vadodara Municipal Corporation (VMC) to stay an order of the National Consumer Disputes Redressal Commission (NCDRC).

The Supreme Court has rejected an interim relief application moved by the Vadodara Municipal Corporation (VMC) to stay an order of the National Consumer Disputes Redressal Commission (NCDRC). The NCDRC had asked VMC to cough up

Rs 1.08 crore as compensation to the families of the 22 victims who died in 1993 after a boat capsized in Sursagar,a city centre lake maintained by the civic body. According to P V Moorjani,the counsel of the families of the victims,the VMC had initially started boat rides and a boating club,but later,the contract was given to a company named Ripple Aqua Sports in September 1992.

On August 11,1993,visitors had flocked to Sursagar Lake for boating. It was Janmashtami and a holiday. The rush was,therefore,high. Despite boat capacity being 20,the supervisor allowed 38 passengers on board. The boat capsized and 22 people,including the supervisor,met a watery grave; the rest were rescued by the fire brigade. The lake has been under VMC control ever since. As per the contract between the VMC and Ripple Aqua Sports,the latter was required to take appropriate insurance cover. So,it had taken an insurance policy from Oriental Insurance Company Limited.

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After the incident,families of the victims filed a case in the State Consumer Disputes Redressal Commission (SCDRC) in 1993,holding the VMC responsible for negligence. The SCDRC,in its order in 2002,directed the VMC to pay compensation of Rs 77 lakh.

But the VMC appealed in NCDRC and claimed that it is the insurance company that should pay up. The NCDRC,in 2006,rejected the VMC appeal and asked it to cough up Rs 1.08 crore. The NCDRC added that the civic body can recover the amount from the insurance company,but it should pay compensation to the families of the victims. The VMC then appealed in the Supreme Court against the NCDRC order. The SC rejected the plea in its interim order.

Meanwhile,Moorjani filed an execution appeal in the SCDRC asking the VMC to pay the compensation amount. “In the execution appeal,we have requested the court to either imprison the municipal commissioner or release the compensation amount. There is no other option. People have been waiting for years for the compensation,” said Moorjani. The SCDRC has asked the municipal commissioner to remain present on June 22 for the hearing on the compensation amount. VMC’s counsel,Meghashyam Vejanapurkar,said: “The Supreme Court has only rejected the interim application for stay against the NCDRC order. The state commission adjourned the matter to June 22. I cannot comment on the issue as the matter is sub-judice.”

The case is on for over 16 years now. So far,the insurance company has released only Rs 31 lakh in compensation.

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Town Planning Officer Dahyabhai Panchal,who lost his 11-year-old son in the incident,said: “It’s been over 16 years and compensation doesn’t matter to us anymore. It cannot bring my son back to life. But there are people who are struggling to survive,as they lost their breadwinners in the incident. The court should expedite the process.”

Cost of fighting case exceeds compensation

The cost of fighting the case for over 16 years has exceeded the compensation that VMC was supposed to give to families of the 22 victims who died in the tragedy.

P V Moorjani said the compensation amount comes to around Rs 1.08 crore. The case was fought in SCDRC in 1993 and went on till 2002,when the VMC was held responsible for the accident and ordered to pay Rs 77 lakh as compensation. The VMC then decided to move the NCDRC,where the case was fought for the next four years. The NCDRC too held VMC responsible and ordered it to pay up. The VMC then appealed in the Supreme Court.

Asked about the money spent by the VMC on this,Deputy Municipal Commissioner AO Sharma said,“It’s a very old case. I have to go through it. I cannot talk about it now.” VMC’s counsel Meghshyam Vejanapurkar refused to comment saying the amount is yet to be calculated.

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“The hearing took place for 48 days in the SCDRC,and then for four years in the NCDRC. If we consider only the 10 per cent interest in a year,the amount is over Rs 30 lakh. In addition,the counsel’s fee per hearing is also there. A total of 21 appeals were filed by the VMC,14 by the counsels of the victims’ kin and 21 by the contractor,” said Moorjani.

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