Vadodara Boat Capsize | Supreme Court Directs Disbursal Of ₹1.2 Crore Compensation, Stays HC Order Holding Contractor Fully Liable

The Supreme Court on Monday directed that the compensation amount of over ₹1.2 crore, deposited by M/s Kotia Projects, the contractor firm operating at Harni Lake in Vadodara, be disbursed to the families of the twelve children and two teachers who died in a boat capsize incident at the lake on January 18, 2024.

“Learned senior counsel for the petitioner submitted that the sum of ₹81,99,664 and a further sum of ₹30,74,880 have been deposited before the Deputy Collector, Vadodara. At this stage, the petitioner would not have any objection for the said amount being distributed to the parents of the children who lost their lives, as well as the family members of the teachers. Taking note, of the submission of learned counsel, the Deputy Collector, Vadodara to release the aforesaid amounts to the parents of the deceased children as well as the family members of the two deceased teachers on a rational basis,” the Court ordered.

A bench of Justice BV Nagarathna and Justice KV Viswanathan directed the Deputy Collector, Vadodara to complete the disbursal is to be completed within six weeks. The Court also issued notice and stayed the Gujarat High Court's order that had imposed the liability for entire compensation of about ₹4 crores on the firm.

The Court issued notice in the plea filed by the contractor firm against Gujarat High Court orders directing it to deposit the entire compensation amount. According to the State of Gujarat, the compensation was calculated by drawing an analogy from the Motor Vehicles Act, since there is no specific statutory provision for boat tragedies.

The Court also granted liberty to the contractor firm to seek impleadment of its joint venture partners as well as insurance company as co-respondents in the PIL pending before the Gujarat High Court regarding the compensation. If such impleadment applications are made, the High Court shall add those entities as parties, the Supreme Court ordered.

In the High Court, Kotia Projects had submitted that the lake had been insured and urged that the insurance company be impleaded in the matter. However, the Sub-Divisional Magistrate had rejected this request, and the High Court noted that internal disputes among partners or the existence of insurance coverage could not absolve the firm of its responsibility. The High Court stated that it was concerned with the victims and their families, and not with the firm's internal arrangements or liabilities.

In February this year, the Gujarat High Court directed M/s Kotia Projects, the firm entrusted by the Vadodara Municipal Corporation with the development and operation of Harni Lake, to deposit over ₹3.5 crore as compensation for the victims.

The firm was permitted to deposit the amount in four instalments, with 25% due by March 31, 2025, and the remaining in monthly intervals thereafter. The firm filed a review petition against this order.

The firm claimed in the review petition that its earlier counsel was not authorised to admit liability beyond 25% and that the statement recorded by the Court was beyond the scope of his instructions.

On May 9, 2025, the Gujarat High Court dismissed the review petition seeking recall of the February 17 order, rejecting the claim that the February order was based solely on the counsel's statement.

It held that the Court had independently assessed the case and that the partnership firm, and not its individual partners, was liable to pay the full compensation. The Court reiterated that any internal disputes among partners were irrelevant to the present proceedings and that insurance coverage was not a subject under consideration. It described the review petition as a “cloak to get away from the rigors of the order” and dismissed it as misconceived.

The firm filed the present SLP before the Supreme Court against the order of the High Court.

Case no. – SLP(C) No. 18681-18682/2025

Case Title – M/S. Kotia Projects v. State of Gujarat