Gujarat High Court Seeks Insurer's Stand On Liability For Vadodara Boat Capsize Compensation

The Gujarat High Court on Friday (November 28) issued notice to the insurance company with whom contractor firm M/s Kotia Projects is stated to have an insurance policy with respect to the boating activities provided at Vadodara's Harni lake, in a suo motu PIL regarding the 2024 boat capsize incident. 

For context, the court had in 2024 taken suo-motu cognizance of the incident which led to the death of 12 children and 2 teachers. The court today thus asked the insurer to explain as to why compensation determined by the SDM and deputy collector to the kin of the deceased and injured be not fastened upon it.

The court was hearing an application moved by M/s Kotia Projects seeking impleadment of two new parties as respondents–Tristar Enterprise and Dolphin Enterprise which the applicant stated were its Joint Venture partners and that there was a tripartite agreement executed between it and the two JV partners to run the project and sub-contract the boating activities. In July, the Supreme Court had granted liberty to the contractor firm to seek impleadment of its joint venture partners and insurance company as co-respondents in the PIL pending before the Gujarat High Court regarding the compensation.

Issuing note to the United Insurance Company a division bench of Chief Justice Sunita Agarwal and Justice DN Ray in its order dictated:

"Let a notice be issued to newly impleadment respondent namely United India Insurance Company with which according to the petitioner there was an insurance policy operating for the period 9-1-2024 to 8-1-2025 to show cause as to why the compensation determined by SDM and deputy collector under directions issued by this court...shall not be fastened upon it". 

The court further noted the response of Vadodara Municipal Corporation (VMC) to the applicant's impleadment application which stated that the corporation had not granted permission for sub-contract the activities

"Having gone through the affidavit of the Vadodara Municipal Corporation to the impleadment application seeking impleadment of two private persons in the writ petition, pertinent is to record that there is a categorical statement in the corporation's affidavit that the alleged tripartite agreement 8-6-2023 executed between opposite party no 5 Tristar Enterprise and Dolphin Entertainment and Kotia projects has not been entered with permission granted to M/s Kotia projects to sub-contract or delegate boating activities to any third party. Upon re-verification, the record of the corporation indicates no prior permission was sought nor any information was communcated by contractor with regard to sub-contrracting boating activity nor any such permission was granted by corporation".

The court allowed Kotia projects application to implead the Joint Venture partners as respondents in writ petition. 

Regarding the liability of the newly impleaded private respondents, on the alleged tripartite agreement entered into between them and Kotia projects, the court noted that the question pertained to as to how the liability for compensation determined under court's order  can be fastened upon the entities. This, in view of the fact that there was no permission given by VMC to sub contract the project. 

"The question before is as to whether the tri-partite agreement dated 8-6-2023 between respondent 4 (Kotia Projects) and newly impleaded respondents can be said to be an agreement which would fall within the areas covered by the original contract between Kotia projects and VMC. This question is to be answered by respondent 4 before we issue notice to newly impleaded respondents," the court said. 

It thus granted time to the counsel for the applicant to enable him to make submission on this aspect. 

The matter is next listed on January 16, 2026. 

Case title: RE-MANAGEMENT OF THE WATER BODIES SUCH AS RESERVOIRS/PONDS/RIVERS/LAKES IN THE STATE OF GUJARAT, & ANR. v/s STATE OF GUJARAT & ORS.

R/WPPIL/9/2024