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The Supreme Court has agreed to expedite hearing of a compensation dispute arising from the 1988 Ahmedabad air crash, nearly four decades after the accident claimed 133 lives. The case could have wider implications for the manner in which compensation is assessed in aviation accidents.
A Bench headed by Chief Justice of India (CJI) Surya Kant on Monday directed that the matter be placed before a Bench comprising Justices Aravind Kumar and N V Anjaria, which had previously dealt with the dispute.
“List before the bench presided by Justice Aravind Kumar,” the CJI said.
The development follows a plea by Air India seeking an early hearing. The matter was last taken up by the Supreme Court in December 2025 but was not listed thereafter.
At the centre of the dispute is the legal basis for determining compensation payable to victims of an air crash. The court will have to consider whether the compensation principles evolved for road accidents under the Motor Vehicles Act can be applied to aviation accidents, or whether claims arising from air crashes require a distinct approach.
Submissions made on behalf of victims’ families contend that applying the Motor Vehicles Act formula mechanically to air crashes would be inappropriate. Unlike road users, airline passengers have no control over the operation, maintenance or safety of an aircraft and ordinarily have little understanding of its technical functioning, the submissions argue.
The claimants have instead urged the court to assess compensation under general principles of tort law, with the objective of ensuring fair and adequate compensation. They have also sought consideration of factors including the victim’s actual income, future earning potential and changes in earnings over the course of their career, rather than relying exclusively on standardised formulas developed in the context of road accidents.
The SC’s decision to revive the matter comes against the backdrop of the Air India crash last year that killed 260 people. Several petitions relating to aviation safety and the investigation into that accident are also pending before the apex court.
The underlying dispute stems from the crash of Indian Airlines Flight IC-113 on October 19, 1988. The Mumbai-Ahmedabad flight crashed while approaching Ahmedabad airport. There were 135 people on board, including six crew members. Of the 133 people killed, two passengers survived, with one suffering significant physical and psychological disabilities.
Families of those who died and the survivors subsequently filed 38 civil suits between 1989 and 1992 seeking compensation.
The Ahmedabad City Civil Court adjudicated the claims in 2002. Appeals were later considered by the Gujarat High Court, which passed its decision in 2009 and modified several compensation awards.
The matter reached the SC in 2010. In April that year, the apex court recorded that the compensation determined against Indian Airlines had been deposited with the Ahmedabad City Civil Court along with interest.
The Airports Authority of India had also deposited 30 per cent of the compensation. The long-running litigation has now returned to the Supreme Court, with the parties set to argue over the legal framework that should govern compensation for victims of aviation accidents.
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