The Gujarat High Court Division Bench comprising Justices M. S. Shah and H. N. Devani on Wednesday upheld the lower court order for increased compensation and directed Air India (formerly Indian Airlines) and the Airports Authority of India to pay a compensation of over Rs. 6 crore to the families of 34 victims of the IA Boeing 737 crash near the Ahmedabad airport in 1988.

As many as 131 people, including the crew members, were killed in the October 19, 1988 crash.

Both the lower court and the High Court agreed with contention of the victims’ families who had claimed that the accident was caused by negligence on the part of the airline and airport authorities.

The High Court, however, changed the compensation percentage payable by the airline and the AAI, making it 90 and 10 respectively. In the lower court order, it was 70 and 30 per cent.
Plea for stay rejected

The High Court rejected the plea for a stay on the operation of Wednesday’s order to allow them to appeal it.

The Bench asked the airline and AAI to calculate the hiked compensation at nine per cent interest per annum from 1989.