Bombay High Court

Nikhil Sakharam ChavhanversusDIVISIONAL CONTROLLAR MSRTC, AURANGABAD

Disposal: Admitted/Allowed/Granted/Rule Absolute

Holding

The Court held that the applicant may withdraw 75 % of the deposited compensation amount, subject to an undertaking and with the balance kept in fixed deposit until further orders.

Summary

The applicant, Nikhil Sakharam Chavhan, filed an application before the Bombay High Court seeking to withdraw the compensation amount that had been awarded by a Tribunal and deposited by an insurance company. The Tribunal had endorsed the applicant’s entitlement after hearing the rival contentions of the parties. The Court examined the competing interests of the applicant and the respondent and considered the need to balance those interests. It held that allowing a partial withdrawal was appropriate in the circumstances. Consequently, the Court ordered that the applicant may withdraw 75 % of the deposited amount together with accrued interest, subject to an undertaking that disbursement remains contingent on the final outcome of the first appeal. The remaining balance is to be kept in a fixed deposit for an initial period of three years, renewable until further orders of the Court.

Issues considered

Whether the applicant is entitled to withdraw a portion of the compensation amount deposited by the insurance company pending the final determination of the first appeal

Subjects

compensation award
tribunal decree
withdrawal of funds
fixed deposit
pending appeal
civil procedure

Judgment

2026:BHC-AUG:42392
                                                                  C.A. No.10225/2026
                                             :: 1 ::




                      IN THE HIGH COURT OF JUDICATURE OF BOMBAY
                                 BENCH AT AURANGABAD


                        CIVIL APPLICATION NO.10225 OF 2026 IN
                            FIRST APPEAL NO. 2354 OF 2026


            Nikhil Sakharam Chavhan                         … APPLICANT

                     VERSUS

            Divisional Controller, MSRTC, Aurangabad        … RESPONDENT

                                             .......
            Ms M.V. Manal, Advocate for applicant
            Mr. S.N. Janakwade, Advocate for respondent No.1.
                                             ....…

                                    CORAM : SACHIN S. DESHMUKH, J.
                                    DATE      : 15th SEPTEMBER, 2026

            PER COURT :


            1.          The applicant has presented this application seeking

            withdrawal of the amount of compensation awarded by the Tribunal,

            which is deposited by the Insurance Company.


            2.          Considering the facts and circumstances that the entitlement

            of the applicant is endorsed by the Tribunal after considering the rival

            contentions of the litigating sides and to strike the balance in the

            competing interest, it will be appropriate to permit the applicant to
                                                          C.A. No.10225/2026
                                   :: 2 ::


withdraw the amount.


3.           Thus, the application is partly allowed.


4,.          The applicant is permitted to withdraw 75% of the deposited

amount along with interest accrued thereon.


5.           The applicant shall furnish an undertaking to the satisfaction

of the Registrar (Judicial) of this Court that disbursement would remain

subject to final outcome of the First Appeal.


6.           The balance amount shall be kept in Fixed Deposit of any

Nationalised Bank initially for the period of three (03) years, the same

shall be renewed periodically until further orders of this Court.




                                       (SACHIN S. DESHMUKH, J.)


fmp/-

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