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Bombay High Court

Ajhar Ali Ejaj AliversusRajiv Rathod Sukhlal Rathod

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

The court allowed the applicants to withdraw 50% of the deposited compensation amount with interest, subject to an undertaking and the balance to be kept in fixed deposit.

Summary

The applicants, Ajhar Ali Ejaj Ali and Arbaz ShamuHammad Pathan, filed civil applications seeking to withdraw a portion of the compensation awarded by a tribunal and deposited by an insurance company. The court examined the tribunal's endorsement of the applicants' entitlement after considering the rival contentions and the need to balance competing interests. It held that permitting a partial withdrawal was appropriate, subject to conditions. Accordingly, the court ordered that the applicants may withdraw 50% of the deposited amount along with accrued interest, provided they give an undertaking that the disbursement remains subject to the final outcome of the appeals. The remaining balance is to be kept in a fixed deposit for three years, renewable until further orders. The applications were therefore partly allowed.

Issues considered

  • Whether the court can permit the applicants to withdraw a portion of the compensation amount deposited by the insurance company pending the final outcome of the appeals

Subjects

  • compensation
  • withdrawal
  • insurance
  • tribunal award
  • fixed deposit
  • interest
  • pending appeal

Judgment

2026:BHC-AUG:42171
                                                  1                      35-CA-10264-26.odt



                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  BENCH AT AURANGABAD


                     35 CIVIL APPLICATION NO. 10264 OF 2026 IN FA/2371/2026

                                        AJHAR ALI EJAJ ALI
                                            VERSUS
                                 RAJIV RATHOD SUKHLAL RATHOD
                                                …
                                               AND
                     39 CIVIL APPLICATION NO. 10271 OF 2026 IN FA/2372/2026

                                 ARBAZ SHAMUHAMMAD PATHAN
                                             VERSUS
                                RAJIV RATHOD SUKHLAL RATHOD
                                                ...
                           Advocate for Applicants : Mr. Moisali A. Syed
                        Advocate for Respondent No.2 : Mr. S. N. Janakwade
                                                ...

                                           CORAM :        SACHIN S. DESHMUKH, J.
                                           DATE       :   10-09-2026
                PER COURT:-

                1.    The applicants have presented these applications 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/s 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 withdraw the amount.


                3.    Thus, the civil applications are partly allowed.
                                   2                      35-CA-10264-26.odt



4.    The applicants are permitted to withdraw 50% of the

deposited amount in this court, alongwith interest accrued

thereon.



5.    The    applicants    shall       furnish   an   undertaking     that

disbursement would remain subject to the final outcome of the

appeals, to the satisfaction of the Registrar (Judicial) of this Court.


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

Nationalized Bank initially for the period of three (3) years, which

is to be renewed periodically until further orders of this court.




                                   [SACHIN S. DESHMUKH]
                                           JUDGE



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