Bombay High Court
Ajay Madhukar SonavaneversusThe Oriental Insurance Compny Ltd
- Disposal
- Admitted/Allowed/Granted/Rule Absolute
Holding
The court held that, having regard to the tribunal’s endorsement of the applicant’s entitlement and the need to balance competing interests, it may permit the applicant to withdraw up to 75% of the deposited amount subject to conditions.
Summary
Ajay Madhukar Sonavane applied to the High Court of Bombay seeking to withdraw a portion of the compensation awarded by a tribunal and deposited by Oriental Insurance Company Ltd. The tribunal had affirmed the applicant’s entitlement after considering the rival contentions. The court examined whether it could allow a partial withdrawal while balancing the interests of the parties and preserving the remaining amount pending the final appeal. It held that, given the tribunal’s endorsement and the need to strike a balance, the applicant could be permitted to withdraw 75% of the deposited sum with accrued interest. The court conditioned the withdrawal on an undertaking that disbursement remain subject to the final outcome and directed that the balance be kept in a fixed deposit for three years, renewable until further orders.
Issues considered
- Whether the applicant may be allowed to withdraw a portion of the compensation amount deposited by the insurer pending the final outcome of the appeal?
Subjects
- Compensation
- Insurance
- Partial withdrawal
- Tribunal award
- Fixed deposit
- Court order
Judgment
2026:BHC-AUG:42175
1 37-CA-10267-26.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
CIVIL APPLICATION NO. 10267 OF 2026
IN FA/2200/2026
AJAY MADHUKAR SONAVANE
VERSUS
THE ORIENTAL INSURANCE COMPANY LTD AND ANOTHER
...
Advocate for Applicant : Mr. Pramod C. Mayure
Advocate for Respondent No.1 : Mr. A. S. Usmanpurkar
...
CORAM : SACHIN S. DESHMUKH, J.
DATE : 10-09-2026
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 withdraw the amount.
3. Thus, the application is partly allowed.
4. The applicant is permitted to withdraw 75% of the deposited
amount in this court, alongwith interest accrued thereon.
2 37-CA-10267-26.odt
5. The applicant shall furnish an undertaking that disbursement
would remain subject to the final outcome of this appeal, 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
rrd
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