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Bombay High Court

Arbaz Shamuhammad PathanversusRajiv Rathod Sukhlal Rathod

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

The court permitted a partial withdrawal of 50% of the deposited compensation, with interest, subject to an undertaking and a fixed deposit of the balance.

Summary

The applicants, Ajhar Ali Ejaj Ali and Arbaz Shamuammad Pathan, filed civil applications seeking to withdraw a portion of compensation awarded by a tribunal and deposited by an insurance company. The issue before the court was whether the applicants could be permitted to withdraw any part of the deposited amount pending the final outcome of pending appeals. The court examined the tribunal's endorsement of the applicants' entitlement and balanced the competing interests of the parties. It held that allowing a partial withdrawal would be appropriate, subject to safeguards. Accordingly, the court ordered that the applicants may withdraw 50% of the deposited amount with accrued interest, provided they give an undertaking that further disbursement will await the final appeal outcome, and the remaining balance be kept in a fixed deposit for three years.

Issues considered

  • Whether the applicants are entitled to withdraw the compensation amount deposited by the insurance company pending final appeal outcome
  • What conditions, if any, should be imposed on any such withdrawal

Subjects

  • compensation
  • insurance
  • withdrawal
  • civil application
  • partial relief
  • fixed deposit
  • interest

Judgment

2026:BHC-AUG:42172
                                                  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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