Bombay High Court

VIDYA SANJAY CHAUDHARIversusUnited India Insurance Company Limited Through its Branch Manager

Disposal: Admitted/Allowed/Granted/Rule Absolute

Holding

The Court partially allowed the application, permitting withdrawal of 75% of the deposited amount with interest, subject to a surety for the remaining 25% and an undertaking for 50% of the amount.

Summary

The applicants filed an application seeking to withdraw the compensation amount that had been deposited by United India Insurance Co. Ltd. after a tribunal award. The High Court examined the entitlement of the applicants, the competing interests of the parties, and the need to balance those interests. The Court held that the applicants could be allowed to withdraw a portion of the deposited amount. Accordingly, the Court ordered that 75% of the total deposited amount, together with accrued interest, may be withdrawn, subject to the applicants furnishing a solvent surety for the remaining 25% and an undertaking for 50% of the amount. The balance is to be kept in a fixed deposit with a nationalised bank for three years, renewable until further orders. The application was therefore partly allowed.

Issues considered

Whether the applicants are entitled to withdraw the compensation amount deposited by the insurer pending the final outcome of the appeal
What conditions, if any, may be imposed on such a withdrawal

Subjects

compensation
insurance
withdrawal of deposited amount
appeal
surety
fixed deposit
high court

Judgment

2026:BHC-AUG:45978
                                                                 C.A. No.10822/2026
                                            :: 1 ::




                     IN THE HIGH COURT OF JUDICATURE OF BOMBAY

                                BENCH AT AURANGABAD


                         CIVIL APPLICATION NO.10822 OF 2026 IN
                             FIRST APPEAL NO.1762 OF 2026


            Vidya Sanjay Chaudhari & ors.                   … APPLICANTS

                     VERSUS

            United India Insurance Co. Ltd. & ors.          … RESPONDENTS

                                         .......
            Mr. M.S. Sonawane, Advocate for applicants
            Mr. M.R. Deshmukh, Advocate for respondent No.1.
                                         ....…

                                    CORAM : SACHIN S. DESHMUKH, J.
                                    DATE     : 30th SEPTEMBER, 2026

            PER COURT :


            1.          The applicants have 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 applicants 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
                                                           C.A. No.10822/2026
                                   :: 2 ::


permit the applicant to withdraw the amount.


3.            Thus, the application is partly allowed.


4.            The applicants are permitted to withdraw 75% of the

total deposited amount in this court, along with interest accrued

thereon. However, the applicants shall furnish solvent surety for

25% of the amount and an undertaking for 50% of the amount to

the     satisfaction   of   Registrar   (Judicial)   of   this   Court   that

disbursement would remain subject to final outcome of the appeal.


5.            The balance amount shall be deposited in a Fixed

Deposit of any Nationalized Bank initially for the period of three (03)

years.     The deposit shall be renewed periodically until further

orders of this Court.




                                        (SACHIN S. DESHMUKH, J.)




fmp/-

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