Bombay High Court
CHAGAN SHANKAR NILversusTHE STATE OF MAHARASHTRA THROUGH COLLECTOR, AURANGABAD AND OTHERS
- Disposal
- Admitted/Allowed/Granted/Rule Absolute
- Bench
- SHAILESH P BRAHME
Holding
The condition of furnishing a bank guarantee may be modified to permit withdrawal of the balance upon furnishing a solvent surety/security satisfactory to the Registrar (Judicial).
Summary
The petitioners sought modification of a 26‑Nov‑2014 order that allowed them to withdraw a sum subject to a bank guarantee of 25% of the amount. They argued that furnishing such a guarantee was onerous and impeded withdrawal of the balance. The respondent, the State of Maharashtra, opposed dilution of the condition, emphasizing protection of its interest and preferring final disposal of the matter. The Court noted that the petitioners could receive 25% upon an undertaking and 50% upon furnishing a solvent surety, and found no reason to reject their difficulty. Accordingly, the Court modified the condition, permitting the balance to be released upon a satisfactory solvent surety/security, and ordered the appeals to be listed for final hearing.
Issues considered
- Whether the condition of furnishing a bank guarantee of 25% of the amount is valid and enforceable in the context of the withdrawal order.
- Whether the condition can be modified to allow withdrawal upon furnishing a solvent surety/security instead of a bank guarantee.
Subjects
- modification of order
- bank guarantee
- solvent surety
- civil application
- high court
- procedural law
- withdrawal of funds
Judgment
1 49-CA.11156-25 & ors.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
49 CIVIL APPLICATION NO. 11156 OF 2025
IN FA/2092/2024
KARBHARI BAPU NIL
VERSUS
THE STATE OF MAHARASHTRA THROUGH COLLECTOR,
AURANGABAD AND OTHERS
WITH CIVIL APPLICATION NO. 13368 OF 2015 IN
FA/2657/2015 WITH FIRST APPEAL NO. 2657 OF 2015 WITH
FIRST APPEAL NO. 2656 OF 2015 WITH FIRST APPEAL NO.
2091 OF 2024 WITH FIRST APPEAL NO. 2658 OF 2015 WITH
CIVIL APPLICATION NO. 13367 OF 2015 IN FA/2658/2015
WITH CIVIL APPLICATION NO. 11157 OF 2025 IN
FA/2093/2024 WITH CIVIL APPLICATION NO. 11154 OF 2025
IN FA/2090/2024
...
Advocate for Applicants in all : Mr. Kasar Rajendra Sudam.
AGP for Respondent/s-State : Mr. S. V. Hange.
Advocate for Respondent No.3 : Mr. D. B. Pawar (Through V.
C.).
...
CORAM : SHAILESH P. BRAHME, J.
DATE : 23.01.2026
PER COURT :-
1. Applicants seek modification to the order dated
26.11.2014.
2. They are permitted to withdraw amount on certain
conditions. The condition No.(iii) pertains to furnishing of
bank guarantee which is to the extent of 25% of the amount. It
is contended that applicants are unable to furnish the bank
2 49-CA.11156-25 & ors.odt
guarantee and the condition is very onerous. They are unable
to withdraw that part of the amount.
3. Learned counsel for the respondent/acquiring body
would submit that the matter be listed for final disposal
instead of deciding the applications. He would further submit
that interest of the acquiring body needs to be protected and
the condition imposed may not be diluted.
4. Applicants are permitted to receive 25% of the amount
on furnishing undertaking and 50% of the amount on
furnishing solvent surety/security. Maximum amount is
disbursed on stringent condition. There is no reason to doubt
the difficulty of the applicants. Ends of the justice would be
served in modifying the condition of bank guarantee.
5. The applicants shall be permitted to receive balance
amount on furnishing solvent surety/security to the satisfaction
of the Registrar (Judicial) of this Court.
6. Civil applications for modification are allowed.
7. List the appeals for final hearing on 24.02.2026.
(SHAILESH P. BRAHME, J.)
...
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