Bombay High Court

Vidya Sanjay ChaudhariversusUnited India Insurance Company Limited 02 03 Through its Branch Manager

Disposal: Admitted/Allowed/Granted/Rule Absolute

Holding

The Court partially allowed the application, permitting withdrawal of 75% of the amount with conditions and directing the remaining 25% to be kept in a fixed deposit.

Summary

The applicants filed an application seeking to withdraw the compensation amount awarded by a Tribunal and deposited by United India Insurance Co. The High Court examined the entitlement endorsed by the Tribunal and the competing interests of the parties. It held that a partial withdrawal would be appropriate to balance these interests. The Court ordered that the applicants may withdraw 75% of the deposited amount with accrued interest, subject to furnishing a surety for the remaining 25% and an undertaking for 50% of the amount pending the final appeal outcome. The balance 25% must be placed in a fixed deposit with a nationalized bank for an initial period of three years, to be renewed 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 outcome of the appeal

Subjects

compensation
insurance
tribunal award
withdrawal of funds
surety
fixed deposit
appeal
civil procedure

Judgment

2026:BHC-AUG:45976
                                                                  C.A. No.11362/2026
                                            :: 1 ::




                     IN THE HIGH COURT OF JUDICATURE OF BOMBAY

                                BENCH AT AURANGABAD


                         CIVIL APPLICATION NO.11362 OF 2026 IN
                             FIRST APPEAL NO.1700 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.11362/2026
                                :: 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 total amount along with 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 remaining 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/-

Continue reading with your account

Checking your session…