Bombay High Court

DNYANOBA SANGRAM HANGARGEKARversusTHE NEW INDIA ASSURANCE COMPANY LTD AHAMADPUR AND ORS

Disposal: PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The court held that the applicant may withdraw 75% of the deposited compensation with interest, while the balance must remain in a fixed deposit until the appeal is finally decided.

Summary

The applicant, Dnyanoba Sangram Hangargekar, sought to withdraw the compensation awarded by a tribunal and deposited by The New India Assurance Company Ltd. The insurance company had appealed the award but had complied with the court's order to deposit the amount. The High Court considered the tribunal's endorsement of the applicant's entitlement and the competing interests of the parties. It allowed the applicant to withdraw 75% of the deposited sum along with accrued interest, subject to an undertaking that disbursement remains contingent on the final outcome of the appeal. The remaining 25% was ordered to be kept in a fixed deposit with a nationalized bank for three years, renewable until further orders.

Issues considered

Whether the applicant is entitled to withdraw the compensation amount deposited by the insurer pending the outcome of the insurer's appeal

Subjects

insurance claim
compensation award
tribunal award
withdrawal of deposited amount
appeal
fixed deposit
interest

Judgment

2026:BHC-AUG:38009



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                                             -1-

                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                               BENCH AT AURANGABAD

                         28 CIVIL APPLICATION NO. 3666 OF 2024
                                          IN
                                     FA/3814/2023

                          DNYANOBA SANGRAM HANGARGEKAR
                                           VERSUS
              THE NEW INDIA ASSURANCE COMPANY LTD AHAMADPUR AND
                                             ORS
                                              ...
              Advocate for Applicant : Mr. Suraj V Gundre
              Advocate for Respondent No.1 : Mr. M. R. Deshmukh
                                              ...

                                         CORAM : SACHIN S. DESHMUKH, J.
                                            Date : 21.08.2026


              PER COURT :-

              1.         Heard learned counsel for the parties.


              2.         The Appellant – Insurance Company has presented

              the appeal, while raising an objection to the compensation

              awarded by the tribunal, partly allowing the claim petition of the

              applicant. Pursuant to the order of this court, the insurance

              company has deposited the amount awarded by the tribunal.


              3.         The applicant has presented this application seeking

              withdrawal of the amount of compensation awarded by the

              tribunal, which is deposited by the Insurance Company.
                                                                  28
                                -2-

4.         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, also,

to strike the balance in the competing interest, it will be

appropriate to permit the applicant to withdraw the amount.


5.         Thus, the application is partly allowed. The applicant

is permitted to withdraw 75% of the deposited amount in this

court along with accrued interest thereon.


6.         The applicant shall furnish usual undertaking that

disbursement would remain subject to final outcome of this

appeal.


7.         The balance amount shall be kept in Fixed Deposit of a

Nationalized Bank initially for the period of three (03) years,

which is to be renewed periodically until further orders of this

court.




                                      (SACHIN S. DESHMUKH, J.)

marathe

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