Bombay High Court

AMOL RAMRAO NELWADE THROUGH NEXT FRIEND DATTATRAY RAMRAO NELWADEversusHDFC ERGO GENERAL INSURANCE CO LTD

Disposal: Admitted/Allowed/Granted/Rule Absolute

Holding

The court permits a partial withdrawal of the deposited compensation amount subject to an undertaking and a surety, with the remainder to be invested in a fixed deposit.

Summary

The applicant, Amol Ramrao Nelwade, through his next friend, sought permission to withdraw the compensation amount that had been awarded by a tribunal and deposited by HDFC Ergo General Insurance Co. Ltd. The High Court examined the competing interests of the parties and the need to balance them. It held that a partial withdrawal could be allowed, subject to safeguards. The court ordered that 50% of the deposited amount, with interest, could be withdrawn upon an undertaking that the disbursement remains subject to the final outcome of the appeal, and an additional 25% could be withdrawn upon furnishing a solvent surety. The balance of the funds was to be invested in a fixed deposit with a nationalised bank for three years, renewable until further orders.

Issues considered

Whether the next friend of the applicant is entitled to withdraw the compensation amount deposited by the insurer pending the final decision of the appeal
What conditions, if any, should be imposed on such withdrawal

Subjects

insurance
compensation
withdrawal
next friend
court order
fixed deposit
partial relief

Judgment

2026:BHC-AUG:42803



                                                                   26 CA No.6260.2026
                                              -1-

                      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 BENCH AT AURANGABAD

                          CIVIL APPLICATION NO. 6260 OF 2026
                                   IN FA/1287/2026

                   AMOL RAMRAO NELWADE THROUGH NEXT FRIEND DATTATRAY
                                    RAMRAO NELWADE
                                        VERSUS
                           HDFC ERGO GENERAL INSURANCE CO LTD
                                             ***
              Advocate for Applicant : Mr. Manoj D. Shinde
              Advocate for Respondent No. 1 : Mr. M. R. Deshmukh
                                             ***

                                  CORAM : SACHIN S. DESHMUKH, J.
                                    Date : 21st September, 2026

              PER COURT :-


              1.          This application is presented by the applicant, through

              the Next Friend, seeking withdrawal of the compensation amount

              awarded by the Tribunal and deposited before this Court by the

              Insurance Company.


              2.          Having considered the facts and circumstances and the

              rival contentions of the parties, this Court deems it appropriate to

              strike a balance between competing interests and permit the

              withdrawal of the deposited amount.


              3.          Accordingly, the application is partly allowed on the

              following terms :
                                                          26 CA No.6260.2026
                                      -2-



      (a)     The Next Friend of the applicant is permitted to withdraw
      50% of the deposited amount, along with accrued interest,
      subject to filing undertaking that the disbursement shall
      remain subject to the final outcome of this appeal.


      (b)     Apart from above, the Next Friend is permitted to
      withdraw an additional 25% of the deposited amount, along
      with accrued interest, subject to furnishing a solvent surety to
      the satisfaction of the Registrar (Judicial) of this Court.


      (c)     The remaining amount shall be invested in a Fixed
      Deposit with any Nationalised Bank initially for a period of
      three (03) years, which shall be renewed periodically until
      further orders of this Court.


                                            (SACHIN S. DESHMUKH, J.)

Omkar Joshi

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