Bombay High Court

LATA SANJAY SWAMI.versusTHE BRANCH MANAGER, HDFC-IRGO GENERAL INSURANCE CO. LTD. AND ORS.

Disposal: PARTLY ALLOWED AND PARTLY DISMISSED

Holding

The Court permits the applicant to withdraw 75 % of the deposited amount with interest, while the balance is to be kept in a fixed deposit until the appeal is finally decided.

Summary

The High Court of Bombay, Aurangabad Bench, heard an application by Lata Sanjay Swami seeking to withdraw a portion of compensation awarded by a tribunal and deposited by HDFC‑Irgo General Insurance Co. The insurance company had appealed the tribunal’s award, but complied with the court’s order to deposit the amount. The applicant argued that, given the tribunal’s endorsement of her entitlement after considering both parties’ contentions, she should be allowed to access the funds. The Court examined the competing interests of the parties and the need to balance them. It ordered that the applicant may withdraw 75 % of the deposited amount together with accrued interest, subject to a usual undertaking that disbursement remains contingent on the final outcome of the appeal. The remaining balance is to be kept in a fixed deposit with a nationalised bank for an initial period of three years, renewable until further orders.

Issues considered

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

Subjects

insurance
tribunal award
compensation
withdrawal of amount
appeal
fixed deposit
interest
high court

Judgment

2026:BHC-AUG:38008



                                                                              36
                                             -1-

                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                               BENCH AT AURANGABAD

                         36 CIVIL APPLICATION NO. 7037 OF 2026
                                             IN
                                       FA/1866/2026
                                  LATA SANJAY SWAMI.
                                           VERSUS
              THE BRANCH MANAGER, HDFC-IRGO GENERAL INSURANCE CO.
                                       LTD. AND ORS.
                                             ...
              Advocate for Applicant : Mr. Swapnil S. Rathi
              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.
                                                                  36
                                -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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