Bombay High Court

R L STEELS AND ENERGY LIMITED.versusTHE NEW INDIA ASSURANCE CO LTD.

Disposal: Admitted/Allowed/Granted/Rule Absolute

Holding

The court allowed the civil application, permitting withdrawal of Rs.79,41,114 with interest at 14% per annum, subject to an undertaking to redeposit if the decree is varied by the Supreme Court.

Summary

The applicant, R L Steels And Energy Ltd., filed a civil application seeking permission to withdraw the decree amount of Rs.79,41,114 awarded in a first appeal, together with interest at 14% per annum, which was already deposited with the court. The respondent, New India Assurance Co Ltd., opposed the application, arguing that the applicant might file a Special Leave Petition in the Supreme Court and that the interest rate and lack of security could prejudice the respondent. The court examined the submissions and found no impediment to allowing the withdrawal, noting that the respondent's concerns could be mitigated by an undertaking. Consequently, the court ordered that the applicant may withdraw the amount with interest at the stipulated rate, subject to an undertaking to redeposit if the decree is varied by the Apex Court, and left the respondent free to claim any balance. The civil application was thus allowed and disposed of.

Issues considered

Whether the applicant may withdraw the decree amount pending a possible Supreme Court SLP.
Whether the interest rate of 14% per annum is appropriate for the withdrawn amount.
Whether the respondent requires a bank guarantee or other security before allowing withdrawal.

Subjects

civil procedure
execution of decree
interest on decree
Special Leave Petition
undertaking
withdrawal of deposited amount

Judgment

                                    (1)                    907-CA-8814-2026




             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                        BENCH AT AURANGABAD

                907 CIVIL APPLICATION NO. 8814 OF 2026
                            IN FA/2267/2025

                     R L Steels And Energy Limited.
                                 VERSUS
                   The New India Assurance Co Ltd.
                                   ...
Mr. P. R. Katneshwarkar, Senior Advocate i/by Mr. B. B. Yenge, Advocate
for Applicant.
Ms. Anagha V. Rotte, Advocate for Respondent.

                                 CORAM : KISHORE C. SANT &
                                                JITENDRA JAIN, JJ.

                                 DATE       : 20th AUGUST 2026.

PC :-

1.      Heard Mr. Katneshwarkar, learned Senior Advocate for the

Applicant,     and     Ms.    Rotte,      the    learned     Advocate         for

Respondent/Insurance Company.


2.      This application is preferred seeking withdrawal of the amount as

per judgment and order dated 22/06/2026 passed by this Court in First

Appeal. The amount is already deposited in the office of this Court as

per decree passed by the trial Court and is lying in deposit as on today.
                                    (2)                 907-CA-8814-2026




3.    This Court, by way of judgment and award, partly allowed the

appeal holding that the applicant is entitled to get the amount of

Rs.79,41,114/- with interest at the rate of 14% per annum.


4.    Now, the application is vehemently opposed by the learned

Advocate for the respondent/Insurance Company. She has also filed an

affidavit-in-reply.   The   main   ground   of   opposition   is   that    the

applicant/Orig. respondent is intending to file SLP in the Hon’ble

Supreme Court. Second ground is about rate of interest. Orally, it is

argued that this Court has extended the interim relief by way of six

weeks from the date of judgment and award. Now, it is only a question

of four weeks for the expiry of limitation of 90 days. If the amount is

withdrawn, it would cause prejudice to the rights of the parties. She

submits that in case the amount is to be withdrawn atleast bank

guarantee be taken from the applicant to secure the interest of

respondent. She also submits that the rate of interest is also a matter of

serious contest. The applicant be allowed to withdraw only the amount

without interest. She thus submits that the application deserves to be

rejected.
                                           (3)                    907-CA-8814-2026




5.           This Court has considered the submissions. Now, there are two

Courts in favour of the applicant. This Court does not see any

impediment in allowing the application. The only anxiety of the

respondent can be addressed by taking sufficient care. Hence, following

order:

                               ORDER

             (i)    Civil Application stands allowed.
             (ii)   The applicant is permitted to withdraw an amount of
             Rs.79,41,114/- alongwith interest at the rate of 14% per
             annum till the date of deposit of amount in the office of this
             Court and thereafter at the bank rate till the date of
             withdrawal.
             (iii) The     withdrawal    be      permitted   on     furnishing
             undertaking stating that in case the judgment and decree is
             varied by the Hon’ble Apex Court, the applicant shall deposit
             the amount within 12 weeks thereafter alongwith interest.
             (iv) It is open for the Respondent/Insurance Company to
             pray for refund of the balance amount.
6.           With these, civil application stands disposed off.



     [JITENDRA JAIN, J.]                             [KISHORE C. SANT, J.]
D.A.ETHAPE

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