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Bombay High Court

Shobha Dattatray KhodalversusDipak Shivaji Bhand

Disposal
Admitted/Allowed/Granted/Rule Absolute

Holding

The Court held that the applicants may withdraw 75% of the awarded compensation with interest, subject to an undertaking, while the balance remains in a fixed deposit until the appeal is finally decided.

Summary

The applicants filed a civil application seeking to withdraw the compensation awarded by the Motor Accident Claims Tribunal in a motor accident case. The insurance company, as appellant, challenged the tribunal's award and appealed to the High Court. The Court examined the tribunal’s endorsement of the applicants’ entitlement after considering the rival contentions and the need to balance competing interests. It held that it was appropriate to permit the applicants to withdraw 75% of the awarded amount together with accrued interest, subject to an undertaking that the disbursement remains contingent on the final outcome of the appeal. The remaining balance was ordered to be kept in a fixed deposit for two years, renewable until further orders. Consequently, the civil application was partly allowed.

Issues considered

  • Whether the applicants are entitled to withdraw part of the compensation awarded by the Motor Accident Claims Tribunal pending the appeal.
  • Whether the Court can condition the withdrawal on the final outcome of the appeal.
  • Whether the balance of the compensation must be kept in a fixed deposit pending final disposal.

Subjects

  • compensation
  • withdrawal
  • Motor Accident Claims Tribunal
  • insurance appeal
  • civil application
  • fixed deposit
  • interest
  • partial relief

Judgment

2026:BHC-AUG:38967
                                                  1                      9-CA-9709-26.odt




                       IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  BENCH AT AURANGABAD


                              CIVIL APPLICATION NO.9709 OF 2026 IN
                                 FIRST APPEAL NO. 1674 OF 2025

                           SHOBA DATTATRAY KHODAL AND OTHERS
                                            VERSUS
                             DIPAK SHIVAJI BHAND AND ANOTHER
                                              ...
                          Advocate for Applicants : Mr. Ajit B Chormal
                     Advocate for Respondent No.2 : Mr. Mohit R. Deshmukh
                                              ...

                                           CORAM :        SACHIN S. DESHMUKH, J.
                                           DATE       :   28-08-2026
                PER COURT:-

                1.    The   applicants    have    presented     application   seeking

                withdrawal of the amount of compensation.


                2.    The appellant – insurance Company has presented the

                appeal, while raising an objection to the compensation awarded by

                the tribunal, allowing the claim petition of the applicants.

                Pursuant to the order of this court, the insurance company has

                deposited the amount awarded by the tribunal.


                3.    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 permit the

                applicants to withdraw the amount.
                                  2                      9-CA-9709-26.odt



4.    Thus, the civil application is partly allowed.


5.    The applicants are permitted to withdraw 75% of the amount

with accrued interest deposited in this court to the extent of

apportionment given in the order of the Motor Accident Claims

Tribunal on furnishing usual undertaking to the satisfaction of the

Registrar (Judicial) of this Court that the disbursement remains

contingent upon the final outcome of this appeal.


6.    The balance amount shall be kept in the Fixed Deposit of any

Nationalized Bank initially for the period of two (2) years, which is

to be renewed periodically until further orders of this court.




                                  [SACHIN S. DESHMUKH]
                                          JUDGE




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