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Bombay High Court

SMT.MANISHA BABAN WAKADE AND ORS.versusMAGMA HDI GENERAL INSURANCE CO. LTD. AND ANR

Decided
Disposal
Disposed Off

Holding

The court allowed the withdrawal of 50 % of the deposited compensation amount with interest, subject to the final outcome of the insurer's appeal.

Summary

The widow and minor children of a deceased driver applied for interim relief to withdraw the compensation amount deposited by the insurer after a Commissioner under the Employees Compensation Act, 1923 awarded Rs 11,98,500 with interest. The insurer, Magma HDI General Insurance Co. Ltd., had appealed the award, arguing that the amount should not be released pending the appeal. The court considered that the applicants, being financially weak, should not be deprived of the award merely because the insurer filed an appeal, while also protecting the insurer’s interest if it ultimately succeeds. Consequently, the court permitted the applicants to withdraw 50 % of the deposited amount with accrued interest, subject to the final outcome of the appeal and any directions for return. The interim application was thereby disposed of without prejudice to the merits of the appeal.

Issues considered

  • Whether the applicants can withdraw a portion of the compensation amount deposited pending the insurer's appeal under the Employees Compensation Act, 1923.

Legislation cited

Subjects

  • Employees Compensation
  • interim relief
  • insurance liability
  • appeal
  • withdrawal of funds
  • widow
  • minor children

Judgment

                                                                         906-7198-2026.DOC



              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                     CIVIL APPELLATE JURISDICTION

                   INTERIM APPLICATION NO. 7198 OF 2026
                                    IN
                      FIRST APPEAL ST. NO. 378 OF 2026


Smt. Manisha Baban Wakade and ors.                               ...Applicant(s)
IN THE MATTER OF

Magma HDI General Insurance Co. Ltd. And another            …      Appellant(s)
      Versus
Smt. Manisha Baban Wakade and ors.                               ...Respondent(s)
                                   _______
Mr. Vasant More, Advocate for the Applicant.
Ms. Kalpana Trivedi, Advocate for Respondent No. 1.
                                        _______

                       CORAM:                 AARTI SATHE, J.

                       DATE:                  11th SEPTEMBER, 2026

P.C.

1.       This Interim Application has been filed praying for the following reliefs.

         “(a) That, the compensation amount deposited by the Appellant
         before the Learned Commissioner for employees compensation and
         Judge, 10th Labour Court, Mumbai may be released and handover
         to the applicant alongwith accrued interest thereon.”

2.       The Applicants are the widow and minor children of the deceased employee

Mr. Baban Wakade who was working as a driver of Respondent No.2. It is an

admitted position that he died due to heart attack on 29 th June 2022 during the

course of his employment. The Applicant was driving Vehicle No. MH-14-JL-

3561 which was owned by Respondent No.2.

3.       The learned Commissioner for Employees Compensation has, by order

dated 17th July 2025, awarded compensation of Rs. 11,98,500/- along with 12%


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interest from the date of accident till its realization. The Vehicle No. MH-14-JL-

3561 which was being driven by the deceased Mr. Baban Wakade was insured with

the Appellant-Insurance Company.

4.       Learned counsel appearing on behalf of the Applicants submits that the

widow and the minor children come from a relatively weak economic background

and they have no other sufficient source of income and hence, the amount which

has been sought to be withdrawn would help them to survive and ensure that their

day to day needs are met.

5.       He has for further submitted that the amount represents compensation

awarded to an employee under the Employees Compensation Act, 1923 and that

the Applicant ought not be deprived of the benefit of the award merely because the

insurer has preferred an appeal. It is submitted that the employer as well as the

insurer have been held liable under the impugned award.

6.       Learned counsel appearing on behalf of the Appellant- Insurance Company

has opposed the relief as sought in the present Interim Application and has

submitted that an amount of Rs. 16,54,784/- has been deposited before the Trial

Court pursuant to the order dated 17th July 2025, passed by Learned

Commissioner for Employees Compensation. She has further submitted that the

Appellant- Insurance Company has seriously disputed its liability in the First

Appeal and therefore the Applicant ought not to be permitted to withdraw the

amount pending adjudication of the Appeal.

7.       Considering the averments in the Application, this Court deems it fit to

allow the Application. At this stage it is not necessary to finally adjudicate upon the



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grounds raised in the First Appeal. The rights and contentions of the parties on the

merits of the Appeal are expressly kept open. Merely because the Appellant-

Insurance Company has filed the Appeal, cannot result in the Applicant being

deprived of the benefit of the amount. At the same time the interest of the

Appellant-Insurance Company also requires to be protected in the event the

ultimately succeeds. The withdrawal of the amount is therefore subject to the

outcome of the Appeal. In the circumstances and without expressing any opinion

on the merits of the First Appeal, the following order is passed:-

                                        ORDER

I)       The Applicants are permitted to withdraw 50% of the amount deposited in

the Trial Court along with interest accrued thereon within a period of three weeks

from today.

II)      The aforesaid withdrawal is subject to the outcome of the First Appeal, and

the Applicant shall abide by any directions regarding return of money as passed by

this Court at the time of disposal of First Appeal in the event the Appellant-

Insurance Company succeeds.

III)     In view of the aforesaid, this Interim Application stands disposed of.

IV)      The Trial Court to act on the authenticated copy of this order.




                                                   (AARTI SATHE, J.)




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