Bombay High Court

GANESH SHANKAR KHABALEversusGIRIJA GAURAV KUSALE AND ANOTHER

Disposal: Allowed
Bench: SACHIN SHIVAJIRAO DESHMUKH

Holding

The Labour Court order refusing premature release of the compensation is quashed and the compensation must be disbursed immediately with interest.

Summary

The petitioner, Ganesh Shankar Khabale, challenged a Labour Court order that denied his request to release a compensation amount of Rs.6,25,000 held in a fixed deposit until its maturity. He argued that his age, financial liabilities, and family obligations necessitated early disbursement. The lower court had held that the funds could only be released upon maturity of the deposit. The High Court, considering the petitioner’s circumstances, found merit in his claim and held that the lower court’s reasons did not outweigh his immediate needs. Consequently, the writ petition was allowed, the Labour Court order was quashed, and the authority was directed to pay the full compensation with interest within two weeks.

Issues considered

Whether the Labour Court erred in refusing premature release of compensation held in a fixed deposit
Whether the petitioner’s personal and financial circumstances justify overriding the maturity condition

Subjects

Employees Compensation
Fixed Deposit
Premature Release
Writ Petition
Labour Court
Compensation Disbursement

Judgment

                                  1                    924-WP-1379-26-i.odt




      IN THE HIGH COURT OF JUDICATURE AT BOMBAY
              CIRCUIT BENCH AT KOLHAPUR
             CIVIL APPELLATE JURISDICTION


              WRIT PETITION NO. 1379 OF 2026

                    GANESH SHANKAR KHABALE
                               VERSUS
             GIRIJA GAURAV KUSALE AND ANOTHER
                                 ...
Advocate for Petitioner : Mr. Avesh Ghadge a/w. Mr. Aditya Ghadge
                                 ...

                           CORAM :        SACHIN S. DESHMUKH, J.
                           DATE       :   30-04-2026
PER COURT:-


1.    The petitioner has raised challenge to the order dated

26.11.2025 rendered by the learned Judge, Labour Court /

Commissioner, Employees Compensation, Sangli, below Exhibit-

D-7 in Application ECA No.34/I-6/2024.


2.    The only grievance raised by the petitioner/employee is that

the court below rejected the application for the release of the

compensation amount on the grounds that it had not yet matured.

The lower court observed that the funds were held in a Fixed

Deposit and were intended to be released only upon maturity.


3.    Taking into consideration the petitioner’s age, existing

financial liabilities, and other family obligations, this Court finds

sufficient merit to intervene. The reasons provided by the lower
                                  2                 924-WP-1379-26-i.odt



court for withholding the funds do not outweigh the immediate

requirements of the petitioner.


5.    Consequently, the writ petition is allowed in terms of prayer

clauses (b) and (c).


6.    The order rendered by the learned Judge, Labour Court /

Commissioner, Employees Compensation, Sangli, below Exhibit-

D-7 in Application ECA No.34/I-6/2024, dated 26.11.2025, is

quashed and set aside.


7.    The concerned authority is directed to disburse the entire

compensation amount of Rs.6,25,000/- (Rs. Six Lakh Twenty Five

Thousand) along with accrued interest thereon till date, within a

period of two weeks from today, in favour of the petitioner.




                                  [SACHIN S. DESHMUKH]
                                          JUDGE

rrd

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