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Bombay High Court

SUHASINI SADANAND SALUNKHEversusTHE STATE OF MAHARASHTRA THOU SECRETARY

Decided
Disposal
Disposed Off

Holding

The Court ordered payment of Rs. 3 lakhs with interest at 8% per annum from 1 December 2020.

Summary

The petitioner, Suhasini Sadanand Salunkhe, filed a writ petition seeking compensation from the State of Maharashtra and an insurance company for the death of her husband. The insurance company, New India Assurance Co. Ltd., agreed to pay Rs. 3 lakhs but proposed interest at 7.5% per annum from 1 December 2020, instead of the petitioner’s claim for 18% from the date of death (7 May 2014). The Court appreciated the insurer’s approach and the petitioner’s satisfaction, but directed that interest be payable at 8% per annum from 1 December 2020. The Court ordered the total amount, with the specified interest, to be paid to the petitioner within four weeks. Consequently, the writ petition was disposed.

Issues considered

  • What is the appropriate rate and period for interest on the insurance claim?
  • Whether the insurer's offer of Rs. 3 lakhs with modified interest terms is acceptable to the petitioner.

Subjects

  • insurance claim
  • interest rate
  • compensation
  • writ petition
  • High Court

Judgment

SMITA       Digitally signed by
            SMITA JOHNSON
JOHNSON     GONSALVES
            Date: 2026.10.06
GONSALVES   17:59:51 +0530




                       sg                                                                                     903.wp(c)7703-21.docx


                                  IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                          CIVIL APPELLATE JURISDICTION
                                           WRIT PETITION NO. 7703 OF 2021

                   Suhasini Sadanand Salunkhe                                                            … Petitioner

                                  versus
                   The State of Maharashtra Through
                   its Secretary And Ors.                                                                … Respondents
                                                     ----
                   Mr. Govind Solanke, for the Petitioner.

                   Mr. M.M. Pable, AGP, for the Respondent/State.

                   Mr. Devandranath S. Joshi, for Respondent No.4.
                                                    ----
                                                                        CORAM:BHARATI DANGRE &
                                                                                                    ASHISH S. CHAVAN, JJ.
                                                                            DATE: 6th OCTOBER, 2026
                   P.C.:



                   1.             In continuation of our orders dated 24 th August and 10th

                   September, 2026, learned Counsel, Mr. Joshi, appearing on behalf of

                   Respondent No.4/the Insurance Company, has returned with positive

                   instructions. He states, on instructions from the concerned Officer of

                   New India Assurance Co. Ltd., which he represents, that the Insurance

                   Company is willing to pay an amount of Rs. 3 lakhs, being the claim



                                                                 Page 1 of 2
                                                    __________________________________________________

                                                         6th October, 2026
 sg                                                                                   903.wp(c)7703-21.docx


of the Petitioner.   However, as regards the interest, instead of the

interest at the rate of 18% from the date of death of the Petitioner’s

husband, i.e. 7th May 2014, instructions are that the said amount

shall carry interest from 1st December, 2020 at the rate of 7.5% per

annum.



2.    We appreciate the approach adopted by the Insurance Company

and place on record the efforts of Mr. Joshi in persuading the

Insurance Company to agree to payment of Rs.3 lakhs as

compensation, with interest being payable from 1 st December, 2020

instead of from the date of death of the Petitioner's husband. We

record the aforesaid statement. The Petitioner has also expressed her

satisfaction with the same. However, we indicate that the amount

payable shall carry interest at the rate of 8% per annum from 1 st

December, 2020.

      The entire amount, duly computed, shall be paid                                             to the

Petitioner within a period of four weeks from today.

      The writ petition stands disposed of accordingly.



(ASHISH S. CHAVAN, J.)                                                          (BHARATI DANGRE, J.)

                                        Page 2 of 2
                           __________________________________________________

                                 6th October, 2026


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