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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