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High Court of Gujarat

CHETANBHAI KISHORBHAI SINDHVADversusNATIONAL INSURANCE CO. LTD

Disposal
38-RULE ABSOLUTE/ALLOWED @ FH

Holding

The High Court set aside the Labour Court order and directed that the remaining Rs 1,07,000 be disbursed to the petitioner.

Summary

Chetanbhai Kishorbhai Sindhvad filed a petition under Articles 226 and 227 of the Constitution and the Workmen’s Compensation Act, 1923, seeking to set aside a Labour Court order that rejected his application to withdraw a fixed deposit of Rs 1,07,000 placed as compensation by National Insurance Co. Ltd. The Labour Court had earlier allowed the claim and deposited Rs 1,26,098, of which only Rs 19,098 was disbursed. The petitioner argued that the respondent had not appealed the award and therefore the remaining amount should be released. The High Court examined the record, noted the absence of any appeal by the insurer, and held that the Labour Court’s order must be quashed and the balance amount be paid to the petitioner via RTGS/NEFT within four weeks. The petition was disposed of and the rule made absolute.

Issues considered

  • Whether the Labour Court order rejecting the withdrawal of the fixed deposit can be quashed.
  • Whether the petitioner is entitled to the remaining compensation amount in the fixed deposit in the absence of an appeal by the respondent.
  • Whether the respondent’s failure to appeal bars the disbursement of the balance amount.

Legislation cited

Subjects

Workmen's CompensationFixed DepositLabour CourtHigh CourtArticles 226Articles 227Compensation DisbursementAppeal

Judgment

     C/SCA/15853/2025                                JUDGMENT DATED: 05/03/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               R/SPECIAL CIVIL APPLICATION NO. 15853 of 2025


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
==============================================================

             Approved for Reporting                 Yes          No

==============================================================
                        CHETANBHAI KISHORBHAI SINDHVAD
                                     Versus
                          NATIONAL INSURANCE CO. LTD
==============================================================
Appearance:
MR SMIT R PAREKH(13848) for the Petitioner(s) No. 1
NISHIT A BHALODI(9597) for the Petitioner(s) No. 1
KRUPALI N BHATT(9455) for the Respondent(s) No. 1
==============================================================

 CORAM:HONOURABLE MR. JUSTICE HEMANT M.
       PRACHCHHAK

                                Date : 05/03/2026

                                  JUDGMENT


1.       RULE returnable forthwith. Ms. Krupali Bhatt, learned
counsel for the respondent waives service of notice of rule on
behalf of the respondent. With the consent of the learned
counsels for the respective parties, the present petition is taken
up for nal hearing today.


2.       Present petition is led by the petitioner under Articles 226
and 227 of the Constitution of India read with the provisions of
Workmen’s Compensation Act, 1923 seeking following reliefs:

         “(A) YOUR LORDSHIPS be pleased to admit and allow this


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     C/SCA/15853/2025                            JUDGMENT DATED: 05/03/2026




         petition.

         (B)     YOUR LORDSHIPS be pleased to pass an appropriate
         order to quash and set aside the order passed by the Ld. Labour
         Court, Rajkot in WC(NF) No. 5/2016 dated 15/02/2024 and
         thereby issuing direction to the learned labour court/concerned
         bank to allow the claimant to withdraw the amount lying in the
         4xed deposit.

         (C) YOUR LORDSHIPS be pleased to pass such other and
         further orders may be deemed just and proper looking to the
         facts and circumstances of the case and in the interest of the
         justice.”


3.       Brief facts giving rise to the present petition are that, the
petitioner had          led a WC (NF) No. 05/2016 before the Labour
Court, Rajkot whereby, the Labour Court vide order dated
27.02.2023 allowed the claim of the petitioner and the
respondent – Insurance Co. deposited an amount of Rs.1,26,098/-
in compliance with the order dated 27.02.2023. That, the
petitioner had led an application for withdrawal of the amount
in xed deposit before the Learned Judge, Labour Court, Rajkot
however, vide order dated 15.02.2024, the application came to
be rejected.


4.       Being aggrieved and dissatis ed with the impugned order
dated 15.02.2024 passed by the Labour Court, Rajkot, the
petitioner has preferred the present petition.


5.       Heard learned counsels Mr. Smit Parekh and Mr. Nishit
Bhalodi for the petitioner and Ms. Krupali Bhatt, learned counsel
for the respondent. Perused the materials available on record.


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     C/SCA/15853/2025                            JUDGMENT DATED: 05/03/2026




6.       Mr. Bhalodi, learned counsel has submitted that the Labour
Court has erred by allowing disbursement of only Rs.19,098/- out
of the total amount deposited by the respondent-insurance
company. He has submitted that no appeal was preferred by the
respondent. He has submitted that the interest accruing on the
amount of the FD of Rs.1,07,000/- is negligible and insu?cient to
meet the petitioner’s requirements. He has submitted that the
interest earned on the FD by the petitioner is less than the
interest payable on the home loan availed of by the petitioner
and, therefore, the respondent would occur nancial loss if the
FD is not withdrawn. Over and above the grounds agitated in the
memo of petition, learned counsel Mr. Bhalodi has urged that the
impugned order passed by the Labour Court is required to be
quashed and set aside and the present petition is required to be
allowed.


7.       I have heard the learned counsels appearing for the
respective parties and perused the material placed on record. I
have also considered the impugned order passed by the Labour
Court. It appears from the record that the amount was deposited
by      the     respondent-insurance     co.   before    the     Workman
Commissioner, Rajkot in compliance of the order dated
27.02.2023 passed in WC (NF) No. 05/2016 whereby, the
Workman Commissioner had allowed the application of the
petitioner for compensation directing the respondent to deposit
the amount of compensation before the concerned Court. It


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      C/SCA/15853/2025                                                   JUDGMENT DATED: 05/03/2026




 appears that since no appeal was                                   led by the respondent
 therefore, the amount of compensation is to be paid to the
 workman            under         the       award         passed          by       the      Workman
 Commissioner, Rajkot. It also appears that the amount of
 Rs.19,098/- was already disbursed in favour of the workman
 however, the remaining amount of Rs.1,07,000/- is lying in xed
 deposit and as the respondent has not challenged the impugned
 award, I am of the opinion that the amount of Rs.107,000/- shall
 be disbursed in favour of the present petitioner by the
 respondent after proper veri cation of the identity and bank
 details through RTGS/NEFT within a period of four weeks from the
 date of receipt of the writ of this order.


 8.       With the aforesaid conclusion, the petition is disposed of.
 Rule is made absolute.



                                                               (HEMANT M. PRACHCHHAK,J)
 ANUSRI



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: ANUSRI VASU(HC02352), ENGLISH STENO GRADE-II\, at High Court of Gujarat on 09/03/2026 17:10:32




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