Branch Manager,National Insurance Co. Ltd. Thru. Asst. Manager(Legal) N.I.C.L. Legal Hub Lucknow vs Madhu Bharti and 4 Others — Allahabad HC (2025) — LawSathi Research

Branch Manager,National Insurance Co. Ltd. Thru. Asst. Manager(Legal) N.I.C.L. Legal Hub Lucknow vs Madhu Bharti and 4 Others — Allahabad HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interim orders only; appeal itself not disposed and listed for 08.01.2026. Directions: (i) Registry to correct the swapped FAFO 130/136 deposits within two weeks; (ii) claimants-respondents permitted to apply to the Tribunal concerned within ten days for withdrawal, upon which the Tribunal shall release 50% of the deposited amount with interest in equal proportionate shares per the impugned award's directions within four weeks, the remaining 50% to be held in a maximum-interest fixed deposit of a nationalized bank until final decision of the appeal; (iii) statutory amount of Rs.25,000/- to be transmitted to the Claims Tribunal within two weeks for adjustment against the appellant's compensation deposit.

Issue for consideration

Correction by the Registry of the compensation deposits mistakenly swapped between FAFO No. 130 of 2025 and FAFO No. 136 of 2025 (C.M.A. No. IA/4/2025). +2 more

Court's answer

Registry is directed to correct, within two weeks, the compensation deposits that were interchanged between FAFO No. 130 of 2025 and FAFO No. 136 of 2025.

Ratio / Principle

The application for withdrawal of the deposited compensation is allowed to the extent that the claimants-respondents may move an appropriate application for withdrawal before the Tribunal concerned within a period of ten days.

Key takeaways

Once such application is moved, the Tribunal concerned shall release 50% of the deposited amount along with interest in equal proportionate as per the directions given in the impugned award, within four weeks of the application (the order prints the security clause as 'with furnishing any security /indemnity').ratio¶19
The remaining 50% of the deposited amount is directed to be invested in a maximum interest bearing fixed deposit of a nationalized bank till the final decision of this appeal.ratio¶19

Detailed headnote1 paragraphs

Allahabad High Court (Lucknow Bench), Court No. 19 (Hon'ble Prashant Kumar, J.), interim order dated 01.12.2025 on First Appeal From Order No. 130 of 2025 - National Insurance Co. Ltd. v. Madhu Bharti & 4 others. On C.M.A. No. IA/4/2025, the Registry was directed to correct, within two weeks, compensation deposits that had been swapped between FAFO Nos. 130 and 136 of 2025. On C.M.A. No. IA/06/2025, the claimants-respondents' request for withdrawal of the compensation deposited by the insurer in compliance with the Court's order dated 18.12.2024 was allowed conditionally: the claimants may apply to the Tribunal concerned within ten days, upon which the Tribunal shall release 50% of the deposited amount along with interest in equal proportionate shares as per the directions in the impugned award within four weeks, while the remaining 50% is to remain in a maximum-interest fixed deposit with a nationalized bank until final decision of the appeal (security clause printed ambiguously as 'with furnishing any security /indemnity'). The statutory amount of Rs.25,000/- deposited by the insurer is to be transmitted within two weeks to the Claims Tribunal for adjustment against its compensation deposit. Matter listed for 08.01.2026.

HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW

FIRST APPEAL FROM ORDER No. - 130 of 2025

Branch Manager,National Insurance Co. Ltd. Thru. Asst. Manager(Legal) N.I.C.L. Legal Hub Lucknow

.....Appellant(s)

Versus

Madhu Bharti And 4 Others

.....Respondent(s) Counsel for Appellant(s) : Vanya Bharadwaj Counsel for Respondent(s) : Uma Kant, Deo Raj Singh, Shrayansh Verma

Court No. - 19

HON'BLE PRASHANT KUMAR, J.

(Order on C.M.A. No.IA/4/2025)

The application has been moved by the Insurance Company, wherein it is stated that the amount of compensation to be deposited in FAFO No.130 of 2025 has wrongly deposited in FAFO No.136 of 2025 and the amount to be deposited in FAFO No.136 of 2025 has been deposited in FAFO No.130 of 2025.

Registry may correct it within a period of two weeks.

(Order on C.M.A. No.IA/06/2025)

Heard learned counsel for the appellant, learned counsel for the respondent and perused the record.

This is an application for withdrawal of amount of compensation deposited by the appellant Insurance Company in compliance of this Court's order dated 18.12.2024.

In view of the above, application for withdrawal of the money is allowed to the extent that the claimants-respondents may move an appropriate application for withdrawal of the compensation amount before the Tribunal concerned within a period of ten days. If such an application is moved by the claimants-respondents, the Tribunal

FAFO No. 130 of 2025

2

concerned shall release 50% of the deposited amount along with interest in equal proportionate as per direction given in the impugned award with furnishing any security /indemnity within four weeks from moving the application for the same. The remaining 50% amount is directed to be invested in a maximum interest bearing fixed deposit of a nationalized bank till final decision of this appeal.

The statutory amount of Rs.25,000/- deposited by the appellant herein this Court shall be transmitted within two weeks to the Claims Tribunal to be adjusted against the amount of compensation to be deposited by the appellant.

(Order on Appeal)

List this matter on 08.01.2026.

(Prashant Kumar,J.)

December 1, 2025

V. Sinha

Digitally signed by :- VAISHALI SINHA High Court of Judicature at Allahabad, Lucknow Bench