National Insurance Company Limited, Lucknow Thru. Manager Legal Deptt. vs Dheeraj Sharma and Another — Allahabad HC (2026) — LawSathi Research

National Insurance Company Limited, Lucknow Thru. Manager Legal Deptt. vs Dheeraj Sharma and Another — Allahabad HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Withdrawal application allowed: claimant-respondent may apply to the Tribunal within ten days; Tribunal to release 50% of the deposited compensation with interest as per the impugned award on furnishing a security/indemnity bond within four weeks; remaining 50% to be invested in a maximum interest bearing fixed deposit of a Nationalized Bank till final decision of the appeal; statutory deposit of Rs.25,000/- to be transmitted to the Tribunal within two weeks for adjustment.

Issue for consideration

Whether the respondent-claimant may be allowed to withdraw the compensation amount deposited by the appellant-Insurance Company pursuant to this Court's order dated 03.05.2024, and on what terms, pending final decision of the appeal.

Court's answer

Cause shown in the affidavit filed in support of the withdrawal application is sufficient to the satisfaction of the Court.

Ratio / Principle

The application for withdrawal of the money is allowed to the extent that the claimant-respondent may move an appropriate application for withdrawal of the compensation amount before the Tribunal concerned within a period of ten days.

Key takeaways

If such an application is moved, the Tribunal where the money is deposited shall release 50% of the deposited amount along with interest as per direction given in the impugned award on furnishing a security/indemnity bond within four weeks from moving the application.ratio¶16
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.ratio¶16

Detailed headnote1 paragraphs

Allahabad High Court (Lucknow Bench), Court No. 20; Prashant Kumar, J.; FAFO No. 127 of 2024 - National Insurance Company Ltd. v. Dheeraj Sharma & Anr.; C.M. Application No. IA/3/2025 (Withdrawal of Amount), decided January 8, 2026. On the claimant's plea of financial crisis and need of funds for livelihood and family maintenance, the cause shown in the supporting affidavit was held sufficient and the appellant-insurer raised no objection. The Court allowed withdrawal of the compensation deposited pursuant to its order dated 03.05.2024 only in stages: the claimant-respondent may seek withdrawal before the Tribunal concerned within ten days; the Tribunal shall then release 50% of the deposited amount together with interest as per the impugned award against a security/indemnity bond furnished within four weeks; the remaining 50% is to be invested in a maximum interest bearing fixed deposit of a Nationalized Bank until final decision of the appeal. The statutory deposit of Rs.25,000/- lying with the Court is to be transmitted to the Tribunal within two weeks for adjustment against the compensation deposited. The appeal itself remains undecided.

HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW

FIRST APPEAL FROM ORDER No. - 127 of 2024

National Insurance Company Limited, Lucknow Thru. Manager Legal Deptt.

.....Appellant(s)

Versus

Dheeraj Sharma And Another .....Respondent(s) : Counsel for Appellant(s) Pradeep Kumar Rai Counsel for Respondent(s) : Sandeep Kumar Agrawal, Nishant Verma, Nitin Kumar, Sanjana Mittal, Shivansh Agrawal

.....Respondent(s)

Court No. - 20

HON'BLE PRASHANT KUMAR, J.

C.M. Application No. IA/3/2025 - Withdrawal of Amount

Heard learned counsel for the parties.

This is an application for withdrawal of compensation amount deposited by the appellant-Insurance Company in compliance of this Court's order dated 03.05.2024.

Learned counsel for the respondent-claimant submits that the entire family is facing financial crises and he is in dire need of money for his livelihood and maintenance of the family as such respondent-claimant may be allowed to withdraw the amount deposited by the appellant-Insurance Company.

Cause shown in the affidavit filed in support of the application is sufficient to the satisfaction of the Court.

Learned counsel for the appellant-Insurance Company has no objection.

In view of the above, application for withdrawal of the money is allowed to the extent that the claimant-respondent 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 claimant-respondent, the Tribunal where the money is deposited shall release 50% of the deposited amount along with interest as per direction given in the impugned award on furnishing a security/indemnity bond 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.

FAFO No. 127 of 2024

2

The statutory amount of Rs.25,000/- deposited by the appellant herein this Court shall be transmitted within two weeks to the Tribunal to be adjusted against the amount of compensation deposited by the appellant, if the same has already not been transmitted.

January 8, 2026

Arjun/-

(Prashant Kumar,J.)

Digitally signed by :- ARJUN PRASAD High Court of Judicature at Allahabad, Lucknow Bench