Sujata Suresh Bhosale and Ors. vs The Branch Manager… — Motor Accident Claims | Bombay HC (2025)

Sujata Suresh Bhosale and Ors. vs The Branch Manager… — Motor Accident Claims | Bombay HC (2025)

What the court decided

AI extract

Outcome

Applicants permitted to withdraw 25% of the amount deposited by the insurer together with accrued interest, subject to an undertaking to redeposit the amount within eight weeks of any adverse order in the Appeal, furnishing of a solvent surety/security for the amount withdrawn, and disbursement in proportion to the Tribunal's apportionment; Appeal posted for further consideration on 26.02.2025.

Issue for consideration

Whether the applicants/original claimants should be permitted to withdraw the amount deposited by the insurer pursuant to the Tribunal's award, pending disposal of the insurer's appeal FA/2847/2024. +1 more

Court's answer

The claimants are entitled to partial withdrawal of the compensation amount, subject to such conditions as would protect the interest of the insurer.

Ratio / Principle

The applicants are permitted to withdraw 25% of the amount deposited by the insurer along with accrued interest thereon, conditional on filing the usual undertaking with the Registrar (Judicial) of this Court that, in case an adverse order is passed in the Appeal, they shall redeposit the amount within a period of eight weeks.

Key takeaways

In addition, the applicants shall furnish a solvent surety/security, to the satisfaction of the Registrar (Judicial) of this Court, for the amount withdrawn.ratio¶¶24
Disbursement of the withdrawn amount shall be in proportion to the apportionment made under the Award of the Tribunal.ratio¶¶25

Detailed headnote1 paragraphs

Civil Application No. 12422 of 2024 in FA/2847/2024, High Court of Judicature at Bombay, Bench at Aurangabad (S.G. Chapalgaonkar, J.; 29 January 2025; neutral citation 2025:BHC-AUG:2661): original claimants in M.A.C.P. No.152/2015 (Motor Accident Claims Tribunal, Osmanabad; accidental death of Suresh Ramchandra Bhosale involving Bolero Jeep bearing Registration No.MH-25-R0821) sought leave to withdraw the amount deposited by the insurer. The Tribunal had accepted the insurer's plea that the Jeep's policy stood cancelled ten months before the accident, yet passed a 'pay and recovery' award relying on Supreme Court judgments on breach of policy; the insurer's pending appeal (FA/2847/2024) contends that no pay-and-recovery award was permissible once the cancellation defence was accepted. Held: the claimants are entitled to partial withdrawal — 25% of the deposit with accrued interest — conditional on an undertaking to the Registrar (Judicial) to redeposit the amount within eight weeks of any adverse order in the Appeal, furnishing a solvent surety/security for the amount withdrawn, and disbursement in proportion to the Tribunal's apportionment. Contentions that the cancellation was invalid, that notice was never validly served on the owner, and that the electronic records lacked a certificate under Section 65-B of the Evidence Act were urged but left undecided in this order. Civil Application partly allowed; Appeal posted for further consideration on 26.02.2025.

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2025:BHC-AUG:2661

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD

CIVIL APPLICATION NO. 12422 OF 2024 IN FA/2847/2024

SUJATA SURESH BHOSALE AND ORS VERSUS

THE BRANCH MANAGER IFFO TOKIO GENERAL INSURANCE CO LTD AND ORS

Mr. Prasanna Shankarrao Chavan, Advocate for Applicants. Mr. Swapnil S. Rathi, Advocate for Respondent No.1.

CORAM : S. G. CHAPALGAONKAR, J. DATED : 29^th JANUARY, 2025.

P.C.:-

By this application, the applicants seeks permission to withdraw the amount deposited by respondent/insurance company in pursuance to the Award passed under Section 166 of the Motor Vehicle Act in M.A.C.P. NO.152/2015 by the Motor Accident Claims Tribunal, Osmanabad.

The applicants are original claimants. They instituted claim for compensation towards accidental death of Suresh Ramchandra Bhosale involving Bolero Jeep bearing Registration No.MH-25-R0821. The respondent/insurer of the Jeep contested claim on the ground that insurance policy in relation to the Jeep in question was canceled 10 months prior to the date of accident and cancellation of policy was duly communicated to the insurer as well as Registering Authority. The Tribunal, after evaluating the evidence, accepted the insurer's defense regarding the cancellation of the policy. However, passed Award in the nature of pay and recovery relying upon the judgment of the Supreme Court of India, most of which deals with the aspect of breach of policy. The aggrieved insurer, therefore, preferred Appeal assailed Award passed by the Tribunal

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on the ground that Tribunal could not have passed Award in the nature of pay and recovery once defence regarding cancellation of policy accepted.

Mr. Chavan, learned Advocate appearing for the applicant endeavours to contend that infact cancellation of insurance policy is not valid. The evidence on record is not sufficient to prove that there was valid service of notice as to the cancellation of insurance policy upon owner of vehicle. He submits that electronic documents are placed on record, which are not supported by certificate under Section 65-B of the Evidence Act. As such, that cannot be accepted as valid evidence. Mr. Chavan would, therefore, seeks permission to withdraw amount deposited by insurer.

Having considered submissions advanced, apparently Tribunal found entitlement of claimants to receive compensation in pursuance to the motor vehicular accident involving Bolero Jeep. The Tribunal has also upheld entitlement of claimants to receive compensation from insurer, although right is given to them to recover the compensation from insurer. In this background, claimants are entitled for partial withdrawal of compensation amount, but subject to such condition, that would protect interest of insurer. In that view of the matter, following order is passed:

ORDER

a. Civil Application is partly allowed.

b. The applicants are permitted to withdraw 25% of the amount deposited by insurer alongwith accrued interest thereon subject to condition that he files usual undertaking with the Registrar (Judicial) of this Court that in case adverse order is passed in

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Appeal, they shall redeposit the amount within a period of eight weeks.

c. In addition to that, they shall furnish a solvent surety/security, to the satisfaction of the Registrar (Judicial) of this Court, for the amount withdrawn.

d. The disbursement of the amount shall be in proportion to the apportionment under Award of the Tribunal.

e. Post the Appeal for further consideration on 26.02.2025.

(S. G. CHAPALGAONKAR) JUDGE

Devendra/January-2025