The New India Assurance Co. Ltd. Divisional Manager, Solapur Thr. Mumbai Legal Hub vs Amol S/O Subhash Bankar and Ors. — Bombay HC (2025) — LawSathi Research

The New India Assurance Co. Ltd. Divisional Manager, Solapur Thr. Mumbai Legal Hub vs Amol S/O Subhash Bankar and Ors. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interim Application allowed in terms of prayer clause (a) and disposed of: the Applicant's undertaking to deposit the entire compensation with accrued interest with the Tribunal within six weeks was accepted (failing which the stay stands vacated without further reference); Respondent No.1 was permitted to withdraw Rs.10,00,000/- with proportionate interest subject to an undertaking to refund with interest if the Appellant succeeds in the Appeal; the Tribunal was directed to invest the remaining compensation with a nationalized bank giving the highest interest from time to time.

Issue for consideration

Whether the Applicant/Appellant's undertaking to deposit the entire compensation amount with accrued interest with the concerned Tribunal within six weeks should be accepted and the Interim Application disposed of accordingly. +1 more

Court's answer

The statement of the Applicant's advocate that the entire compensation amount with accrued interest would be deposited with the concerned Tribunal within six weeks is accepted as an undertaking given to the Court; in view thereof, the Application is allowed in terms of prayer clause (a) and stands disposed of.

Ratio / Principle

If the Applicant fails to deposit the compensation amount within the stipulated period, the order of stay shall stand vacated without further reference to this Court.

Key takeaways

Considering that Respondent Nos.2 and 3 are minors, Respondent No.1 is permitted to withdraw Rs.10,00,000/- (Rupees Ten Lakhs) along with proportionate interest, subject to the usual undertaking that if the Appellant succeeds in this Appeal, Respondent No.1 will refund the said amount along with interest as directed by this Court.ratio¶19
The Tribunal shall invest the remaining amount of compensation with a nationalized bank giving the highest interest from time to time.ratio¶19

Detailed headnote1 paragraphs

Interim Application No. 12390 of 2024 in First Appeal (St.) No. 18471 of 2024 — The New India Insurance Co. Ltd. v. Amol s/o. Subhash Bankar and Ors. (Bombay High Court, Civil Appellate Jurisdiction, Shyam C. Chandak, J., 05.05.2025): The Applicant/Appellant (insurer) gave an undertaking to deposit the entire compensation amount with accrued interest till date with the concerned Tribunal within six weeks; the statement was accepted as an undertaking to the Court, the Interim Application was allowed in terms of prayer clause (a) and disposed of, with the stipulation that failure to deposit within the stipulated period would cause the order of stay to stand vacated without further reference to the Court. Considering that Respondent Nos.2 and 3 are minors and that the Claimants (husband and minor children of the deceased, whose claim was filed in 2020) had long awaited compensation, Respondent No.1 was permitted to withdraw Rs.10,00,000/- (Rupees Ten Lakhs) with proportionate interest upon the usual undertaking to refund the amount with interest if the Appellant succeeds in the Appeal; the Tribunal was directed to invest the remaining compensation with a nationalized bank giving the highest interest from time to time.

31(C) IA12390.2024.doc

P.H. Jayani

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

INTERIM APPLICATION NO. 12390 OF 2024 IN

FIRST APPEAL (ST.) NO. 18471 OF 2024

The New India Insurance Co. Ltd. …. Applicant V/s. Amol s/o. Subhash Bankar and Ors. …. Respondents

Mr. Devendranath S. Joshi for the Applicant. Mr. R.S. Alange for Respondent Nos.1 to 3.

CORAM : SHYAM C. CHANDAK, J.

DATED : 05^th MAY, 2025

P.C. :-

. Heard learned Advocate for the parties.

Mr. Joshi, learned Advocate states that the Applicant/ Appellant would deposit entire amount of compensation along with accrued interest till date with the concerned Tribunal within six weeks from today. He further states that the said statement be accepted and the Application be disposed of, accordingly.

The statement made by Mr. Joshi is accepted as an undertaking given to the Court. In view thereof, the Application is allowed in terms of prayer clause (a) and stands disposed of.

If the Applicant failed to deposit the compensation amount within stipulated period, as stated above, the order of stay shall stand vacated without further reference to this Court.

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31(C) IA12390.2024.doc

P.H. Jayani

Mr. Alange, learned Advocate for Respondent Nos.1 to 3 submitted that the Claimants are the husband and minor children of the deceased. The claim was filed in the year 2020 and since then the Claimants are waiting for the compensation.

In view thereof and considering that the Respondent Nos.2 and 3 are minors, Respondent No.1 is permitted to withdraw Rs.10,00,000/- (Rupees Ten Lakhs) along with proportionate interest subject to furnishing usual undertaking that in case the Appellant succeeds in this Appeal, the Respondent No.1 would refund the said amount along with interest as would be directed by this Court. The Tribunal shall invest remaining amount of compensation with nationalized bank giving highest interest from time to time.

PREETI HEERO JAYANI

(SHYAM C. CHANDAK, J.)

Digitally signed by PREETI HEERO JAYANI Date: 2025.05.10 10:44:26 +0530

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