Champa Omprakash Sharma and Ors. vs the New India Assurance Co. Ltd. — Bombay HC (2025) — LawSathi Research

Champa Omprakash Sharma and Ors. vs the New India Assurance Co. Ltd. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Claimants permitted to withdraw only the principal amount of Rs.5,98,680/- from the deposit with the concerned Commissioner, subject to an undertaking to bring back the money with interest as directed at the hearing of the appeal and subject to the final outcome of the First Appeal; the balance re-invested in a nationalised bank initially for one year; Interim Application disposed of in those terms.

Issue for consideration

Whether the Respondents/Claimants (widow and children of the deceased) should be permitted to withdraw, during pendency of First Appeal No. 1063 of 2025, the amount deposited by the Appellant/Insurance Company. +1 more

Court's answer

Having regard to the nature of the death claim and the claimants being a widow in her fifties and sons of growing age of early twenties, the Interim Application is partly allowed.

Ratio / Principle

For the time being, the Applicants are permitted to withdraw only the principal amount of Rs.5,98,680/- from the amount deposited in the office of the concerned Commissioner in connection with this claim.

Key takeaways

The rest of the deposited amount is to be re-invested in a nationalised bank, initially for a period of 1 year and thereafter as per prevailing practice.ratio¶22
The withdrawal is conditional upon an undertaking by the Claimants to bring back the money along with interest, as may be directed by the Court at the time of hearing of the appeal, and remains subject to the final outcome of the First Appeal.ratio¶23

Detailed headnote1 paragraphs

Bombay High Court (M. M. Sathaye, J.) — Interim Application No. 7083 of 2025 in First Appeal No. 1063 of 2025 — The New India Assurance Co. Ltd. v. Champa Omprakash Sharma & Ors. — Death claim; Application by claimants (widow in her fifties and sons of early twenties) for withdrawal of compensation deposited by the insurer with the Commissioner, pending appeal — Insurer opposed, contending the claim was filed after 8 years and delay seriously contested — Held, IA partly allowed: claimants permitted to withdraw only the principal amount of Rs.5,98,680/-; balance re-invested in a nationalised bank initially for one year and thereafter as per prevailing practice; withdrawal subject to an undertaking that claimants will bring back the money with interest as directed at the hearing of the appeal and subject to the final outcome of the First Appeal; IA disposed of accordingly.

24.IA.7083.2025..doc

Digitally signed by ANANT ANANT KRISHNA KRISHNA NAIK NAIK Date:

Date: 2025.07.08 12:50:23 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

INTERIM APPLICATION NO. 7083 OF 2025

IN

FIRST APPEAL NO.1063 OF 2025

Champa Omprakash Sharma & Ors. ...Applicants IN THE MATTER BETWEEN The New India Assurance Co. Ltd. ...Appellant Versus Champa Omprakash Sharma & Ors. ...Respondents

Ms Nidhi Shah i/b. Mr. Jitendra Gor for the Applicants Mr. Himanshu Takke i/b. Mr. Milind V. More for the Insurance Company

****

CORAM : M. M. SATHAYE, J. DATED : 7^th JULY, 2025

P.C.:

The appeal has been admitted today by a separate order.

This is an Application by the Respondent/Claimants for withdrawal of the amount deposited by the Appellant/Insurance Company. No reply is filed opposing the Interim Application.

It is a death claim and the claimants are widow and children of the deceased. It is contended that due to sudden deprivation of income, the claimants - family of the deceased, are in need of financial support. That substantial amounts are already spent on the hospitalization. It is claimed that the Applicants are required to take financial help from the friends and family.

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24.IA.7083.2025..doc

Learned Counsel for the Respondent-Insurance Company contends that in a belated claim, interest is granted from the date of accident till the realization and claim of delay is seriously contested. He submits that when claim itself is filed after 8 years, financial difficulty can not be believed.

Considering the nature of claim and that claimants are widow in her fifties and sons of growing age of early twenties, Interim Application is partly allowed.

For the time being, the Applicants are permitted to withdraw only the principal amount of Rs.5,98,680/- from the amount deposited in the office of the concerned Commissioner in connection with this claim. Rest of the amount will be re-invested in a nationalised bank, initially for a period of 1 year and thereafter as per prevailing practice.

It is clarified that the amount will be permitted to be withdrawn subject to an undertaking that the Claimants will bring back the money alongwith interest, as may be directed by the Court at the time of hearing of appeal and the withdrawal will be subject to final outcome of the First Appeal.

The Interim Application is disposed of in above terms.

All concerned to act on duly authenticated or digitally signed copy of this order.

(M. M. SATHAYE, J.)

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