New India Assurance Co. Ltd. Vs Mohinder Verma S/o Sh. Balak Ram — Himachal Pradesh HC (2025) — LawSathi Research

New India Assurance Co. Ltd. Vs Mohinder Verma S/o Sh. Balak Ram — Himachal Pradesh HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Partial interim release of 50% of the awarded compensation (lying deposited in the Registry) in favour of applicant/respondent No.1, remitted to his bank account after proper verification and identification, subject to refund with interest @ 6% per annum if the appeal is allowed; the application was disposed of accordingly.

Issue for consideration

Whether at least 50% of the awarded compensation, alongwith up-to-date interest, should be released from the amount lying deposited in the Registry of this Court in favour of applicant/respondent No.1, pending final outcome of the appeal, on his plea of ill health.

Court's answer

The Court found it in the interest of justice to release 50% of the awarded amount of compensation in favour of applicant/respondent No.1, which is lying deposited in the Registry of this Court, after proper verification and identification by remitting the same to his bank account (details given in para-5 of the application).

Ratio / Principle

The release is made subject to the final outcome of the appeal; if the appeal is allowed, applicant/respondent No.1 must refund the amount so released with interest at 6% per annum.

Detailed headnote1 paragraphs

Interim release of awarded motor accident compensation pending appeal — application under Section 151 CPC by claimant-side applicant/respondent No.1 on the ground of ill health and need of funds for treatment and daily expenses, supported by affidavit — Insurance Company/appellant objected that recovery would be difficult if the appeal succeeded — Held: release of 50% of the awarded amount lying deposited in the Registry of this Court in favour of applicant/respondent No.1, after proper verification and identification, by remittance to his bank account disclosed in para-5 of the application — release made expressly subject to the final outcome of the appeal, with liability to refund the amount so released together with interest @ 6% per annum if the appeal is allowed — application disposed of (Sushil Kukreja, J., November 03, 2025, in FAO (MVA) No. 347 of 2024, CMP No.23358 of 2025).

NIAC Ltd. Vs. Mohinder Verma & Ors.

FAO (MVA) No. 347 of 2024

03.11.2025 Present: Mr. B.M.Chauhan, Senior Advocate with Ms.Kamakshi Tarlokta & Mr. Amit Himalvi, Advocates, for the appellant.

Ms. Monika Singh, Advocate, for respondent No.1.

Ms. Reeta Thakur, Advocate, for respondent No.2. Mr. Virender Sharma, Advocate, for respondents No.3 to 7.

CMP No.23358 of 2025

The instant application under Section 151 of CPC has been filed on behalf of applicant/respondent No.1-Mohinder Verma, for release of the awarded amount, lying deposited in the Registry of this Court.

As per the applicant, he is not having good health and requires the money for his treatment and also to meet out his day-to-day expenses. Therefore, it is prayed that at least 50% of the awarded amount of compensation alongwith up-todate interest, be released in his favour. The application is duly supported with the affidavit of the applicant.

In the reply filed by the non-applicant/appellant, the prayer made in the application has been opposed on the ground that in the event of appeal being allowed, it would be difficult for the Insurance Company to recover the amount, so released.

Heard. Having perused the averments made in the application, which is duly supported with the affidavit of the applicant/respondent No.1, this Court finds it in the interest of

justice to release 50%, out of the awarded amount of compensation, in favour of applicant/respondent No.1, which is lying deposited in the Registry of this Court, after proper verification and identification by remitting the same to his bank account, details whereof have been given in para-5 of the application.

It is made clear that release of the awarded amount shall be subject to final outcome of the appeal and in the event of appeal being allowed, applicant/respondent No.1 will have to refund the amount, so released, with interest @ 6% per annum.

The application stands disposed of.

( Sushil Kukreja ) Judge

November 03, 2025

(V.Himalvi)