Lh Of Late Dhanjibhai Premjibhai ... vs Tata Aig General Insurance Company Ltd

Citation : 2025 Latest Caselaw 1352 Guj
Judgement Date : 25 July, 2025

Gujarat High Court

Lh Of Late Dhanjibhai Premjibhai ... vs Tata Aig General Insurance Company Ltd on 25 July, 2025

                                                                                                              NEUTRAL CITATION




                             C/SCA/1641/2025                                   ORDER DATED: 25/07/2025

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                                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                     R/SPECIAL CIVIL APPLICATION NO. 1641 of 2025

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                       LH OF LATE DHANJIBHAI PREMJIBHAI LALANI, MAHIPATBHAI DHANJIBHAI
                                                     LALANI
                                                      Versus
                                   TATA AIG GENERAL INSURANCE COMPANY LTD.
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                      Appearance:
                      MR PARESH A. PATEL(5456) for the Petitioner(s) No. 1
                      MR CHIRAYU A MEHTA(3256) for the Respondent(s) No. 1
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                           CORAM:HONOURABLE MS. JUSTICE NISHA M. THAKORE

                                                          Date : 25/07/2025

                                                             ORAL ORDER

1. Heard Mr. Paresh A. Patel, learned advocate on record for the petitioner. Learned advocate Mr. Chirayu Mehta has entered his appearance on behalf of the respondent- Insurance Company.

2. The present petition is filed by the original claimant invoking the supervisory wit jurisdiction of this Court under Article 226 read with Article 227 of the Constitution of India, and has prayed for issuance of appropriate writ of certiorari or any other appropriate writ or direction to quash and set aside the order dated 08.01.2025 passed by the Motor Accident Claims Tribunal (Auxi), Limbdi, District- Surendranagar in MACMA No.4 of 2025 below Exh.1. The prayer is also Page 1 of 5 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Jul 28 2025 Downloaded on : Mon Jul 28 22:01:59 IST 2025 NEUTRAL CITATION C/SCA/1641/2025 ORDER DATED: 25/07/2025 undefined made to seek direction against the Tribunal to disburse the amount of the fixed deposit of an amount of Rs.3,88,153/- in favour of the present petitioner, which is lying with the bank in the name of the petitioner.

3. Learned advocate appearing for the petitioner has submitted that pursuant to the judgment and award passed by the Tribunal, the original claimants, including the petitioner, were held entitled to total amount of compensation to the tune of Rs.41,40,196/- with interest. The Tribunal had apportioned the aforesaid amount to the share of respective petitioners, whereby the present petitioner, being original claimant no.3, was held entitled to 10% of the aforesaid award amount. Further direction was issued by the Tribunal to deposit 70% of the aforesaid amount in a Nationalized Bank for a period of 5 years. The amount of Rs.3,88,153/- was deposited with the Allahabad Bank (which is merged with Indian Bank) on 16.10.2020 for a term period of 5 years.

3.1 Learned advocate has further submitted that the aforesaid fixed deposit is to mature on 16.10.2025. However, the petitioner was required to apply for premature release of the aforesaid amount for construction of his own house on a plot acquired by him in the name of his mother. The application was moved before the Tribunal seeking Page 2 of 5 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Jul 28 2025 Downloaded on : Mon Jul 28 22:01:59 IST 2025 NEUTRAL CITATION C/SCA/1641/2025 ORDER DATED: 25/07/2025 undefined appropriate directions in this regard. However, the Tribunal, vide impugned order dated 08.01.2025, has not entertained such application being MACMA No.4 of 2025, on the erroneous ground that the premature withdrawal of the fixed deposit amount, would not be in the interest of the applicant.

3.2 Learned advocate for the petitioner has further submitted that, in fact, the necessary permission from the Authorities has been sought to construct the house, whereby he has approached the consulting Civil Engineer, who has also proposed the plan for construction, and has also given a rough estimate of the expenses, to be incurred for construction of the house. The aforesaid documents have been placed for consideration on record. He has, therefore, submitted that as against the expenses of the construction estimated to the tune of Rs.7,74,000/-, the petitioner, who is otherwise engaged in a contract- based job and with a limited source of income, would be required to borrow the money, which would charge a higher rate of interest, as against the interest which may be accrued on the amount lying in the fixed deposit. He has, therefore, urged this Court to quash and set aside the order assailed, and to grant the release of the aforesaid fixed deposit amount.





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                                                                                                               NEUTRAL CITATION




                             C/SCA/1641/2025                                   ORDER DATED: 25/07/2025

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4. Learned advocate Mr. Chirayu Mehta appearing for the Insurance Company has requested this Court to pass appropriate orders, in the facts and circumstances of the case.

5. Considering the aforesaid submissions of the learned advocates appearing for the respective parties and having perused the documents placed for consideration in light of the submissions made by the learned advocate for the petitioner, the Tribunal has mainly considered the fact that the fixed deposit amount is likely to get mature in the short period by the month of October-2025. Considering the aforesaid fact, the Tribunal has considered the interest of the claimant, as the premature withdrawal of the amount may lead to loss of interest.

6. Having noted the aforesaid facts, in the opinion of this Court, no error can be found with the approach of the Tribunal in securing the interest of the claimant. However, at the same time, considering the realities, as pointed out by the learned advocate for the petitioner and noticing the fact that the petitioner is engaged in a salaried job on a contract basis, and looking to the fact that the plot has been purchased in the name of his mother and he intends to construct the property over the same, the further examination of the application Page 4 of 5 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Jul 28 2025 Downloaded on : Mon Jul 28 22:01:59 IST 2025 NEUTRAL CITATION C/SCA/1641/2025 ORDER DATED: 25/07/2025 undefined suggest that the petitioner is residing in a rental house. This Court is inclined to exercise its discretion in the facts and circumstances of the case.

7. Hence, the order dated 08.01.2025 passed by the Motor Accident Claims Tribunal (Auxi), Limbdi, District- Surendranagar in MACMA No.4 of 2025 below Exh.1, is hereby quashed and set aside. The prayer of the petitioner to seek premature release of the fixed deposit receipt, is hereby allowed. The Tribunal is directed to permit the petitioner to withdraw the aforesaid amount lying in the fixed deposit receipt.

8. With these observations, the present petition stands disposed of. Direct service, as prayed for, is permitted.

(NISHA M. THAKORE,J) SUYASH SRIVASTAVA Page 5 of 5 Uploaded by SUYASH KUMAR SRIVASTVA(HC01570) on Mon Jul 28 2025 Downloaded on : Mon Jul 28 22:01:59 IST 2025