Bombay High Court
Usha Ratnakar Nagargoje And Ors vs Shriram General Insurance Co. ... on 11 January, 2021
Bench: V.L. Achliya
(1) ca3153.20
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
9 CIVIL APPLICATION NO.3153 OF 2020
IN FA/3850/2019
USHA RATNAKAR NAGARGOJE AND ORS
VERSUS
SHRIRAM GENERAL INSURANCE CO. LTD., THR ITS DIV.
MANAGER AND ORS
Mr. Kedar Balbhim R., Advocate for the applicants
Mr. S. G. Chapalgaonkar, Advocate for respondent No.1
CORAM : V. L. ACHLIYA, J.
DATE : 11-01-2021
P. C.
. The applicants have moved this application seeking
withdrawal of amount deposited by the appellant insurance
company.
2. Heard learned counsel for the applicants/claimants and
the learned counsel representing the respondents.
3. Mr. Chapalgaonkar, learned counsel for the appellant
submits that the appellant has good case to succeed in the appeal.
It is submitted that that the accident occurred on 30-07-2012. On
the date of accident, there was no valid insurance policy in force.
The insurance policy obtained by the finance company on behalf of
insured was cancelled before the commencement of insurance
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policy in view of repayment of loan by the owner/insured. It is
submitted that the policy in question was cancelled w.e.f. 18-11-
2011. The insurance company has taken a specific stand that there
was no valid insurance covering the date of accident in force on the
date of accident. In support of plea taken by the appellant
insurance company, the appellant insurance company has examined
witness and also produced the entire record proving the
cancellation of policy including the refund of payment received from
the financier by insurance company. It is submitted that in case, the
applicants are permitted to withdraw the amount it will be difficult
to recover the amount. In the background of facts of the case and
the challenge raised in the appeal, the learned counsel submits that
the application seeking withdrawal of amount be decided alongwith
appeal.
4. Mr. Kedar, learned counsel for the applicants/claimants
submits that the appeal is devoid of merit. By referring to judgment
and order passed by the tribunal, the learned counsel submits that
the tribunal has dealt the issue in minute detail and categorically
recorded the findings that the insurance company has failed to
prove that there was no valid insurance on the date of accident and
policy was cancelled. It is further submitted the documents
produced in that behalf by the appellant found to be doubtful. It is
submitted that the applicants be allowed to withdraw the amount
on furnishing appropriate undertaking.
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5. On due consideration of the submissions advanced and
the challenges raised in the appeal, I am of the view that the order
in following terms would meet ends of justice. Hence, the following
order:
ORDER
i. The application is allowed.
ii. The applicants are permitted to withdraw the
amount to the extent of Rs.10,00,000/- [Rupees Ten
Lakhs] out of amount of Rs.83,50,609/- deposited by
the insurance company. Out of Rs. 10,00,000/- [Rupees
Ten Lakhs], the amount of Rs. 5,00,000/- [Rupees Five
Lakhs] be paid to the applicant No. 1-Usha Ratnakar
Nagargoje and the balance amount of Rs. 5,00,000/- be
paid to applicant Nos. 5-Baburao Madhavrao Nagargoje
and 6-Pramila Baburao Nagargoje in equal proportion
on each of them furnishing undertaking to the effect
that in the event the award is set aside or modified the
applicants shall re-deposit the amount within eight
weeks from the date of passing of such order.
iii. After making the payment of Rs. 10,00,000/-
[Rupees Ten Lakhs] to the applicant Nos. 1, 5 and 6,
the balance amount together with interest accrued if
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any, over the amount deposited, be invested in fixed
deposit in any nationalized bank initially for a period of
two years with standing instructions to renew fixed
deposit till further orders from this court.
iv. The interest accrued over the amount invested in
fixed deposit be paid to the applicant No.1 after every
three months till further orders from this court on
furnishing undertaking to that in the event the award is
set aside or modified the applicants shall re-deposit the
amount received towards interest within eight weeks
from the date of passing of order by this court and
amount received shall be utilized for maintenance of
herself and maintenance of applicant Nos. 2 to 6.
v. Undertaking to be filed to remain in operation till
disposal of appeal.
vi. Civil application is disposed of.
[ V. L. ACHLIYA, J. ]
VishalK/ca3153.20
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