United India Insurance Co Ltd vs Kamlaben Manojbhai Makwana
2021 Latest Caselaw 10301 Guj

       C/FA/3645/2019                               IA ORDER DATED: 02/08/2021




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
            CIVIL APPLICATION (FOR STAY) NO. 1 of 2019
                 In R/FIRST APPEAL NO. 3645 of 2019
                                With
CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT OF AMOUNT)
                            NO. 1 of 2021
                 In R/FIRST APPEAL NO. 3645 of 2019
==========================================================

UNITED INDIA INSURANCE CO LTD Versus KAMLABEN MANOJBHAI MAKWANA ========================================================== Appearance:

MR GC MAZMUDAR for the PETITIONER(s) No. NISHIT A BHALODI for the RESPONDENT(s) No. RULE SERVED for the RESPONDENT(s) No. ==========================================================

CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA

Date : 02/08/2021

IA ORDER

Order in Civil Application No.1 of 2019 (for Stay)

Learned advocate Mr. G. C. Mazmudar for the applicant insurance company stated that the amount awarded by the Claims Tribunal has been deposited in compliance of order of stay dated 22.8.2019 passed by the court.

In that view, the stay granted as per order dated 22.8.2019 is confirmed on the same terms. The civil application stands allowed. Rule is made absolute.

Order in Civil Application No. 1 of 2021 (for Disbursement)

Heard learned advocates for the respective parties.

2. In this application, the claimant has prayed for disbursement of the

C/FA/3645/2019 IA ORDER DATED: 02/08/2021

amount of compensation deposited by the insurance company.

3. While granting the stay of the impugned judgment and award of the Motor Accident Claims Tribunal, this court put a condition of depositing the awarded amount. Accordingly, the respondent insurance company has deposited the amount with cost and interest with the Tribunal concerned, it was stated before the court.

4. On one hand the amount of compensation awarded by the Claims Tribunal is deposited by the insurance company, and on the other hand, the appeal of the insurance company is pending and would take time before it is finally decided. In that view, if part of the deposited amount is disbursed in favour of the claimant in the interregnum to his benefit, the same shall serve the ends of justice. Therefore, the following directions are issued,

(i) Out of the total deposited amount by the appellant insurance company, the Tribunal shall disburse 30% of the amount in favour of the claimant after verifying her identity, following necessary procedure and by issuing account payee cheque in her name.

(ii) The remainder 70% amount shall be deposited with the nationalised bank in a fixed deposit of cumulative nature.

(iii) The Fixed Deposit shall be created initially for a period of one year and renewable subject to further orders.

(iv) The claimant shall not be entitled to earn periodical interest which may accrue on the invested amount.

C/FA/3645/2019 IA ORDER DATED: 02/08/2021

(v) The Fixed Deposit receipts shall remain in the custody of the Nazir of the Claims Tribunal and the same shall not be permitted to be utilised to raise any loan or finance or for any other such purpose without permission of the court.

5. The present application stands allowed and disposed of in the aforesaid terms.

(N.V.ANJARIA, J) C.M. JOSHI