Gujarat High Court
New India Assurance Co Ltd vs Mandabhai Lakhabhai Rabari on 3 August, 2021
Bench: N.V.Anjaria
C/FA/1351/2021 IA ORDER DATED: 03/08/2021
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
CIVIL APPLICATION (FOR STAY) NO. 1 of 2020
In R/FIRST APPEAL NO. 1351 of 2021
With
CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT OF AMOUNT)
NO. 1 of 2021
In R/FIRST APPEAL NO. 1351 of 2021
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NEW INDIA ASSURANCE CO LTD
Versus
MANDABHAI LAKHABHAI RABARI
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Appearance:
for the PETITIONER(s) No.
MR MAULIK J SHELAT for the PETITIONER(s) No.
MR. HEMAL SHAH for the RESPONDENT(s) No.
RULE SERVED for the RESPONDENT(s) No.
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CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA
Date : 03/08/2021
IA ORDER
Order in Civil Application No.1 of 2020 (for Stay)
Learned advocate Mr. Maulik Shelat for the applicant insurance
company stated that the amount awarded by the Claims Tribunal has been
deposited in compliance of order of stay dated 7.6.2021 passed by the
court.
In that view, the stay granted as per order dated 7.6.2021 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.
C/FA/1351/2021 IA ORDER DATED: 03/08/2021
2. In this application, the claimant has prayed for disbursement of the
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 his identity, following necessary
procedure and by issuing account payee cheque in his name.
(ii) The remainder 70% amount shall be deposited with the
nationalised bank in a fixed deposit of non-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 be entitled to earn periodical interest
C/FA/1351/2021 IA ORDER DATED: 03/08/2021
which may accrue on the invested amount.
(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
