Gujarat High Court
National Insurance Company Ltd vs Manharbhai Natubhai Thakor on 24 August, 2021
Bench: N.V.Anjaria
C/FA/2816/2019 IA ORDER DATED: 24/08/2021
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
CIVIL APPLICATION (FOR STAY) NO. 1 of 2019
In R/FIRST APPEAL NO. 2816 of 2019
With
CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT OF AMOUNT)
NO. 1 of 2021
In R/FIRST APPEAL NO. 2816 of 2019
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NATIONAL INSURANCE COMPANY LTD
Versus
MANHARBHAI NATUBHAI THAKOR
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Appearance:
MR VIBHUTI NANAVATI for the PETITIONER(s) No.
MR MOHSIN M HAKIM for the RESPONDENT(s) No.
RULE SERVED for the RESPONDENT(s) No.
UNSERVED EXPIRED (R) for the RESPONDENT(s) No.
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CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA
Date : 24/08/2021
IA ORDER
ORDER IN CIVIL APPLICATION FOR STAY
Learned advocate Mr. Vibhuti Nanavati for the applicant insurance
company stated that the amount awarded by the Claims Tribunal has been
deposited in compliance of the order passed by the Court.
In that view, the stay granted as per order dated 11.7.2019 is
confirmed on the same terms. The civil application stands allowed. Rule
is made absolute.
ORDER IN CIVIL APPLICATION FOR DISBURSEMENT
Heard learned advocates for the respective parties.
2. In this application, the claimant has prayed for disbursement of the
C/FA/2816/2019 IA ORDER DATED: 24/08/2021
amount of compensation deposited by the insurance company.
2.1 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 costs and interest with the
Tribunal concerned, it was stated before the court.
3. The issue involved in the main appeal is that the deceased wan an
unauthorised passenger in the vehicle involved in the accident in
question. The said are main aspects of merit in the appeal preferred by
the insurance company.
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/2816/2019 IA ORDER DATED: 24/08/2021
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
