United India Insurance Co.Ltd vs Manusinh Chelaji Vaghela
2021 Latest Caselaw 12430 Guj

       C/FA/5096/2019                                  IA ORDER DATED: 25/08/2021




              IN THE HIGH COURT OF GUJARAT AT AHMEDABAD


CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT OF AMOUNT)
                           NO. 1 of 2021
                In R/FIRST APPEAL NO. 5096 of 2019
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MANUSINH CHELAJI VAGHELA Versus CHETNABEN PRADIPBHAI VAIDH ========================================================== Appearance:

KAASH K THAKKAR for the PETITIONER(s) No. for the RESPONDENT(s) No. MR PALAK H THAKKAR for the RESPONDENT(s) No. ==========================================================

CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA

Date : 25/08/2021

IA ORDER

Heard learned advocates for the respective parties.

2. In this application, the claimants have prayed for disbursement of the 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 about dependency. The said is one of the main aspects of merit in the appeal preferred by the insurance company.

4. On one hand, final hearing of the appeal would take time and on

C/FA/5096/2019 IA ORDER DATED: 25/08/2021

the other hand the amount of compensation as awarded by the Tribunal has been deposited by the insurance company, claimants should not be deprived of benefits of compensation in the meantime, therefore, partial disbursement would sub serve the ends of justice.

5. Therefore, the following directions are issued.

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

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

(iii) The fixed deposit shall be created initially for a period of three years and renewable subject to further orders;

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

(v) The fixed deposit receipt shall remain in the custody of the Nazir of the Claims Tribunal and the same shall not be permitted to be utilised for any purpose including raising of loan or finance or for any other such purpose without permission of this Court.

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

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