Shakanbhai Bijiyabhai Mandod vs National Insurance Co. Ltd
2023 Latest Caselaw 2491 Guj

     C/SCA/19649/2022                                    ORDER DATED: 24/03/2023




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 19649 of 2022

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                        SHAKANBHAI BIJIYABHAI MANDOD
                                    Versus
                         NATIONAL INSURANCE CO. LTD.
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Appearance:
MR NISHIT A BHALODI(9597) for the Petitioner(s) No. 1,2
for the Respondent(s) No. 1
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 CORAM:HONOURABLE MS. JUSTICE GITA GOPI

                                 Date : 24/03/2023

                                  ORAL ORDER

1. The claimants are before this Court

challenging the order dated 13.7.2021 passed

below Exh.9 in MACMA no.57 of 2020, where

the prayer came to be rejected, wherein it

was urged that the compensation amount be

put in fixed deposit in Baroda Gujarat

Gramin Bank.

2. Mr. Bhalodi, learned advocate for the

applicants submits that the applicants are

holding a savings account in Baroda Gujarat

Gramin Bank and therefore, they had made a

C/SCA/19649/2022 ORDER DATED: 24/03/2023

prayer to pass necessary order of putting

the amount in the fixed deposit at the Bank,

where the claimants hold their savings

account. Mr. Bhalodi submits that the

learned Tribunal, while passing the judgment

and award, had made a direction to place the

amount in a nationalized Bank. Mr. Bhalodi

states that the applicants - claimants are

from the tribal area and they would have

their savings account in the Banks which

would be convenient for their banking

transaction as well as from the place of

residence.

3. Mr. Bhalodi further stated that Baroda

Gujarat Gramin Bank is at par with the

nationalized Bank and there is nothing on

record or in public domain to suggest that

there would be any risk of putting the

amount in the said Bank and a communication

was addressed by the Regional Manager of

C/SCA/19649/2022 ORDER DATED: 24/03/2023

Baroda Gujarat Gramin Bank on 24.9.2019 to

the learned Principal District Judge with

the subject of classification of Baroda

Gujarat Gramin Bank. In the said letter, it

is stated that all the Regional Rural Banks

are listed in the 2nd schedule and are

classified as "Scheduled Banks" under

Section 42 and 2(e) of RBI Act, 1934 as they

were established under the Regional Rural

Bank Act, 1976. Mr. Bhalodi, thus, stated

that as per the communication, Baroda

Gujarat Gramin Bank is owned by Government

of India, Government of Gujarat and Bank of

Baroda in the ratio of 50:15:35 and 65% of

Baroda Gujarat Gramin Bank is directly owned

by Central and State Government and thus,

stated that the rejection of the application

would be an infringement of the personal

right of the applicants and is inconsistent

with the general practice of the Court. The

C/SCA/19649/2022 ORDER DATED: 24/03/2023

learned Tribunal had passed the order of

depositing the money in the nationalized

Bank as per the application in many of the

MACP matters, the amount was deposited in

Baroda Gujarat Gramin Bank and by mere

observation of non-compliance, without any

evidence on record, the learned Tribunal, on

its own, has made certain observations

against the Bank while the communication of

the Bank to the learned Principal District

Judge shows the holding of the Government of

Gujarat as well as Central Government and

Baroda Gujarat Gramin Bank. Further, the

communication from the Ministry of Finance,

Government of India, Department of Financial

Services, New Delhi dated 8.5.2014 shows

that the Regional Rural Banks established

under the provisions of the RRBs Act, 1976

is with the objective of an alternatvie

channel to cooperative credit structure

C/SCA/19649/2022 ORDER DATED: 24/03/2023

which has played a crucial role in meeting

the credit needs of the rural areas and

implementation of Financial Inclusion Scheme

of the Government of India. The applicants

from rural area would certainly prefer their

money to be invested in the Banks which is

owned with the object of developing the

cooperative credit structure and therefore,

the learned Tribunal ought to have granted

the application. The observation so made

with regard to the Bank could not be

conducive even to the Bank concerned since

nothing has been brought on record by way of

report of any of the Government authority of

any non-compliance of the rules and

regulations. Thus, for the reasons noted

hereinabove, the order dated 13.7.2021

passed below Exh.9 in MACMA no.57 of 2020 is

quashed and set aside. Let the amount be

placed in Baroda Gujarat Gramin Bank, where

C/SCA/19649/2022 ORDER DATED: 24/03/2023

the claimants hold their savings account.

4. Accordingly, the present petition stands

disposed of. Direct service is permitted.

(GITA GOPI,J) Maulik