The Oriental Insurance Company ... vs Premi
2021 Latest Caselaw 11669 Raj

(1 of 3) [CMA-1409/2019]

HIGH COURT OF JUDICATURE FOR RAJASTHAN JODHPUR

S.B. Civil Misc. Appeal No. 1409/2019

The Oriental Insurance Company Limited

----Appellant Versus Premi & Ors.

                                                                ----Respondent


For Appellant(s)         :     Mr. Jagdish Vyas.
For Respondent(s)        :     Mr. Sandeep Saruparia.
                               Mr. N.K. Joshi.



           HON'BLE MR. JUSTICE ARUN BHANSALI

                                    Order

27/07/2021

An application has been filed by the respondents-claimants

under Section 151 CPC seeking a direction to the Tribunal to make

payment of the amount deposited by the Insurance Company.

It is, inter alia, indicated that the Tribunal passed an award

for a sum of Rs.56,27,500/- alongwith interest @ 8.5% per annum

against the non-claimants including appellant-Oriental Insurance

Company Ltd. and New India Assurance Company Ltd., the

Insurance Companies of the two vehicles involved in the accident.

The present appeal was filed by appellant-Oriental Insurance

Company Ltd., wherein by order dated 30.05.2019, it was directed

by a coordinate Bench of this Court that recovery pursuant to the

impugned judgment and award dated 12.02.2019 from the

appellant-Insurance Company shall remain stayed subject to

condition that the appellant deposits a sum of Rs. 40,00,000/-

within a period of four weeks. However, it was made clear by the

Court that direction to deposit Rs. 40,00,000/- shall not be treated

(2 of 3) [CMA-1409/2019]

to be a direction to deposit such sum by the Insurance Company

and that the internal arrangement and practice being adopted by

the Insurance Company shall be adhered to their internal

arrangement.

The appellant-Insurance Company deposited a sum of

Rs.20,25,000/- over and above the amount already deposited

and the New India Assurance Company Ltd. deposited a sum of

Rs. 32,33,629/- i.e. 50% of the award alongwith interest. No

appeal was filed by the New India Assurance Company.

However, the Tribunal, while disbursing the amount as

deposited by both the Insurance Company, based on the interim

order granted by the Court, confined the disbursal of the amount

to Rs. 40,00,000/- i.e. out of a sum of Rs. 52,58,629/-, deposited

by both the Insurance Companies, a sum of Rs. 39,75,000/- was

ordered to be paid after deducting amount already paid and a sum

of Rs. 12,83,629/- was ordered to be retained by the Tribunal.

Learned counsel for the claimants submits that retaining of a

sum of Rs. 12,83,629/- by the Tribunal is not justified, inasmuch

as, the New India Assurance Company Ltd. has not filed any

appeal and has deposited its share of liability alongwith interest,

which amount could not have been retained by the Tribunal and

the amount, which has been deposited by the appellant-Insurance

Company pursuant to the interim order granted by the Court, was

also to be paid to the respondents-claimants.

Learned counsel for the appellant-Insurance Company made

submissions that the appellant has deposited its share in terms of

the interim order.

In view of the above fact situation, wherein the Insurance

Company which has not filed appeal, has deposited its share of

(3 of 3) [CMA-1409/2019]

liability alongwith interest and the appellant-Insurance Company

had also deposited the amount in terms of the interim order

granted by the Court, there was no occasion for the Tribunal to

then retain the amount based on the interim order granted by this

Court as the said interim order could only be confined to the

appellant before this Court and not to the parties, who had not

challenged the award at all.

In view of the above discussion, the application filed by the

respondents-claimants is allowed. The Tribunal is directed to make

payment of the balance amount of Rs. 12,83,629/- to the

respondents-claimants in terms of the award.

(ARUN BHANSALI),J

75-PKS/-

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