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The Oriental Insurance Company Ltd vs Kajal & Ors

Supreme Court11 November 2008Aftab Alam · Tarun Chatterjee

Ratio decidendi

The rule this decision rests on

Where an insurance company appeals an interim order of a High Court directing deposit of an awarded amount with a claims tribunal for withdrawal by claimant respondents, the appellate court may modify such order to require that claimant respondents furnish security for the entire awarded amount to the satisfaction of the claims tribunal as a condition precedent to withdrawal of those funds.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1
NONREPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.6621 OF 2008(Arising out of SLP) No.6919 of 2006)
The Oriental Insurance Company Ltd. ..Appellant
Versus
Kajal & Ors. ..Respondents(With C.A.No.6622/2008 @ SLP) No.7653/2006 andC.A.No.6623/2008 @ SLP)No.7654/2006)
ORDER
1. Leave granted.

2. These appeals are directed against interim orders

dated 16th of February, 2006 in FAFO Nos.397 of

2006 and 396 of 2006 and dated 25th of January,

2006 in FAFO No.178 of 2006 by which a Division

Bench of the High Court of Judicature at

Allahabad had passed the following order :- 2

C.A.No.6621/2008 @ S.L.P.)No.6919/2006 & C.A.No.6622/2008 @ S.L.P. ) No.7653 of 2006 -

"The entire amount awarded by the claim tribunal be deposited with the claim tribunal within two months and the same may be withdrawn by the claimant respondents. The statutory deposit made before this court be remitted to the claim tribunal within a period of three weeks and the same may be taken into account."

C.A.No.6623/2008 @ S.L.P.)No.7654 of 2006 -

"Until further orders of this court, execution shall remain stayed, provided the appellant deposits entire awarded amount with the tribunal within three months from today, out of which an amount of Rs.1,50,000/ shall be given to the claimant respondents without any security and the balance amount be deposited by the Tribunal in any Nationalised Bank in an interest bearing account.

The statutory deposit made before this court be remitted to the Tribunal within three weeks from today, which shall be adjusted towards the deposit to be made by the appellant."

3 3.Having heard the learned counsel for the parties and

considered the impugned orders, we are of the view that

the impugned orders may be modified only to the extent

that the claimant respondents would only be entitled to

withdraw the amount awarded by the claim tribunal if the

claimant respondents furnish a security for the entire

amount to the satisfaction of the claim tribunal.

4.With the above modifications, the appeals are disposed of.

There will be no order as to costs.

...........................J. [Tarun Chatterjee]

New Delhi; .................. .........J. November 11, 2008. [Aftab Alam]

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