Case Note & Summary
The New India Assurance Co. Ltd. filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging an award of the Motor Accident Claims Tribunal. The claimants, being the legal representatives of the deceased Sanjay Nikam, filed an interim application seeking permission to withdraw 50% of the awarded compensation amount without furnishing security, and also sought a direction to the insurance company to deposit the balance amount. The court considered the submissions of both parties. The claimants argued that they were in need of funds and that the insurance company had already deposited a portion of the amount. The insurance company opposed the withdrawal, contending that the appeal had good chances of success. The court, after hearing both sides, allowed the claimants to withdraw 50% of the awarded amount on the condition that they file an undertaking to repay the amount with interest if the appeal is allowed. The court also directed the insurance company to deposit the balance amount within four weeks. The court held that the balance of convenience lies in permitting partial withdrawal to meet the needs of the claimants, while protecting the interests of the insurance company.
Headnote
A) Motor Accident Claims - Withdrawal of Compensation - Section 173 Motor Vehicles Act, 1988 - Order XLI Rule 5 CPC - Claimants sought withdrawal of 50% of the awarded amount without security - The court allowed withdrawal of 50% on condition that the claimants file an undertaking to repay if the appeal succeeds, and directed the insurance company to deposit the balance amount within four weeks - Held that the balance of convenience lies in permitting partial withdrawal to meet the needs of the claimants, while protecting the interests of the insurance company (Paras 1-6).
Issue of Consideration
Whether the claimants should be permitted to withdraw the compensation amount awarded by the Motor Accident Claims Tribunal pending appeal by the insurance company, and whether the insurance company should be directed to deposit the balance amount.
Final Decision
Interim Application No.765 of 2021 is allowed. Claimants are permitted to withdraw 50% of the awarded amount on condition of filing an undertaking to repay with interest if appeal succeeds. Insurance company is directed to deposit the balance amount within four weeks.
Law Points
- Withdrawal of compensation
- Motor Accident Claims
- Section 173 Motor Vehicles Act
- 1988
- Order XLI Rule 5 CPC
- security requirement
- balance of convenience
