Case Note & Summary
The present matter involves two civil applications arising out of First Appeal No.631 of 2012 filed under Section 173 of the Motor Vehicles Act, 1988 against an award dated 18th July 2011 passed by the Motor Accidents Claims Tribunal (MACT) at Thane in favour of the claimant, Nitin Popat Nalawade. The insurer, United India Insurance Co. Ltd., had filed Civil Application No.656 of 2012 seeking stay of execution of the award, and this court on 18th April 2012 granted an ex-parte ad-interim stay in terms of prayer (b) of that application, staying the execution and implementation of the impugned award. Subsequently, the claimant filed Civil Application No.1424 of 2014 seeking modification of that ad-interim order to allow him to withdraw the amount deposited by the insurer or to direct the insurer to deposit the awarded amount. The insurer opposed the modification, arguing that under Order 41 Rule 3 of the Code of Civil Procedure, 1908 (CPC), the appellate court has discretion to grant stay without imposing a condition of deposit. The insurer relied on the Supreme Court judgment in Malwa Strips Pvt. Ltd. vs. Jyoti Ltd. (2009) 2 SCC 426, particularly paragraphs 11 and 12, which discuss the court's discretion under Order 41 Rule 3 CPC. The court considered the submissions and held that while the appellate court has discretion, it can impose conditions such as deposit of the decretal amount or furnishing security while granting stay. The court noted that the ad-interim stay was granted ex-parte and that the claimant should not be deprived of the fruits of the award during the pendency of the appeal. Accordingly, the court modified the ad-interim order dated 18th April 2012 and directed the insurer to deposit 50% of the awarded amount within four weeks. Upon such deposit, the claimant was permitted to withdraw the said amount on furnishing security to the satisfaction of the MACT. The court also directed that the First Appeal be expedited. The applications were disposed of accordingly.
Headnote
A) Civil Procedure - Stay of Execution - Order 41 Rule 3 CPC - Appellate Court's Discretion - The appellate court has discretion under Order 41 Rule 3 CPC to impose conditions such as deposit of decretal amount or furnishing security while granting stay of execution of a money decree. The court may modify an ex-parte ad-interim stay order to balance the interests of the decree-holder and the judgment-debtor. (Paras 2-4) B) Motor Vehicles Act - Compensation - Withdrawal of Deposited Amount - Section 173 of the Motor Vehicles Act, 1988 - In an appeal against an award of the Motor Accidents Claims Tribunal, the appellate court may direct the insurer to deposit a portion of the awarded amount and permit the claimant to withdraw the same, subject to furnishing security, to ensure that the claimant is not deprived of the fruits of the decree during the pendency of the appeal. (Paras 3-4)
Issue of Consideration
Whether the ad-interim stay granted ex-parte in favour of the insurer should be modified to allow the claimant to withdraw part of the awarded amount, and whether the appellate court can impose a condition of deposit while granting stay under Order 41 Rule 3 CPC.
Final Decision
The court modified the ad-interim order dated 18th April 2012 and directed the insurer to deposit 50% of the awarded amount within four weeks. Upon such deposit, the claimant was permitted to withdraw the said amount on furnishing security to the satisfaction of the MACT. The First Appeal was directed to be expedited. Both civil applications were disposed of.
Law Points
- Order 41 Rule 3 CPC
- discretion of appellate court to impose deposit condition while granting stay
- power to modify ex-parte ad-interim stay order
