Bombay HC allows withdrawal of a part of compensation amount from insurance company on Company’s failure to file reply

Bombay High Court: A Single Judge Bench comprising of NM Jamdar, J. heard a miscellaneous civil application whereby the applicants had requested to grant them the permission to withdraw an amount of Rs. 3,00,000/- so that it may be utilized for medical expenses that they had incurred. The applicants had filed a claim petition in the Motor Accidents Claims Tribunal, Panaji, for compensation on the death of their daughter in a motor vehicle accident.

The Tribunal had held the respondents liable to pay an amount of Rs. 10,25,000/- along with 6% interest per annum which was challenged and Insurance Company was asked to deposit the entire amount. The grievance of the insurance company pertains to the applicability of the multiplier, while the applicants contended that they since they were entitled to compensation.

The Court allowed the withdrawal of the said amount since the respondent company did not file any reply despite being served a notice. [Datta Vishwanath Kavlekar v. New India Assurance Company, 2017 SCC OnLine Bom 9446, dated 21-12-2017]

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