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CA/2798/2007 3/ 3 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
CIVIL
APPLICATION - FOR STAY No. 2798 of 2007
In
FIRST
APPEAL No. 1017 of 2007
=========================================================
UNITED
INDIA INSURANCE COMPANYLIMITED, - Petitioner(s)
Versus
SMT.
SHANTABEN BACHUBHAI GHODASARA & 3 - Respondent(s)
=========================================================
Appearance :
MR
BC DAVE for Petitioner(s) : 1,
MR HARSHAD K
PATEL for Respondent(s) : 1,
None for Respondent(s) : 2 -
6.
=========================================================
CORAM
:
HONOURABLE
MR.JUSTICE JAYANT PATEL
Date
: 13/07/2007
ORAL
ORDER
Rule.
Mr. Patel appears for the orig. claimant and waives notice of rule.
The presence of other parties to the proceedings may not be
required at this stage.
The
present application is for interim injunction pending the First
Appeal which is admitted.
As
per the well settled principles of law, the interim injunction can
be granted on the condition to deposit the entire awarded amount.
Mr.Dave,
learned counsel appearing for the applicant states that pursuant to
the order passed by this Court dated 28.11.2006 in Civil Application
No.7543 of 2006, interim injunction was granted on the condition to
deposit amount of Rs.3,00,000/- with the proportionate interest and
cost and the said amount has been deposited. He further submits
that on the aspects of remaining amount, the applicant shall abide
by the order of this Court.
Hence,
by ad interim order, it is directed that there shall be stay against
the execution and implementation of the award on the condition that
the applicant deposits the entire awarded amount together with the
proportionate interest and cost with the Tribunal including the
amount already deposited and the remaining amount shall be deposited
within a period of four weeks from today.
I
have also heard the the learned counsel for the applicant as well as
for the claimant on the aspects of withdrawal and investment.
In
view of the declaration made in the First Appeal, as there is
admitted liability of Rs.2,82,000/-, the award can be allowed to
operate inspite of the pendency of this appeal. However, it appears
that the Tribunal has permitted disbursement on a very higher side
of 50% and therefore, considering the facts and circumstances, out
of the admitted liability of Rs.2,82,000/- together with the
proportionate interest and cost, the Tribunal shall permit
disbursement of 20% of the amount and shall invest 80% of the amount
with the nationalised bank for a period of 5 years with the
condition that the claimant shall not be entitled to raise any loan
over such investment, but shall be entitled to interest
periodically, as and when it becomes dues and the aforesaid
investment shall be outside the scope of the appeal.
So
far as the remaining amount of liability under challenge together
with the interest and cost is concerned, considering the facts and
circumstances, the same shall be invested by the Tribunal with the
condition of cumulative interest and the investment shall be for the
period of 5 years with the further clause of renewal in the event,
the appeal is not finalised before the due date.
Since
by ex parte order dated 28.11.2006 in Civil Application No.7543/06,
the disbursement permitted was 90%, investment must have already
been made by the Tribunal. Therefore, with a view to give effect to
this order, the Tribunal may be required to have premature
encashment and reinvestment of the amount.
Application
allowed to the aforesaid extent. Rule made absolute accordingly.
(JAYANT PATEL, J.)
*bjoy
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