1 mst IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPLICATION NO.2778 OF 2010 IN FIRST APPEAL NO.1001 OF 2010 The New India Assurance Co. Ltd. Applicant versus Smt.Sharada S. Hirugade and others Respondents D.S.Joshi for applicant. Vaibhav Gaikwad i/by A.M.Kulkarni for respondents 1 to 3. CORAM : A.S.OKA, J. DATE : 28th October 2010 PC : 1. Heard learned counsel for the applicant and learned counsel for respondent nos.1 to 3 who are the original claimants. The first challenge in the appeal is that the policy was cancelled. The finding of the Tribunal is that the cancellation of the policy was intimated to the insured on the date of accident but the intimation was received by the concerned RTO a day after the accident. Thus, prima facie, the applicant will be liable to pay the compensation to third party. 2. However, the compensation amount granted appears to be on the higher side. Considering all these aspects, the civil application is disposed of by passing following order :- a) The first respondent-widow is permitted to withdraw a sum of Rs. 1.50 lakh (Rs.One lakh fifty thousand only) without security; 2 b) Rest of the amount shall be invested in fixed deposit with any nationalized bank till disposal of the appeal; c) The first respondent will be entitled to withdraw the interest accrued on fixed deposit; d) Withdrawal of the amount by the first respondent will be subject to final outcome of the appeal; e) In the event the applicant succeeds in the appeal, it will be also open for the applicant to recover the said amount from the insured by executing the said award. (A.S.OKA, J.) 3 mst FARAD CONTINUATION SHEET IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.1001 OF 2010 Office Notes, Office Memoranda of Coram, appearances, Court’s orders or directions and Registrar’s orders Court’s or Judge’s orders D.S.Joshi for appellant. Vaibhav Gaikwad i/by A.M.Kulkarni for respondents 1 to 3. CORAM : A.S.OKA, J. DATE : 28th October 2010 PC :- 1. Admit. Learned advocate for respondent nos. 1 to 3 waives service. Printing is dispensed with. (A.S.OKA, J.)