The deposited amount under Section 173 of the Motor Vehicles Act shall be adjusted against the award, as established by relevant case law.

I.A. No. 8569/98

The petition has been tiled on behalf of the claimant for withdrawal of the amount deposited under Section 173 of the Motor Vehicles Act, 1988.

2. United India Insurance Company Ltd. filed an appeal against the interim award passed by the Tribunal. The appeal was disposed of on 6.1.1988. The claimant respondents have filed the present application for withdrawal of the said amount. Counsel for the appellant has no objection.

3. The question involved is as to whether the amount deposited under Section 173 of the Motor Vehicles Act can be allowed to be withdrawn by either of the party. It was pointed out that first proviso to Section 173 of the Motor Vehicles Act says that only a person, who is required to pay the amount can file an appeal and such person shall be liable to deposit rupees twenty five thousand or fifty per cent of the amount so awarded to maintain the appeal. Emphasis has been given by the learned counsel for the petitioner that two relevant things have been mentioned in the proviso i.e. a person who is required to pay the amount and that amount to be deposited i.e. rupees twenty five thousand or fifty per cent of the amount so awarded. Therefore, it has to be considered that the amount deposited, no doubt, is for the purpose of maintaining the appeal but the said amount would be adjusted against the award. Learned counsel in support of his submission relied upon a decision in the case of Sardara Singh vs. Durga Devi and others, 1996 (2) Accident Claim Journal 1188. He also referred a decision in the case of Devi Das vs. Chandrakala and others, 1996 (1) Accident Claim Journal 566 wherein similar view has been expressed. It is mainifest from the aforesaid decisions that the amount so deposited shall be adjusted against the award.

4. In that view of the matter, petition filed by the petitioner is allowed and the claimant petitioner is allowed to withdraw the deposited under Section 173 of the Motor Vehicles Act, 1988.