The Supreme Court has stayed a Bombay High Court ruling requiring Bajaj Allianz General Insurance Company Ltd. to compensate over 3.5 lakh farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for soya bean crop losses caused by severe rains in 2020.
However, a vacation bench of the Supreme Court, consisting of justices J K Maheshwari and Hima Kohli, ordered the insurance company to deposit Rs 200 crore with its registry within six weeks starting June 16. The Bombay High Court circuit bench in Aurangabad has ordered the insurance firm to compensate soya bean farmers in Maharashtra’s Osmanabad region who had crop loss due to heavy rains in the Kharif season of 2020.
Senior counsel Vivek Tankha and several lawyers, including Tanvi Dubey, represented the insurance company in the Supreme Court.
‘In the meantime, there will be a stay of operation of the impugned judgment subject to the petitioner depositing an amount of Rs 200 crore with the Registry of this Court within a period of six weeks from today, as requested. The amount deposited shall be invested in an interest bearing fixed deposit in a nationalised bank until further orders,’ the SC bench said in issuing notice on the insurance firm’s appeal on June 16.
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