Yup! They do it all the time. I would also suggest that you move up to a higher quality material. Some of the new stuffing materials allow you to have "no drip" when the shaft is turning. This will eliminate the issue with the engine bilge filling with water.
My Hunter 31 had a slatted panel in the companionway. It was made from solid pieces of teak. Even if the engine bilge spilled over, the water would drain down into the small bilge area forward of the engine bilge.
They really do not like the idea of your engine bilge being allowed to drain into the main bilge. If you have an oil leak, you will be pumping oil overboard.