Madras High Court
The Branch Manager vs K.Theivanai on 3 November, 2023
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 03.11.2023
CORAM:
THE HONOURABLE MR.JUSTICE P.B.BALAJI
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 799 of 2011
In C.R.P(MD)No.1982 of 2018:
The Branch Manager,
The New India Assurance Company Limited,
Tenkasi Road,
Rajapalayam Town,
Virudhunagar District. ...Petitioner / Respondent / 3rd Respondent
Vs.
1.K.Theivanai
2.Minor.K.Anandha Kala
3.Minor.K.Haribalan ... Respondents / Petitioners / Claimants
(Minor 2nd and 3rd respondents represented through their mother and natural
guardian of the 1st respondent)
PRAYER : This Civil Revision Petition is filed under Article 227 of Constitution
of India to set aside the order passed by the Learned Subordinate Judge,
Srivilliputhur in E.P.No.20 of 2016 in M.C.O.P. No.118 of 2012 dated
26.07.2017.
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
For Petitioner :Mr.N.Dilipkumar
For R1 to R3 :Mr.K.K.Balaram
In C.R.P(MD)No.447 of 2020:
United India Insurance Company Limited,
Through it's Branch Manager,
Ranipettai. ...Revision Petitioner / Respondent / 2nd Respondent
Vs.
1.Ramalakshmi
2.Minor Ishwarya
3.Swaminathan ... Respondents 1 to 3/Petitioners 1, 2 and 4
/Petitioners 1,2 and 4
4.Bagavathi
5.Ramasamy
6.Balaparvathi
7.Thirumalai Subiramanian
8.Sivagama Sundari ... Respondents No.4-8 / Petitioners 5-9
/ Legal Heirs of Deceased 3rd Petitioner
PRAYER : This Civil Revision Petition is filed under Section 115 of Code of
Civil Procedure against the order dated 05.11.2019 passed in E.P. No.125 of 2014
in M.C.O.P. No.428 of 2004 on the file of the Principal Sub-Court, Tenkasi.
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
For Petitioner : Mr.I.Suthakaran
For R1 : No appearance
For R3, R5 & R7 : Mr.R.Gokul
In C.R.P(MD)No.1253 of 2019:
The Branch Manager,
United India Insurance Company Limited,
Madurai.
...Revision Petitioners / 2nd Respondent /
2nd Respondent
Vs.
1.Chidambaram ...1st Respondent / Petitioner / Claimant
2.Ravi ...2nd Respondent / 1st Respondent / 1st Respondent
PRAYER : This Civil Revision Petition is filed under Section 115 of Code of
Civil Procedure to set aside the order dated 25.04.2019 passed in E.P. No.381 of
2018 in M.C.O.P. No.470 of 2006 on the file of the Principal Sub Court,
Dindigul.
For Petitioner :Mr.S.I.Suthakaran
For R1 :Mr.V.Janakiramulu
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
In C.R.P(MD)NO.799 of 2019:
The Branch Manager,
United India Insurance Company Limited,
Rajapalayam Road,
Sankarankovil Town. ...Revision Petitioner / Respondent /
3rd Respondent
Vs.
Kaliammal ...Respondent / Petitioner / Claimant
PRAYER : This Civil Revision Petition is filed under Section 115 of Code of
Civil Procedure against the Fair and Decreetal order dated 23.03.2019 passed in
E.P. No.44 of 2017 in M.C.O.P. No.111 of 2013 on the file of MACT Sub Court,
Sankarankovil.
For Petitioner :Mr.S.I.Suthakaran
For Respondent :Mr..R.J.Karthick
:Mr.S.Srinivasa Raghavan
Appointed as Amicus Curiae
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
COMMON ORDER
All these four Civil Revision Petitions have been filed by Insurance
Companies aggrieved by the orders of attachment passed by the Executing Courts
in respect of the award amounts passed by the Motor Accident Claims Tribunal.
2. In all these cases, it is admitted that the compensation amount awarded
by the Tribunal has become final and it has also been paid, save the interest
amount on TDS. The dispute revolves only around the amount of TDS to be
deducted in respect of the interest portion of the amount, namely 7.5% per annum,
which has to be paid. The issue regarding payment of TDS to be deducted on
such interest is pending before the Larger Bench of this Court. It is also brought
to my notice that the same issue is also before the Hon'ble Supreme Court of India
in W.P(Civil) No.534 of 2020.
3. The learned counsel for the Insurance Company has also placed reliance
on the judgment of this Court in Cholamandalam MS General Insurance Co.
Ltd., Legal Department, Chennai 600 001 reported in 2020(4) CTC 53. In the
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
said decision, this Court has held that all the Execution Petitions relating to and
confined to the issue of Tax Deduction at Source under Section 194-A of the
Income-tax Act, 1961 shall stand stayed and await orders from the Larger Bench
of this Court on the applicability of Section 194-A of Income-tax Act, 1961 and
the mode and manner of application of the same will be in terms of final orders
that will be passed by the Larger Bench.
4. As already stated, it is also brought to the notice of this Court that the
Hon'ble Supreme Court of India is also seized of the same issue, Executing
Courts have to await the finality with regard to this issue of deduction of TDS on
the interest component of the award amount. It is also brought to the notice of this
Court by the learned counsel appearing for the Insurance Companies that despite
the order passed by this Court in C.M.A.No.1113 of 2020 dated 14.05.2020 in
Cholamandalam MS General Insurance Co. Ltd., Legal Department,
Chennai 600 001 reported in 2020(4) CTC 53, many Executing Courts across
the State are still taking up Execution Petitions and ordering attachment for non-
payment of the TDS amount on the interest portion. It is really unfortunate that
despite a specific order of this Court granting a blanket stay, Executing Courts are
ordering attachment of properties of the Insurance Companies.
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
5. The Insurance Companies are not evading or escaping their liability. It is
also represented by the learned counsel for the Insurance Companies that it is not
as if the amount has not been deposited. They have deposited the disputed amount
with the Government. It is also made clear that the entitlement of the claimants to
this amount is subject to the outcome of the decision of the Larger Bench/the
Hon'ble Supreme Court of India. It is a legal contention that is pending
consideration before a Larger Bench of this Court as well as before the Hon'ble
Supreme Court of India. Judicial discipline requires that the Executing Courts are
bound to abide by the order passed by this Court in Cholamandalam MS
General Insurance Co. Ltd., Legal Department, Chennai 600 001 reported in
2020(4) CTC 53. It is made clear that all the Execution Petitions relating to and
confined to the issue of Tax Deduction at Source under Section 194-A of the
Income-tax Act, 1961, pending on the file of all the Motor Accident Claims
Tribunals in Tamil Nadu, at whatever stage, shall stand stayed with regard to the
deduction of interest on TDS alone and in all other aspects, if any amount is due
and payable by the Insurance Companies, the Executing Courts may proceed with
the same.
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
6. This course of action would also sufficiently protect the interests of the
claimants as the Execution Petitions have been filed in time and the same are only
subject to the outcome of the decision of the Larger Bench of this Court and also
the Hon'ble Supreme Court of India. Thus, no useful purpose would be served by
keeping these revisions pending.
7. All these revisions necessarily have to be allowed. The orders of
attachment passed by the Executing Courts are hereby set aside. However, it is
made clear that the claimants are at liberty to claim the said amount deducted
towards TDS, subject to the result of the decision of the Larger Bench/ the
Hon'ble Supreme Court of India being in their favour.
8. In the result, these Civil Revision Petitions are allowed. The order of
attachment impugned in these revision stand set aside. No Costs. Registry is
directed to circulate this order to all Executing Courts dealing with Motor
Accident Claims Tribunal cases to ensure that hereafter no orders of attachment
are passed for non-payment of TDS portion in respect of the interest component
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
of the awards passed by Motor Accident Claims Tribunal, pending a final decision
in that regard is arrived at by the Larger Bench of this Court/Apex Court.
Speaking : Yes / No 03.11.2023
NCC : Yes / No
Internet : Yes / No
Index : Yes / No
CM
To,
1.The Subordinate Court, Srivilliputhur.
2.The Principal Sub-Court, Tenkasi.
3.The Principal Sub Court, Dindigul.
4. The Sub Court, Sankarankovil.
5.The Section Officer, V.R.Section,
Madurai Bench of Madras High Court,
Madurai.
https://www.mhc.tn.gov.in/judis
CRP(MD) Nos.1982 of 2018, 447 of 2020, 1253 of 2019 and 793 of 2019
P.B.BALAJI. J.
CM
CRP(MD) Nos.1982 of 2018, 447 of 2020,
1253 of 2019 and 799 of 2011
03.11.2023
https://www.mhc.tn.gov.in/judis
