Madras High Court
The Branch Manager vs William Louis Linnet on 25 October, 2024
Author: P.Velmurugan
Bench: P.Velmurugan
C.M.A.(MD)No.1424 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 25.10.2024
CORAM:
THE HONOURABLE MR.JUSTICE P.VELMURUGAN
AND
THE HON'BLE MR.JUSTICE K.K.RAMAKRISHNAN
C.M.A.(MD)No.1424 of 2024
and C.M.P.(MD)No.15336 of 2024
The Branch Manager,
United India Insurance Company Limited,
42, Mutt Street,
1st Floor,
Kumbakonam ... Appellant
versus
1. William Louis Linnet
2. C.Adolphus Nirmal Raj
3. M.Sangeetha
4. K.Prabhu ... Respondents
PRAYER: Appeal filed under Section 173 of Motor Vehicles Act, as against
the Judgment and Decree dated 29.11.2022 made in M.C.O.P.No.11 of 2017
on the file of the Motor Accident Claims Tribunal, Additional District and
Sessions Judge (Fast Track Court), Kumbakonam.
For Appellant : Mr.I.Suthakaran
For R1 and R2 : Mr.AN.Ramanathan
1/6
https://www.mhc.tn.gov.in/judis
C.M.A.(MD)No.1424 of 2024
JUDGMENT
(Judgment of the Court was delivered by P.VELMURUGAN, J.)
This Civil Miscellaneous Appeal is filed as against the Judgment and
Decree dated 29.11.2022 made in M.C.O.P.No.11 of 2017 on the file of the
Motor Accident Claims Tribunal, Additional District and Sessions Judge (Fast
Track Court), Kumbakonam.
2. The respondents 1 and 2 herein filed a claim petition before the
Motor Accident Claims Tribunal in M.C.O.P.No.11 of 2017 seeking
compensation for the death of one Christopher Sahayaraj, who is the husband
of the first respondent and father of the second respondent herein, in an
accident that had occurred on 22.04.2016. The Tribunal, by Judgment and
Decree dated 29.11.2022, has awarded a sum of Rs.45,82,520/- as
compensation together with interest at the rate of 7.5% per annum from the
date of petition till the date of deposit. However, in Clause 7 of the Judgment
and Decree dated 29.11.2022, it has been stated as follows:
“(vii) As per the Judgment of the Hon'ble Madras High
Court in the Managing Director, TNSTC (Salem) Ltd. vs.
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Chinnadurai, 2016 (2) TNMAC 71, the Insurance Company
shall not deduct any amount towards TDS in the award
amount.”
Aggrieved over the said Clause, the Insurance Company has filed the present
Civil Miscellaneous Appeal.
3. The learned counsel appearing for the appellant submits that the
Insurance Company has to deduct TDS amount, while depositing the award
amount before the Tribunal. But, in this regard, there is a reference pending
before the Hon'ble Supreme Court as well as before this Court. In order to get
clarification with regard to the same, the Insurance Company has filed this
present appeal.
4. The Circular dated 14.10.2011 issued by the Income Tax Authorities,
whereby deduction of income tax has been ordered on the award amount and
interest accrued on the deposits made under the orders of the Court in Motor
Accident Claims case, was quashed by the High Court of Himachal Pradesh in
a suo motu proceedings, reported in 2014 SCC OnLine HP 4273 and the same
was followed by the Hon'ble Justice J.B.Padriwala (as he then was) leading
https://www.mhc.tn.gov.in/judis
the Division Bench of Gujarat High Court in the case of Oriental Insurance
Company Ltd. vs. Chief Commissioner of Income Tax (TDS) reported in
2023 (1) TNMAC 465. Aggrieved over the Judgment of the High Court of
Himachal Pradesh, an Appeal is filed and the same is pending before the
Hon'ble Supreme Court, however, there was no stay in the said challenge.
Since the reference regarding the deduction of TDS is pending before the
Hon'ble Supreme Court as well as before this Court, the issue herein will be
decided after the outcome of the decision of the Hon'ble Apex Court as well as
this Court.
5. Accordingly, this Civil Miscellaneous Appeal is disposed of. The
appellant/Insurance Company is directed to deposit the award amount together
with interest at the rate of 7.5% p.a. from the date of petition till the date of
deposit, less the TDS amount, within a period of six weeks from the date of
receipt of a copy of this order. On such deposit being made, the
claimants/respondents 1 and 2 herein are permitted to withdraw the amount
with accrued interest as ordered by the Tribunal. In case, if the Hon'ble
Supreme Court decides that there is no necessity to deduct the TDS amount
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for the compensation amount, the appellant/Insurance Company is directed to
deposit the said TDS amount to the credit of the claim petition. No costs.
Consequently, connected miscellaneous petition is closed.
[P.V.,J.] [K.K.R.K.,J.]
25.10.2024
NCC : Yes/No
Index : Yes / No
Internet : Yes / No
ogy
To
1. The Motor Accident Claims Tribunal,
Additional District and Sessions Judge
(Fast Track Court),
Kumbakonam.
https://www.mhc.tn.gov.in/judis
P.VELMURUGAN, J.
and
K.K.RAMAKRISHNAN,J.
ogy
25.10.2024
https://www.mhc.tn.gov.in/judis
