Orissa High Court
Divisional Manager (Legal) vs Indumati Chhatria And Others on 4 August, 2021
IN THE HIGH COURT OF ORISSA AT CUTTACK
MACA No.399 of 2020
Divisional Manager (Legal), New ..... Appellant
India Assurance Com.Ltd.
Mr.G.P.Dutta, Advocate
- Versus-
Indumati Chhatria and others. ..... Respondents
A.K.Rout, Advocate.
CORAM:
JUSTICE BISWANATH RATH
ORDER
04.08.2021
Order No. Heard learned counsel for the respective parties.
10.
2. This appeal involves challenge to the judgment of the
learned 3rd Additional District Judge-cum-4th M.A.C.T.,
Cuttack in M.A.C.Case No.312 of 2014/ 356 of 2017 mainly
on the ground Nos.4 & 5 herein. Advancing his submission,
Sri Dutta, learned counsel appearing for the Insurance
Company submitted for the plea of the parties and material
disclosure there is apparent error in so far as calculation on
the monthly gross income of the deceased further absolute
silence by the tribunal on adjustment on account of Income
Tax looking to the monthly income of the deceased.
RKS
Therefore, a contention is raised by Sri Dutta that looking to
the valuation to the matter, the observation of the Tribunal so
far it relates to wage aspect is concerned should be interfered
as a consequence the compensation should also be modified
accordingly.
2. On the contrary, Sri Sahoo, learned counsel appearing
for the respondents submits that looking to the plea and the
evidence of respective parties, there remains no doubt in the
calculation aspect on monthly wage of the deceased
involved. Sri Sahoo claimed there is absolutely no error in
the calculation by the tribunal requiring any interference in
the same.
3. Considering the rival contentions of the parties, this
Court here finds since the gross salary of the deceased
exceeded Rs.6,00,000/- taking into account the salary of a
particular year, stand of Insurance Company that tax liability
should have been taken into account, finds force. In the
entire discussion on the wage aspect and to arrive in the
ultimate compensation, this Court finds the learned Tribunal
has not at all taken into account the tax burden involving the
income of the deceased involved here particularly from the
point of view of high income group employee involved
herein.
4. Taking into consideration the tax involvement,
demonstrated by the Insurance Company at paragraph-5 of
the memorandum of appeal considering the tax as a statutory
tax and employees are earning such high wages must be
paying tax, this Court instead of remitting the matter for
reconsideration of the compensation taking into account the
tax components involved herein, finds a flat deduction of
Rs.7,50,000/- will serve the purpose. This Court therefore
interfering in the award of Rs.52,93,000/- reduces the same
to Rs.45,43,000/-. The claimant shall also be entitled to
interest at the rate of 6% over and above the reduced
compensation granted by this Court and further the other
conditions of the Tribunal shall also be maintained, but in
appropriate proportionate.
5. This court also takes up the plea on the default
interest being awarded by the Tribunal, for a legal battle
exemption of being taken up by the Insurance Company and
ultimately the appeal being allowed in interference in the
award involved herein, there should not be any direction on
penal interest. Upon deposit of the entire amount in the trial
court within one and half month, receipt being filed in this
Court, Registry shall make arrangement for refund of the
statutory deposit deposited by the Insurance company along
with any interest accrued thereon as on the date of release.
With the aforesaid observation and direction, the
appeal stands disposed of.
Issue urgent certified copy of this order on proper
application.
(BISWANATH RATH)
JUDGE
