The United India Insurance Company Ltd v. Heard both sides

This Civil Revision Petition, under Section 115 of the Code of Civil Procedure, 1908 (for short, ‘CPC’), is directed against the order, dated 15.03.2010, in E.P.No.17 of 2009 in M.V.O.P.No.307 of 2003, on the file of the District Judge, Srikakulam, whereunder and whereby, the Execution Petition, filed under Order XXI Rule 43 read with Rules 64 to 66 CPC to issue notice to the petitioner herein / judgment debtor No.3 (United India Insurance Company) to pay the E.P. amount of Rs.6,21,588/-, and if it fails to pay the same issue Rule 43 CPC warrant and attach the E.P. schedule property belonging to the petitioner and sell the same in the auction for realization of the E.P. amount, was allowed.

M.V.O.P. No.307 of 2003 on the file of the Chairman, Motor Accident Claims Tribunal-cum-I Additional District Judge, Srikakulam, was filed by the respondents claiming compensation of Rs.6,00,000/- consequent upon the death of one Bhaskara Rao (deceased). After adducing evidence, the Tribunal awarded an amount of Rs.4,20,000/- to the respondents with interest at 7.5% per annum from the date of petition i.e., 13.12.2002 till the date of deposit. Thereafter, on

05.08.2009, the Insurance Company has deposited an amount of Rs.6,18,139/-. The said amount consists of the award amount i.e., Rs.4,20,000/-, Rs.1,91,105/- towards interest on the award amount from 13.12.2002 to 12.01.2009 and a sum of Rs.17,433/- towards interest from 13.01.2009 to till the date of deposit i.e., 05.08.2009 and deducted an amount of Rs.12,564/- towards T.D.S. and deposited the same with the Income Tax Department. As per calculation memo, the amount would be in excess by Rs.2,132/-. The petitioner filed detailed calculation memo before the Tribunal, but the Tribunal failed to appreciate the same. Hence, the present Civil Revision Petition.

Heard both sides.

It is not in dispute before this Court that the petitioner (United India Insurance Company) has deducted an amount of Rs.12,564/- towards T.D.S. and transmitted the said amount to the Income Tax Department. The Tribunal directed the petitioner to deposit the said amount also which is totally unjust and untenable, in view of the fact that the Corporation is a statutory body, which is bound to deduct the tax at source and transmit the same depending upon the income under Section 194-A of the Motor Vehicles Act 1988. Therefore, it cannot be said that the insurance company has violated provisions. Hence, the impugned order is liable to be set aside.