NATIONAL INSURANCE COMPANY LTD Vs. DRAUPADIBAI

JUDGEMENT

(1.) This Revision petition under section 115 of the Civil Procedure Code has been filed against the order dated 4-10-2005 passed by the XII Additional District Judge, Indore (XII Motor Accident Claims Tribunal) in Execution Case No. 4 of 2005.

(2.) In brief, Shri Onkarsingh, the husband of respondent No. 1, father of respondents No. 2 to 4 and son of respondents No. 5 and 6 had died in a motor accident on 15-4-2004. The Motor Accident Claims Tribunal had passed the award dated 14-3-2005 in favour of the respondent No. 1 to 6 awarding a sum of Rs. 7,85,000/- along with 9% interest from the date of application and apportioning the amount of compensation and interest amongst the claimants. The appellant INsurance Company deducted a sum of Rs. 7,917/- as TDS (tax deduction at source) under section 194A of the INcome Tax Act, 1961 (hereinafter referred to as '1961 Act') while depositing the interest amount, therefore, the question about the legality of deduction arose before the Executing Court. The Executing Court by the impugned order held that since the amount of interest payable to each of the claimant is less than Rs. 50,000/-, therefore, the appellant INsurance Company cannot deduct tax at source under section 194A of the 1961 Act.

(3.) I have heard the learned counsel for the parties and perused the record.