NATIONAL INSURANCE COMPANY DIVISIONAL OFFICE SRINAGAR THROUGH ITS DIVISIONAL MANAGER Vs. MST. KHATIJI WD/O GH. NABI SOFI & ORS.

JUDGEMENT

(1.) This Civil Revision Petition is filed against the order passed by the Motor Accidents Claims Tribunal, Srinagar dated 17.03.2010 as well as the order dated 31.03.2010 in Execution Petition No. Misc. 41, praying for directions to the petitioner to deposit the award amount in terms of the award passed on 26.09.1995 which was affirmed by the learned Single Judge on 23.11.2004 and by the Division Bench of this Court in LP Appeal No. 185/2004 dated 08.0.5.2009. The Executing Court, noticing the fact of deposit of Rs. 3,71,724.00 on 14.11.2005, of which intimation was not given to the respondents-claimants, ordered payment of interest by the Insurance Company even after deposit. The Executing Court also found fault with deduction of TDS amount to the tune of Rs. 29,505.00. Both the said orders are challenged in this Revision Petition.

(2.) It is the primary contention of the petitioner that the deposit was directed by the Division Bench of this Court while entertaining L.P. Appeal on 29.10.2005, in presence of the counsel for the respondents-claimants, therefore, separate intimation should have been given to the respondents-claimants with regard to deposit of the amount, does not arise. The learned counsel further submitted that whole amount having been deposited pursuant to the directions issued by the Division Bench of this Court, the claimants cannot claim interest for further period after the deposit of award amount by the Insurance Company and whatever interest has accrued with regard to the deposited amount, the claimants can receive the same. The learned counsel further submitted that the TDS amount was deducted and remitted to the Income Tax Department as the interest amount was received in lump sum by the claimants.

(3.) The learned counsel appearing for the respondents-claimants, on the other hand, submitted that even though order was passed in presence of the counsel of the respondents for depositing the amount, after the deposit was made no further intimation was given to the respondents-claimants or their counsel and, therefore, the future interest as awarded by the Executing Court is proper. Learned counsel further submitted that insofar as the interest component is concerned, the interest was to be spread over the years for which the interest was calculated and if for any year the payment of interest exceeds Rs. 50,000.00, TDS can be deducted and, therefore, the Executing Court was justified in ordering payment of the deducted interest amount to the respondents-claimants which was erroneously paid to the Income Tax Department by the Insurance Company.