NATIONAL INSURANCE CO. LTD. Vs. CONSUMER DISPUTES REDRESSAL FORUM
HIGH COURT OF KERALA
NATIONAL INSURANCE CO. LTD.
CONSUMER DISPUTES REDRESSAL FORUM
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DAMA SESHADRI NAIDU, J. -
(1.) Policyholders successfully maintain claims against the Insurance Company. The consumer fora award interest, too. While paying the amounts, the Insurance Company deducts tax-TDS. The Consumer Commission finds fault with the Insurance Company's deducting the tax. Has the Insurance Commission committed any wrong? The answer: No.
(2.) As all the four writ petitions involve the same question of law, besides having substantial factual similarities, I dispose them of through a common judgment. Only in W.P. (C) No.15341 of 2011 was the impugned order issued by the Motor Accidents Claims Tribunal; in the other petitions, the orders impugned were issued by different consumer fora. But the question of law in all remains the same.
(3.) In all the four writ petitions, the Insurance Company ("the insurer") is the writ petitioner. While paying the awarded compensation along with interest to the insured, the policyholders, the insurer deducted TDS (Tax Deducted at Source) at 10.30%. Aggrieved, the policyholders filed execution petitions before the adjudicatory authorities for realising the amounts the insurer had deducted. The adjudicatory authorities, in turn, allowed the execution applications holding that the award, in the first place, does not authorise the insurer to deduct the tax. Now the insurer is aggrieved.;
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