JUDGMENT :

(J.B. Pardiwala, J.)

1. By this writ application under Article 226 of the Constitution of India, the writ applicant – an Insurance Company has prayed for the following reliefs:

“(A) Your Lordships be pleased to admit and allow this petition.

(B) Your Lordships be pleased to issue an appropriate writ/direction/order to quash and set aside the order at ANNEXURE A issued by the respondent and thereby allow waiver of interest charged u/s 201(1A) of the INCOME TAX ACT , 1961.

(C) Your Lordships be pleased to as an ad-interim ex-parte relief to stay the impugned order at Annexure A.

(D) Your Lordships may be pleased to quash and set aside any penalty/interest that may be levied by the Income Tax Department pursuant to the Annexure A order.

(E) Your Lordships may be pleased to lay down a fixed procedure to deal with the TDS issue in the MACP cases across the state.

(F) Your Lordships be pleased to pass such other and further orders may be deemed just and proper looking to the facts and circumstances of the case and in the interest of the justice.”

2. The facts giving rise to this writ application may be summarized as under:

3. The writ applicant before us is an Insurance Company. One Motor Accident Claim Petition bearing No.518 of 1999 came to be filed in the City Civil Court at Ahmedabad. The said claim petition came to be allowed by the MACT (Aux.) Judge, City Civil Court, Ahmedabad, vide judgement and award dated 18th January 2017.

4. The operative part of the order passed by the Tribunal in the above referred MACP reads thus:

“(a) The petitioners in MACP No. 518/1999 do recover Rs. 16.28,008/- (Rs. Sixteen lacs twenty-eight thousand eight only) from the opponent 1, 2 and 3 jointly and/or severally, together with running interest at the rate of 8% p.a from the date of petition till realization of the amount along with proportionate costs of the petition.

(b) The opponents are directed to follow the ratio laid down in the judgment of Hansgauri P. Ladhani V Oriental Ins. Co. Ltd, reported in 2007-GLH-2-291 as far as TDS is concerned".

5. Thus, the Insurance Company was directed to deposit the amount as awarded with interest and so far as the TDS was concerned, the Insurance Company was directed to follow the decision of this High Court rendered in the case of Hansaguri Prafulchandra Ladhani and others vs. The Oriental Insurance Company Ltd rendered in 2007 ACJ 1897 .

6. The writ applicant herein in due compliance of the judgement and award passed by the Tribunal, deposited the entire amount along with the TDS. The TDS to the tune of Rs.2,21,516/- was deposited through a cheque on 26th May 2017.

7. The deposit of the TDS referred to above was in accordance with the judgement of this High Court in the case of Hansaguri (supra).

8. It appears that thereafter, the original claimants preferred a Miscellaneous Application No.298 of 2017 before the Motor Accident Claim Tribunal, City Civil Court at Ahmedabad with a prayer to release the amount of Rs.2,21,516/- deducted towards the TDS as referred to above.

9. The Miscellaneous Application came to be partly allowed by the Tribunal vide order dated 4th August 2018, which reads thus: