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2026 Supreme(Online)(Mad) 45271

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Anand Venkatesh, K.K. Ramakrishnan, JJ
New India Assurance Co. Ltd. – Appellant
Versus
Velkumari – Respondent


Advocates:
For the Appellants/Petitioners: C.Prabhu Rajadurai

Table of Content
1. court summarizes the appeal, facts of the fatal accident, and tribunal compensation award. (Para 1 , 2 , 3)
2. court holds that compensation for motor accidents is not taxable income; tax should not be deducted. (Para 4)

(Judgment of the Court was delivered by K.K.RAMAKRISHNAN,J.)

The appellant–Insurance Company has filed the present Civil Miscellaneous Appeal challenging the award passed in M.C.O.P. No.51 of 2021 by the Motor Accidents Claims Tribunal (II Additional District and Sessions Judge), Tuticorin, by judgment dated 04.01.2025. The challenge is confined to the quantum of compensation alone.

2.The case of the claimants is as follows:

The deceased, Arumugam, was working as a Senior Audit Officer in the office of the Director General of Audit, Chennai, and was aged about 56 years at the time of the accident. On 19.09.2019, at about 21:15 hours, while he was walking on the left side of the road from north to south at Palakarai in Perambalur District, the bus bearing Registration No.TN-46-D-3535, insured with the appellant, which was proceeding in the same direction from Tiruchirappalli to Perambalur, was driven in a rash and negligent manner and hit the deceased.

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