The court emphasized the need for timely compensation and adherence to judicial orders in motor accident claims, recognizing procedural delays as detrimental to justice.

Dr. S.K. Panigrahi, J.

1. The present Writ Petition concerns the withholding of a sum of ₹1,35,065/- from the total compensation awarded to the Petitioners in MAC Case No. 155 of 2002 by the learned 2nd Motor Accident Claims Tribunal (MACT), (Northern Division), Sambalpur vide award dated 31st December, 2024, which had been confirmed in MACA No.780 of2015 by this Court.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(i) The deceased individuals, Muliram Pradhan and his son Tuku Pradhan, tragically lost their lives in a road accident on 06.05.2001, while travelling in a tempo bearing registration number OR-06-D-2140. The accident occurred due to the rash and negligent driving of the tempo driver, resulting in a head-on collision with an incoming truck (registration no. OR-05-E-6595).

(ii) Following the accident, the legal heirs of the deceased filed a claim petition before the 2nd MACT, Sambalpur, which was later transferred to the 1st MACT, Dhenkanal, and renumbered as MAC No. 155 of 2015, seeking compensation for the untimely and wrongful deaths.

(iii) On 31.12.2014, the MACT allowed the claim petition and directed the Opposite Party–Insurance Company to pay a sum of ₹5,45,800/- along with interest at the rate of 6% per annum from the date of application, i.e., 11.07.2002, until the date of realization.

(iv) This award was subsequently challenged by the Insurance Company in MACA No. 780 of 2015, which was dismissed by this Court on05.01.2022, thereby affirming the Tribunal’s award in its entirety.

(v) Following the dismissal of the appeal, the Insurance Company initially issued a single cheque for ₹10,59,785/- in favour of all the claimants. However, the Tribunal returned this cheque, directing the Company to issue separate cheques to each claimant. While the cheques were drawn on 14.09.2023, they were only deposited with the Tribunal on 16.10.2023, resulting in an unexplained delay.

(vi) Based on their calculation, the petitioners submitted that the total amount payable, including 6% interest from 11.07.2002 to 01.02.2023, stood at ₹11,94,850/-. However, only ₹10,59,785/- was paid by the insurer, leaving a shortfall of ₹1,35,065/-, for which no justification or legal explanation was provided.

(vii) Consequently, the petitioners approached the Tribunal on 05.02.2024, seeking a direction to the Insurance Company to release the withheld amount. Despite repeated representations, the application remains pending without disposal.

(viii) In response, the Insurance Company has disputed the petitioners’computation, asserting that the correct total compensation inclusive of interest is ₹11,88,281/-, and not the higher figure claimed by the petitioners.

(ix) Out of this amount, the Company states that ₹1,28,496/- was deducted as TDS under Section 194A of the Income Tax Act , since the interest component exceeded ₹50,000/-, triggering mandatory tax deduction at source. This, according to the Company, was done in strict compliance with statutory requirements.

(x) Therefore, the Insurance Company maintains that the net amount of ₹10,59,785/-, after deducting TDS, has been duly deposited with the Tribunal, and no further amount is outstanding. It does not dispute the procedural history or the finality of the award, but contends that its actions post-award are in accordance with prevailing tax laws and do not amount to any violation of the Tribunal’s or Court’s directives.

II. SUBMISSIONS ON BEHALF OF THE PETITIONER(S):

3. Learned counsel for the Petitioner(s) earnestly made the following submissions in support of his contentions:

(i) The Petitioners contend that the Opposite Party Insurance Company has arbitrarily and i