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Calcutta HC Enhances MACT Compensation; Rejects Insurer’s Reliance on Outdated ITR

Case Law Details

TaxGuru Citation
2026 taxguru.in 9459
Case Name
National Insurance Co. Ltd. Vs Biswanath Mukherjee & Anr. (Calcutta High Court)
Date of Judgement/Order
Only available for paid members
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National Insurance Co. Ltd. Vs Biswanath Mukherjee & Anr. (Calcutta High Court)

The Calcutta High Court disposed of the appeal filed by National Insurance Company Limited and the cross-objection filed by the claimant against the judgment and award dated 23.07.2024 passed by the Additional District Judge, 1st Court, Barasat, in a claim under Section 166 of the Motor Vehicles Act, 1988.

The claim arose from a road accident on 17.07.2012 in which the claimant, an advocate, sustained grievous injuries after allegedly being thrown from a bus due to rash and negligent driving while attempting to alight at a bus stop. The claimant asserted that he had been healthy before the accident and was the sole earning member of his family. The Tribunal allowed the claim and directed the insurer to pay compensation of ₹12,09,722 with interest at 9% per annum from the date of filing of the claim petition until realization.

The insurer challenged the award, contending that the Tribunal had wrongly accepted the claimant’s monthly income of ₹12,000 without proof and that the claimant’s income tax return for Assessment Year 2011-12 reflected annual income of ₹77,845. It also contended that the bus was being operated without a route permit because no permit had been seized by the police, constituting a policy violation. The claimant, through a cross-objection, sought enhancement of compensation, submitting that the income tax return relied upon by the insurer related to an earlier period and that future prospects had not been considered.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,804

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