TDS Deduction on Arbitral Award Disallowed as Amount Becomes Judgment-Debt: Calcutta HC

Neo Built Corporation Vs Union of India (Calcutta High Court) Calcutta High Court examined whether the Union of India, acting through Metro Railway as an award-debtor, was entitled to deduct 10% tax at source (TDS) from an arbitral award amount while making payment to the award-holder. The arbitral award had attained finality after dismissal of the challenge under section 34 of the Arbitration and Conciliation Act, 1996, as well as the subsequent appeal. The Court had earlier directed the award-debtor to release the full awarded amount with interest, leading to partial payment being made. Alth...