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Mr. Ravi Agrawal v. Union of India

Writ Petition (Civil) · 2019 INSC 6Decided 3 Jan 2019
Writ Petition (Civil) No. 1107 of 2017
Justice A.K. Sikri · Justice Ashok Bhushan · Justice S. Abdul Nazeer

Background

The petitioner, himself a person with disability, filed a PIL on behalf of handicapped children whose parents hold LIC's "Jeevan Aadhar" insurance policy taken under Section 80DD of the Income Tax Act, 1961. A CBDT circular and the policy's terms meant that the annuity/lump-sum benefit for the disabled dependant could only be paid after the death of the parent/guardian who took the policy, even after the entire premium had been fully paid, and could not be advanced to help the dependant during the parent's lifetime.

Decision Breakdown

The Court held that Section 80DD's scheme of granting a tax deduction conditioned on payout only after the subscriber's death is based on a valid and rational classification designed to secure the disabled dependant's future after the caregiver's death, and does not violate Article 14; it is not for the Court to direct Parliament to amend the provision. The Court acknowledged there could be genuinely harsh cases, for instance an elderly, retired parent who can no longer earn but is still alive, where the current rule causes real hardship, but held the remedy lay with the legislature and executive, not the courts. The writ petition was disposed of by urging the Union of India to reconsider the provision and examine possible amendments in light of the concerns raised.

Lesson Learnt

Courts will not rewrite or strike down a tax or insurance eligibility rule merely because it causes hardship in individual cases, if the rule rests on a rational policy basis; filling such policy gaps is for Parliament, though courts may nudge the government to reconsider.

Official source (sci.gov.in)View Judgment (PDF)

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