Bombay High Court
Aliya Parveen Wd/O Shaikh Abrar, ... vs New India Assurance Co. Ltd. ... on 6 November, 2017
Bench: P.N. Deshmukh
1 06.11 fa338.15 Judgment
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH : NAGPUR
FIRST APPEAL NO. 338 OF 2015.
1. Aliya Parveen Wd/o Shaikh Abrar,
Aged 43 years, Occ:Household,
2. Salma Parveen D/o Shaikh Abrar,
Aged 23 years, Occ:Household,
3. Mohammed Irshad S/o Shaikh Abrar,
Age 21 years, Occ:Education,
4. Mohammed Naushad S/o Shaikh Abrar,
Age 20 years, Occ:Education,
5. Mohammed Israr S/o Shaikh Abrar,
Age 25 years, Occ:Nil,
All R/o Chudimahal, Kasarkhed,
Balapur, Tq. Balapur, Dist. Akola,
Nos. 1 to 4 presently residing at Patur,
Tq. Patur, Dist. Akola. ... Appellants.
- Versus -
1. New India Assurance Company Ltd.,
through Divisional Manager, Tilak Road,
Old Cotton Market, Akola.
2. Gulam Sagir Gulam Dastagir,
Age-Adult, Occ:Transporter,
R/o Ward No.2, Satranjipura, Balapur,
Tq. Balapur, Dist. Akola. ... Respondents.
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Mr. S.A. Mohta, Adv. for the appellants.
None present for the respondents.
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2 06.11 fa338.15 Judgment
CORAM : P.N. DESHMUKH, J.
DATED : 6th NOVEMBER, 2017
ORAL JUDGMENT :
Heard learned Counsel for the appellant. None present for
the respondents though served. Record reveals that on earlier date
since respondents were not present, matter was adjourned for today
to give an opportunity to the respondents to defend present appeal
on merits. Inspite of same, none present.
2] Heard Learned Counsel for the appellant. It is submitted
that appeal is preferred against the Judgment and order dated
17.09.2013 passed by Commissioner under Workmen's
Compensation Act, Labour Court, Akola, on the limited aspect,
seeking interest @ 12% per annum on the amount of compensation
of Rs.3,36,245/- awarded under impugned Judgment and order
instead of interest @ 6% per annum as has been awarded and is
directed to be paid on above stated amount by the Lower Court. It is
further contended that appeal does not claim enhancement either of
compensation amount or penalty for which appellant is held entitled
for, but seeking interest at the higher rate from 6% to 12% on the
amount of compensation, which is statutory interest as provided
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3 06.11 fa338.15 Judgment
under Section 4-A (3) of the Employee's Compensation Act,1923.
3] For the purpose of present appeal, learned Counsel for
the appellant relied on the case of Pravinbhai S. Khambhayata
Versus United India Insurance Company Limited (2015)
Supreme Court Cases 417. In this case, learned Labour Court had
awarded compensation and penalty with interest @ 6% per annum,
in the appeal legal heirs of deceased were held entitled to statutory
interest @ 12% per annum and thus directions were issued to
Insurance Company to deposit amount to Labour Commissioner.
4] The facts of appeal reveals that appellant had initiated
proceeding before Learned Commissioner under Workmen's
Compensation Act, Labour Court, Akola by filing W.C.A. Case No.
2/2004, which came to be decided by impugned Judgment and
order, thereby holding appellant entitled for compensation of Rs.
3,36,245/- along with interest @ 6% per annum thereon from
27.12.2003 till realization of the amount. The amount is ordered to
be deposited within three months. In addition to compensation
amount, amount of Rs.1,68,123/- is ordered to be deposited towards
penalty to be paid within three months.
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4 06.11 fa338.15 Judgment
5] Perusal of Section 4-A(3) of The Employee's
Compensation Act, 1923, would reveal that whenever any employer
is found in default of payment of compensation due under this Act,
employer is liable to pay simple interest on the amount whatsoever
is deemed fit for which he is liable to pay compensation alongwith
interest @ 12% per annum.
6] In the case in hand, learned Trial Court though had held
appellant entitled for compensation of Rs.3,36,245/ and granted
interest @ 6% per annum, which appears to be contrary to the
statutory provision as aforesaid. In view of the fact as aforesaid and
considering the law relied by the appellant in the case of Pravinbhai
(Supra), appeal is liable to be allowed as per final order.
ORDER
(i) Respondent No.1 shall deposit difference of amount of interest by calculating the same @ 12% per annum on the total amount of compensation of Rs.3,36,245/- and shall deposit the same within three months from today before the trial Court.
(ii) In the circumstances, appeal is disposed in above terms with no order as to cost.
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