Allahabad High Court
Kapil Sharma vs Bhagat Singh And Another on 16 August, 2023
Bench: Kaushal Jayendra Thaker
HIGH COURT OF JUDICATURE AT ALLAHABAD
?Neutral Citation No. - 2023:AHC:164938
Court No. - 44
Case :- FIRST APPEAL FROM ORDER No. - 1829 of 2016
Appellant :- Kapil Sharma
Respondent :- Bhagat Singh And Another
Counsel for Appellant :- Nigamendra Shukla,Anju Shukla
Counsel for Respondent :- Rahul Sahai
Hon'ble Dr. Kaushal Jayendra Thaker,J.
1. Heard Sri Nigamendra Shukla, learned counsel for the appellant and Sri Aditya Singh Parihar, appearing for Sri Rahul Sahai, learned counsel for the respondent.
2. By way of this appeal, the claimant has challenged the judgment and award dated 31.3.2016 passed by Workmen's Compensation Commissioner/Deputy Labour Commissioner, Meerut in ECA Case No. 56 of 2012 wherein the learned Commissioner has awarded Rs.3,22,790/- as compensation. However, the Commissioner has not awarded interest. This is the main ground of challenge raised by the appellant-claimant.
3. Except question of interest no other issue can be agitated by the appellant. The interest is the right of the claimant as per Section 4A of the Employee's Compensation Act, 1923 which reads as under :
"4A. Compensation to be paid when due and penalty for default:-
(1) Compensation under Section 4 shall be paid as soon as it falls due.
(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of the workman to make any further claim.
(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall--
(a) direct that the employer shall, in addition to the amount of the arrears, play simple interest thereon at the rate of twelve per cent. per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due; and
(b) If, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent of such amount by way of penalty:
Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed.
Explanation - For the purposes of this Sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
[(3A) The interest and the penalty payable under sub-section (3) shall be paid to the workman or his dependent, as the case may be.]]"
5. Non grant of interest is against the mandate of Statute, the Apex Court and this Court. Hence, the compensation awarded by the Commissioner shall carry interest at the rate of 12% from the date it accrue i.e. the date of accident.
6. Though vehemently objected by Sri Aditya Singh Parihar, learned counsel for the respondent, the appeal is partly allowed on the ground of interest which is raised above. The awarded amount shall carry 12% simple interest which is statutory rate of interest from the date of accident. The date of accident is 14.2.2011. The amount be deposited with interest as directed above within eight weeks from today.
Order Date :- 16.8.2023
DKS
