The New India Assurance Co. Ltd. vs Kundan And Anr.
2014 Latest Caselaw 1729 Del

*            IN THE HIGH COURT OF DELHI AT NEW DELHI

+                  FAO No.207/2013 & C.M. No.7038/2013 (stay)


%                                                   31st March, 2014

THE NEW INDIA ASSURANCE CO. LTD.           ....Appellant
                  Through: Mr. Sameer Nandwani, Advocate.


                          VERSUS


KUNDAN AND ANR.                                      ...... Respondents
                          Through:       Mr. Surender Kumar Gupta, Advocate
                                         for respondent No.2.
CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

To be referred to the Reporter or not?

VALMIKI J. MEHTA, J (ORAL)

1.           This first appeal is filed under Section 30 of the Employee's

Compensation Act, 1923 (hereinafter referred to as 'the Act') by the

insurance company against the impugned judgment of the Commissioner

dated 26.2.2013 by which the Commissioner has allowed the claim petition

filed by the respondent no.1 herein.

2.           The only issue urged before me on behalf of the appellant is

that the compensation which is payable under the Act is payable one month


FAO No.207/2013                                                Page 1 of 3
 after passing of the order by the Commissioner and not from one month after

the date of the accident.

3.           The Division Bench of four Judges of the Supreme Court in the

case of Pratap Narain Singh Deo Vs. Srinivas Sabata & Anr. (1976) 1

SCC 289 had held that interest is payable one month after the date of

incident in case compensation amount is not paid to the workman or

dependants of the workman. Subsequent judgments of the Supreme Court

without noticing the judgment in the case of Pratap Narain Singh (supra)

held that compensation is payable one month after the passing of the order

by the Commissioner. These are the judgments in the cases of National

Insurance Co. Ltd. Vs. Mubasir Ahmed and Anr. (2007) 2 SCC 349 and

Oriental Insurance Co. Ltd. Vs. Mohd. Nasir and Anr.(2009) 6 SCC 280.

Supreme Court in its recent judgment in the case of The Oriental Insurance

Company Ltd. Vs. Siby George & Ors. (2012) 12 SCC 540 has held that the

judgments in the cases of     Mubasir Ahmed (supra) and Mohd. Nasir

(supra) are per incuriam inasmuch as they are not in accordance with the

ratio of the Larger Bench judgment in the case of Pratap Narain Singh

(supra).

4.           In view of the above, there is no merit in the appeal, and the

same is therefore dismissed, and it is held that the Commissioner was
FAO No.207/2013                                               Page 2 of 3
 entitled to direct payment of interest one month after the date of the accident

and not one month after passing of the order of the Commissioner as was the

case of the appellant. Parties are left to bear their own costs.




MARCH 31, 2014                                 VALMIKI J. MEHTA, J.

Ne