Sri. Manju K V vs Sri. Suresh Kumar K R
2022 Latest Caselaw 5014 Kant

Citation : 2022 Latest Caselaw 5014 Kant
Judgement Date : 17 March, 2022

Karnataka High Court

Sri. Manju K V vs Sri. Suresh Kumar K R on 17 March, 2022

Bench: Alok Aradhe, S Vishwajith Shetty

                              1



     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

         DATED THIS THE 17TH DAY OF MARCH, 2022

                           PRESENT

           THE HON'BLE MR. JUSTICE ALOK ARADHE

                            AND

       THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY

     MISCELLANEOUS FIRST APPEAL No.5856/2019

BETWEEN:

SRI. MANJU. K. V.
S/O VENKATESHA,
AGE: 29 YEARS,
OCC:DRIVER,
R/AT KADABAHALLI,
BINDIGANAVILE HOBLI,
NAGAMANGALA TALUQ,
MANDYA DISTRICT-571 432.               ... APPELLANT

(BY SRI SURESH M. LATUR, ADV.)

AND:

1.     SRI. SURESH KUMAR, K. R.
       S/O RAMAKRISHNAN, K. V.
       PROP. KALLADA TOUR & TRAVELS,
       NO.14, HOSUR MAIN ROAD,
       MADIVALA,
       BENGALURU-560 068.

2.     THE REGIONAL MANAGER
       UNITED INDIA INSURANCE COMPANY LIMITED,
       5TH & 6TH FLOOR, KRISHI BHAVAN,
       NRUPATHUNGA ROAD,
       HUDSON ROAD,
       BENGALURU-560 001.              ... RESPONDENTS
                                   2



(BY SRI JWALA KUMAR, ADV. FOR R2;
    V/O DTD 10.03.2022 NOTICE TO R1 IS D/W)

     THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 30(1)(A) OF EMPLOYEES COMPENSATION ACT, AGAINST
THE JUDGMENT AND AWARD DATED 07.01.2019, PASSED IN ECA
NO.73/2017, ON THE FILE OF THE XXI ADDITIONAL SMALL
CAUSES JUDGE & XIX ACMM., MEMBER, MACT, BENGALURU
(SCCH-23), PARTLY ALLOWING THE CLAIM PETITION FOR
COMPENSATION      AND     SEEKING   ENHANCEMENT      OF
COMPENSATION.

    THIS APPEAL COMING ON FOR ADMISSION, THIS DAY,
VISHWAJITH SHETTY J., DELIVERED THE FOLLOWING:

                          JUDGMENT

1. This appeal is filed by the claimant challenging the

judgment and award dated 07.01.2019 passed by the XXI

Addl. Small Causes Judge and Motor Accident Claims

Tribunal, Bengaluru, in ECA.No.73/2017, in so far as it relates

to awarding interest at the rate of 12% per annum on the

award amount from the date of the award till the date of

deposit.

2. The claimant had filed ECA.No.73/2017 before the

Tribunal under Section 22 of the Workmen's Compensation

Act, 1923, seeking compensation for the injuries sustained by

him during the course of his employment. The said claim

petition was allowed in part by the judgment and award dated

07.01.2019 and compensation of Rs.17,55,088/- was

awarded by the Tribunal with interest at the rate of 12% per

annum from the date of the award till the date of deposit. The

claimant has preferred this appeal challenging the said

judgment and award only with regard to the awarding of

interest.

3. Though the matter is listed for admission, with the

consent of the learned Counsel appearing on both sides, the

same is taken up for final disposal.

4. The substantial question of law involved in this appeal

is,

"Whether the Tribunal was justified in awarding interest on the compensation amount at the rate of 12% per annum from the date of award till realization?"

5. Section 4-A(3)(a) of the Employees' Compensation Act,

1923, reads as follows:

"4-A. Compensation to be paid when due and penalty for default.-

(1) . . . .

(2) . . . .

(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, pay 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."

6. From the reading of the above provision of law, it is

very clear that the claimant is entitled for interest at 12% per

annum on the compensation amount awarded from 30 days

after the date of accident till realization of the compensation.

The Tribunal without appreciating this aspect of the matter

has awarded interest at the rate of 12% per annum on the

award amount from the date of the award till realization.

7. Since the statute specifically provides that the claimant

is entitled for interest on the compensation amount at 12%

per annum after 30 days from the date of the accident till

realization, we are of the considered view that the Tribunal

was not justified in awarding the interest on the award

amount at 12% per annum from the date of the award and

the Tribunal should have awarded it from 30 days after the

date of accident. Accordingly, we answer the substantial

question of law in favour of the claimant.