Madras High Court
Parasuraman vs Muthukumar on 19 January, 2021
C.M.A.No.1113 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 19.01.2021
CORAM
THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM
C.M.A.No.1113 of 2016
Parasuraman .. Appellant
Versus
1.Muthukumar
2.ICICI Lombard General Insurance Company Ltd.,
No.84 & 86, Arihant Plaze,
Walltax Road, Park Town,
Chennai – 600 003. .. Respondents
Prayer: Civil Miscellaneous Appeal filed under Section 30 of the Workmen
Compensation Act 1923, against the award dated 17.08.2014, made in
W.C.No.157/2011 on the file of the Deputy Commissioner of Labour – I,
Chennai.
For Appellant : Mr. F. Terry Chellaraja
For Respondents : R1 – Ex-parte
R2 – Mr. Sree Vidhya
1/4
https://www.mhc.tn.gov.in/judis/
C.M.A.No.1113 of 2016
JUDGMENT
The respective learned counsel appearing on behalf of the
appellant as well as the respondent fairly made a submission that the award
of interest is the only challenge which needs to be adjudicated in the present
appeal. As far as the award of interest is concerned, the Deputy
Commissioner of Labour granted the statutory interest of 12% per annum,
on condition that the opposite party should deposit the award amount,
within a period of 30 days, failing which they are liable to pay 12% from the
date of expiry of 30 days.
2. Section 4(A) 3(a) of the Employees Compensation Act
contemplates that the Commissioner may direct that, in addition to the
amount of arrears pays simple interest thereon at the rate of 12% per annum,
when the statute stipulates 12% per annum, the said interest is to be paid
from the date of accident and not on the expiry of 30 days from the date of
award. The concept of payment of interest on expiry of 30 days was an
invented theory and cannot be adjudicated by this Court. This apart, there is
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C.M.A.No.1113 of 2016
no logic behind grant of 30 days except direction are issued to deposit the
amount, within a period of 30 days. Such a period of 30 days is granted by
the Courts, by exercise its discretionary power and otherwise the statute
requires the compensation is to be paid by the person who is liable to pay
immediately and the awards are passed enabling the person to deposit the
award amount. Such a time granted by the Courts, do not exclude the
interest to be paid to the victim from the date of accident. This being the
principles to be adopted, this Court is of the considered opinion that all such
cases, the statutory interest of 12% per annum is to be granted from the date
of accident and not from the date of expiry of the period fixed by the Court
for deposit of award. In the present case, the quantum of award is fairly
admitted by the learned counsel for the appellant.
3. In view of the fact that there is no serious dispute about the
quantum of compensation award. This Court is inclined to direct the second
respondent Insurance Company to pay interest at the rate of 12% per annum
from the date of accident. Accordingly, the award amount of Rs.1,55,002/-
along with the interest at the rate of 12% per annum from the date of
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C.M.A.No.1113 of 2016
S.M.SUBRAMANIAM,J.
accident is to be deposited by the second respondent-Insurance Company,
within a period of 12 weeks from the date of copy of the judgment. On such
deposit, the claimant is permitted to withdraw by filing an appropriate
application and payments are to be made through RTGS . Thus, the award
dated 17.08.2014 passed in W.C.No.157/2011 stands modified and
CMA.No.1113 of 2016 stands allowed in part. No cost.
19.01.2021
Index: Yes/ No
AT
To
The Deputy Commissioner of Labour-I,
Chennai.
C.M.A.No.1113 of 2016
https://www.mhc.tn.gov.in/judis/
