Madras High Court
S.Palaniammal vs S.Murugesan on 20 March, 2023
C.M.A(MD)No.55 of 2018
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 20.03.2023
CORAM
THE HON'BLE MR.JUSTICE R.VIJAYAKUMAR
C.M.A(MD)No.55 of 2018
S.Palaniammal ... Appellant/Petitioner
Vs.
1.S.Murugesan
2.The Branch Manager,
National Insurance Company Ltd.,
63, Rasi Plaza,
West Pradhakshanam Road,
Karur-639 002. ... Respondents/Respondents
PRAYER: Civil Miscellaneous Appeal is filed under Order Section 30
of the Workmen Compensation Act, to modify the order passed by the
Deputy Commissioner of labour, Dindigul made in W.C.No.106 of 2013,
dated 14.12.2015 by allowing the civil miscellaneous appeal.
For Appellant : Mr.N.Sudhagar Nagaraj
For R2 : Mr.D.Sivaraman
For R1 : No Appearance
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C.M.A(MD)No.55 of 2018
JUDGEMENT
The present appeal has been filed by the claimant challenging an
award passed in W.C.No.106 of 2013 on the file of Deputy
Commissioner of labour, Dindigul. The appeal has been filed primarily
challenging the reckoning of interest from the date of passing of the
award by the tribunal.
2. The learned counsel appearing for the appellant/claimant after
referring to the last portion of the award had contended that the Deputy
Commissioner of labour had directed the insurance company to deposit
the award within a period of 30 days from the date of receipt of a copy of
the award and in case of failure, the interest shall be calculated at the rate
of 12% from the date of accident. The learned counsel appearing for the
appellant had pointed out that the accident had happened on 5.10.2013
and the award was passed on 14.12.2015 and the claimant would be
losing interest for the 2 year period.
3. The learned counsel appearing for the appellant further
contended that as per Section 4-A of the Workmen’s compensation Act,
the compensation amount has to be paid within a period of 30 days from
the date on which it has become due. In other words, 30 days from the
date of the accident. The Hon’ble Supreme Court in a judgment reported
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C.M.A(MD)No.55 of 2018
in 2014 (2) SCC 298 (Saberabibi Yakubbhai Shaikh & Others Vs.
National Insurance Company Limited & Others) has specifically held
that the amount becomes due on the date of accident and not from the
date of the award passed by the tribunal.
4. Per contra, the learned counsel appearing for the insurance
company had contended that they have deposited the amount within a
period of 30 days as contemplated under the award. When the entire
award amount has already been deposited, the question of again
calculating interest would not arise.
5. I have carefully considered the submissions made on either side.
6. A perusal of the provision, namely Section 4-A and Section 3 of
Workmen’s Compensation Act will clearly indicate that the interest has
to be reckoned only from the date of accident and not from the date of
award. Therefore, the learned counsel appearing for the appellant is right
in contending that the tribunal has erroneously directed the insurance
company to pay interest only after a period of 30 days from the date of
award but it should have been 30 days from the date of accident. A
perusal of Section 4-A of Employee’s Compensation Act would clearly
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C.M.A(MD)No.55 of 2018
show that the compensation amount has to be paid immediately on the
date when it falls due that means on the date of accident itself. Any delay
would naturally attract interest at the rate of 12%. Therefore, the tribunal
was not right in awarding interest from 30 days after the date of receipt
of copy of the award. Therefore, the award of the Deputy Commissioner
of Labour, Dindigul in W.C.No.106 of 2013 is set aside to the extent that
it directs the insurance company to pay interest after 30 days from the
date of receipt of the award.
7. The quantum of compensation fixed by the Deputy
Commissioner of Labour will carry interest at the rate of 7.5% from
06.10.2013 onwards. The balance amount shall be deposited by the
insurance company.
8. With the above said observation, this Civil Miscellaneous
Appeal is allowed to the extent as stated above. No costs.
20.03.2023
NCC : Yes / No
Index : Yes / No
Internet : Yes / No
gbg
https://www.mhc.tn.gov.in/judis
C.M.A(MD)No.55 of 2018
To
1.The Deputy Commissioner of labour,
Dindigul.
2.The Section Officer,
Vernacular Section,
Madurai Bench of Madras High Court,
Madurai.
https://www.mhc.tn.gov.in/judis
C.M.A(MD)No.55 of 2018
R.VIJAYAKUMAR ,J.
gbg
Order made in
C.M.A(MD)No.55 of 2018
20.03.2023
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