Syed Azaz, Nizamabad vs Mr. Shaik Abdul Rahman Another
2021 Latest Caselaw 532 Tel

             THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

               CIVIL MISCELLANEOUS APPEAL No.988 of 2010


JUDGMENT:

This appeal is filed against the order dated 10.09.2010 passed by

the Commissioner, Workmen's Compensation, in W.C.No.182 of 2003.

Heard learned counsel for the appellant, Sri Sriman, learned

Standing Counsel for the respondent No.2-insurance company.

The only question which has been pressed for consideration is with

regard to the date of payment of interest.

Whatever may be the position prior to the judgment of Hon'ble

Supreme Court in Oriental Insurance Company v. Siby George1,

finality was given in Siby George (1 supra) with respect to the issue

that compensation amount falls due and payable as on the date of

accident. This was in line with the judgment of Supreme Court in Pratap

Narain Singh Deo v. Srinivas Sabata2.

My learned brother Justice A. Rajasheker Reddy had elaborately

considered all the judgments cited by both the appellants as well as

respondents in C.M.A.No.871 of 2015, and by order dated 04.12.2015

had held that the appellant/claimant is entitled to interest at 12% per

annum from the date of accident till the date of realisation. However,

though the amount of compensation is due on the date of accident, the

liability to pay interest arises only after one month from the date of

accident. This is on account of Section 4A(3) of the Workmens

Compensation Act, 1923.

(2012) 12 SCC 540

(1976) 1 SCC 289 With respect to the contention of learned Standing Counsel for

insurance company that the insurance company may not be mulcted with

liability in cases where the appeal against the owner stood dismissed and

the owner having not been made a party respondent, the said contention

is liable to be rejected for the reason that the issue had already been

dealt in C.M.A.No.871 of 2015, dated 04.12.2015, by referring to the

judgment of Division Bench of this Court in Meka Chakra Rao v.

Yelubandi Babu Rao @ Reddemma3. The judgment of Division Bench

being binding on this Court, and there being no reason for this Court to

differ with the rationale in Meka Chakra, the contention of the learned

Standing Counsel for insurance company is rejected.

Accordingly, the civil miscellaneous appeal stands disposed of. It

is made clear that wherever the compensation amount has been

deposited in pursuance of the orders of Commissioner, the payment of

interest shall be reckoned from one month after the date of accident till

the date of deposit. No costs. Miscellaneous applications, if any

pending, shall also stand closed. No costs.

_____________________ CHALLA KODANDA RAM, J 24th February, 2021

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2001 (1) ALD 453 THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

CIVIL MISCELLANEOUS APPEAL No.988 of 2010

24th February, 2021

ksm