Tanmololla Madhava Rao vs Smt. D. Ramadevi And Another
2021 Latest Caselaw 545 Tel

          THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

             CIVIL MISCELLANEOUS APPEAL No.942 of 2004


JUDGMENT:

This appeal is filed against the order dated 31.12.2003 passed by

the Commissioner, Workmen's Compensation, in W.C.No.138 of 2001 NF.

Heard learned counsel for the appellant. None appeared for the

respondent 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, including the liability of insurance

company in cases where the appeal against the owner stood dismissed

and the owner having not been made a party respondent. My learned

brother by referring to the judgment of Division Bench of this Court in

Meka Chakra Rao v. Yelubandi Babu Rao @ Reddemma3, had held

that the appellant/claimant is entitled to interest at 12% per annum from

the date of accident till the date of realisation. The judgment of Division

Bench being binding on this Court, and this Court finds no reason to

(2012) 12 SCC 540

(1976) 1 SCC 289

2001 (1) ALD 453 differ with the rationale in Meka Chakra. Though the compensation

amount 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.

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 calculated 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

ksm THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

CIVIL MISCELLANEOUS APPEAL No.942 of 2004

24th February, 2021

ksm