Smt. Chittala Pochamma vs Mr.Mohd.Jahangir Anr
2021 Latest Caselaw 945 Tel

             THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

              CIVIL MISCELLANEOUS APPEAL No.3226 of 2004


JUDGMENT:

This appeal is filed against the order dated 30.08.2002 passed by

the Commissioner, Workmen's Compensation, in W.C.No.143 of 2001 F.

Heard learned counsel for the appellant, and the learned Standing

Counsel 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, 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
                                         2                           cma_3226_2004
                                                                           CKR, J

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 is partly allowed. 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 March, 2021

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2001 (1) ALD 453 3 cma_3226_2004 CKR, J

THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM

CIVIL MISCELLANEOUS APPEAL No.3226 of 2004

24th March, 2021

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