Smt. M. Upendra 3 Ors vs Smt. Razia Sulthana 2 Ors
2022 Latest Caselaw 3173 Tel

         THE HONOURABLE SRI JUSTICE M.LAXMAN

       CIVIL MISCELLANEOUS APPEAL No.466 of 2007


JUDGMENT:-

1.

The present appeal is directed against the Award dated

10.10.2006 in W.C.No.13 of 2006, on the file of the

Commissioner for Workmen's Compensation and Assistant

Commissioner of Labour-I, Hyderabad, whereunder, the

Commissioner determined the compensation of Rs.2,97,053/-,

which includes costs and awarded interest @ 12% per annum

from the date of default in payment of the amount within a

period of 30 days from the date of Award till the date of

realization.

2. The present appeal is at the instance of the claimants.

3. For the sake of convenience, the ranks of the parties, as

were referred to in the claim petition, are maintained.

4. Heard.

5. The only substantial question of law raised in this appeal is,

"Whether grant of interest, made by the Commissioner, suffer from any perversity?

6. Learned counsel for the claimants restricted the present

appeal to the interest granted by the Commissioner. This

appeal is filed challenging the assessment of quantum of

compensation; however, she restricted the present appeal to the

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interest portion only. From the Award impugned, the

Commissioner has granted interest @12% per annum not from

the date of accident but from the date of default in depositing

the amount within 30 days from the date of Award. In this

regard, it is apt to refer to Section 4A of Workmen's

Compensation Act, which reads as follows:-

" Section 4A in The Workmen' S Compensation Act, 1923 4A. Compensation to be paid when due and penalty for default.-

(1) Compensation under section 4 shall be paid as soon as it falls due.

(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of the workman to make any further claim. (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner may direct that, in addition to the amount of the arrears, simple interest at the rate of six per cent. per annum on the amount due together with, if in the opinion of the Commissioner there is no justification for the delay, a further sum not exceeding fifty per cent. of such amount, shall be recovered from the employer by way of penalty."

7. As seen from the above provision, the compensation

amount has to be deposited within thirty (30) days from the date

it fell due. The Hon'ble Apex Court has considered the words

"fell due" and held that it is the date of accident. Therefore, the

interest should have been granted from the date of Award,

excluding 30 days, till the date of deposit. Instead of awarding

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so, the Commissioner restricted the interest after passing of the

Award, which is contrary to Section 4A of Workmen's

Compensation Act.

8. In the result, the appeal is partly allowed and the Award

passed by the Commissioner is modified as follows:-

"The grant of compensation is confirmed and the interest is modified as, 'instead of 30 days from the date of Award,' it shall be 'from the date of accident till the date of deposit, excluding 30 days."

9. In the circumstances, there shall be no order as to costs.

10. As a sequel, miscellaneous petitions, if any pending in

this appeal, shall stand closed.

_____________________ JUSTICE M.LAXMAN

Dt.30.06.2022 ysk

ML,J cma_466_2007

THE HONOURABLE SRI JUSTICE M.LAXMAN

CIVIL MISCELLANEOUS APPEAL No.466 of 2007

Dt.30.06.2022 ysk

ML,J cma_466_2007

THE HONOURABLE SRI JUSTICE M.LAXMAN

CIVIL MISCELLANEOUS APPEAL No.466 of 2007