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Rajasthan High Court · body

2001 DIGILAW 34 (RAJ)

Magni Devi v. Shyamsunder

2001-01-10

N.P.GUPTA

body2001
JUDGMENT 1. - With consent of the learned counsel for the parties, the appeal itself is finally disposed of at this stage itself.The only grievance made by the appellant is that the learned Commissioner while making award of compensation has declined to award interest and penalty without any basis. Learned counsel contends that the liability to pay compensation was not denied by the employer and admittedly the payment of compensation was not made within one month of its becoming due. As such, on the face of language of Section 4-A of the Workman's Compensation Act, learned Commissioner had no discretion to decline to award interest. Regarding penalty, it is submitted, that the penalty could be declined only if the learned Commissioner was of the opinion that there was justification for not making payment within a month of its becoming due. Since there is not such finding, the penalty was also required to be awarded. 2. Controverting the submission, learned counsel for the respondent No. 2 submits that the employer had remained ex-parte and, therefore, it cannot be said that the employer had not denied the liability for payment. It was then contended that no claim for interest was made by the claimant, nor any issue was framed in this regard, nor even the demand for interest and penalty was pressed before the learned Commissioner. It is also contended that award of interest and penalty was in the discretion of learned Commissioner, as such non-award does not give any rise to substantial question of law. 3. I have given thoughtful consideration to rival contentions.Learned counsel for the employer, even at this stage is not in a position to make a categoric statement as to whether he admits the liability or denies the liability in absence of specific instructions from his client. In this view of the matter, it has but to be concluded that even as on the date, the employer has not denied the liability for payment of compensation. 4. In this view of the matter, on the face of clear language of Section 4-A, learned Commissioner was left with no discretion to decline to make an award of interest. In this view of the matter, it has but to be concluded that even as on the date, the employer has not denied the liability for payment of compensation. 4. In this view of the matter, on the face of clear language of Section 4-A, learned Commissioner was left with no discretion to decline to make an award of interest. So far as the question of penalty is concerned, under Section 4-A, the penalty on being recovered is to be credited to the State Government, as such if any one was aggrieved of non-award of the penalty, it was only the State Government who has not assailed the award seeking to claim penalty. As such, I am not inclined to go into the question of liability for payment of penalty. 5. Resultantly, the appeal is partly allowed. The impugned award is modified and it is directed that the amount of compensation awarded shall also carry simple interest @12% per annum w.e.f. the expiry of one month from the date when it fell due i.e. on 19.10.97 being the date of accident. Thus, the respondent No. 2 shall pay simple interest @12% p.a. w.e.f. 19.11.97 till the date of actual payment. Parties to bear their own costs.Appeal Party Allowed. *******