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2011 DIGILAW 421 (AP)

United India Insurance Co. Ltd. , Secunderabad v. P. Prasanna Kumar

2011-06-08

R.KANTHA RAO

body2011
JUDGMENT I have heard the learned Counsel for the appellant-insurance company and the learned Counsel for the respondents/claimants in all the cases. 2. CMA MP No.665 of 2008 is filed to condone the delay of (50) days in filing the appeal in CMA (SR) No.13222 of 2008. 3. CMA MP No.1012 of 2008 is filed to condone the delay of (43) days in filing the appeal in CMA (SR) No.20788 of 2008. 4. CMA MP No.652 of 2008 is filed to condone the delay of (50) days in filing the appeal in CMA (SR) No.13235 of 2008. 5. CMA MP No. 1484 of 2008 is filed to condone the delay of (101) days in filing the appeal in CMA (SR) No.27824 of 2008. 6. Further in CMA MP No.1570 of 2008 in CMA (SR) No.27824 of 2008, in CMA MP No.689 of 2008 in CMA (SR) No.13235 of 2008, in CMA MP No.1017 of 2008 in CMA (SR) No.20788 of 2008, and in CMA MP No.688 of 2008 in CMA (SR) No.13222 of 2008, this Court passed interim orders granting stay of execution of the orders passed by the Court below. 7. CMA MP Nos.2474 of 2010, 2490 of 2010, 2472 of 2010 and 2471 of 2010 in all the aforesaid appeals have been filed by the respondents claimants in each case to vacate the interim stay passed by this Court. 8. The issue requires consideration in these matters is as to whether the appeals filed by the appellant-insurance company in each case are liable to be dismissed for not depositing the amount awarded by the Court below. 9. In WC No.50 of 2006 (CMA (SR) No.13235 of 2008) the learned-Commissioner for Workmen's Compensation held that the employer and the appellant-insurance company are jointly and severally liable to pay compensation to the claimants/applicants and directed the employer as well as the insurance company to deposit an amount of Rs.2,71,452/- which include the amount of compensation, stamp fee and advocate fee. The learned Commissioner further directed the opposite parties 1 and 2 to deposit the total amount within 30 days from the date of receipt of the order and held that on failure to make the deposit within the stipulated period, the claimants are entitled for interest @ 12% per annum on amount of compensation from the date of accident. 10. The learned Commissioner further directed the opposite parties 1 and 2 to deposit the total amount within 30 days from the date of receipt of the order and held that on failure to make the deposit within the stipulated period, the claimants are entitled for interest @ 12% per annum on amount of compensation from the date of accident. 10. In WC No.61 of 2007 (CMA (SR) No.20788 of 2008) the learned Commissioner for Workmen's Compensation held that the employer and the appellant-insurance company are jointly and severally liable to pay compensation to the claimants/applicants and directed the employer as well as the insurance company to deposit an amount of Rs.4,17,292/- which include the amount of compensation, stamp fee and advocate fee. The learned Commissioner further directed the opposite parties 1 and 2 to deposit the total amount within 30 days from the date of receipt of the order and held that on failure to make the deposit within the stipulated period, the claimants are entitled for interest @ 12% per annum on amount of compensation from the date of accident. 11. In WC No.14 of 2007 (CMA (SR) No.27824 of 2008) the learned Commissioner for Workmen's Compensation held that the employer and the appellant-insurance company are jointly and severally liable to pay compensation to the claimants/applicants and directed the employer as well as the insurance company to deposit an amount of Rs.4,46,811/- which include the amount of compensation, stamp fee and advocate fee. The learned Commissioner further directed the opposite parties 1 and 2 to deposit the total amount within 30 days from the date of receipt of the order and held that on failure to make the deposit within the stipulated period, the claimants are entitled for interest @ 12% per annum on amount of compensation from the date of accident. 12. In WC No.64 of 2006 (CMA (SR) No.13235 of 2008) the learned Commissioner for Workmen's Compensation held that the employer and the appellant-insurance company are jointly and severally liable to pay compensation to the claimants/applicants and directed the employer as well as the insurance company to deposit an amount of Rs.2,58,757/- which include the amount of compensation, stamp fee and advocate fee. The learned Commissioner further directed the opposite parties 1 and 2 to deposit the total amount within 30 days from the date of receipt of the order and held that on failure to make the deposit within the stipulated period, the claimants are entitled for interest @ 12% per annum on amount of compensation from the date of accident. 13. Admittedly, the said amounts were not deposited either by the employer or the appellant-insurance company within the stipulated period and the appeals have been filed with certain amount of delay which was sought to be condoned. The appellant-insurance company, however, deposited the award amount which does not include the interest accrued till the date of filing of the appeals. 14. The contention of the respondents/claimants is that as per Section 30(1)(a) III Proviso of Workmen's Compensation Act, 1823, the appeal filed by the insurance company shall not be admitted unless the memorandum of appeal is accompanied by a certificate issued by the Commissioner to the effect that the amount payable under the order appealed against has been deposited. Relying on the same provision, the respondents/claimants urged before this Court that the appeals shall be rejected and the interim stay granted by this Court earlier shall be vacated. 15. On the other hand, it has been contended on behalf of the insurance company that though the amount has not been deposited within the period stipulated by the Commissioner for Workmen's Compensation, the award amount was subsequently deposited and that the insurance company is not liable to deposit the interest. 16. Therefore, it has been urged on behalf of the appellant-insurance company to condone the delay for the reasons mentioned in the various petitions filed seeking condonation of delay and admit the appeals. 17. Having gone through the several authorities submitted on either side, I am of the considered view that since the appellant insurance company did not deposit the amount within the period stipulated by the Commissioner for Workmen's Compensation in each case, it is liable to pay the interest on the amount of compensation. The law is well settled that the compensation amount includes interest though it does not include penalty. The law is well settled that the compensation amount includes interest though it does not include penalty. Moreover, in the instant cases, the amount of compensation was not deposited within the period stipulated by the Court below and the Court below has specifically mentioned in its orders that in the event of failure to deposit the compensation amount within the stipulated period, it carries interest @ 12% per annum from the date of the petition till the date of deposit. 18. For the foregoing reasons, the delay is condoned and the appeals are admitted on condition of appellant-insurance company paying the interest @ 12% per annum from the date of order passed by the Court below in each case till the date of filing of the appeals within a period of four weeks from the date of passing of this order, failing which the appeals stand rejected. 19. The above mentioned CMA Nos.525, 526, 527 and 528 of 2011 are disposed of accordingly. No costs.