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2012 DIGILAW 759 (JK)

Geeta Devi & Ors. v. Som Nath & Anr.

2012-12-12

MANSOOR AHMAD MIR

body2012
1. This Civil First Miscellaneous Appeal is directed against the award dated 27.01.2010 (for short 'impugned award' herein) passed by the Assistant Labour Commissioner, Jammu, in a claim petition titled Smt. Geeta Devi and others v. M/S Som Nath Nagar and anr, whereby compensation to the tune of Rupees 4,07,700/- has been awarded. 2. The short controversy in the appeal at hand is that as to whether interest is payable to the claimants from the date of personal injury or from the date of determination of compensation amount or from any date interior to one month of the date of Commissioner's award. 3. The apex Court has already held in Pratap Narain Singh Deo v. Shrinivas Sabata and anr. reported in AIR 1976 SC 222 , that interest is payable to the claimant from the date personal injury is caused. However, in National Insurance Company v. Mubashir Ahmad and anr. reported in AIR 2007 SC 1298 and Oriental Insurance Company Ltd. v. Mohd. Nasir and another, reported in (2009) 6 SCC 280 , the apex court took a contrary view and held that interest is payable from the date of passing of the award. 4. The said judgements having been passed by two Judges Bench, the apex Court noticing the judgements aforementioned held in Oriental Insurance Co. Ltd. v. Siby George and Others, reported in AIR 2012 SC 3144 : [2012] SCCR 757, that the judgement passed by the apex Court reported in AIR 1978 SC 222 being by a larger Bench holds the field. Accordingly, it was held that a claimant would be entitled to the interest from the date personal injury is caused to him. It would be profitable to reproduce the paragraphs 9, 10, 11 and 12 of the judgement, which read as under: "9. The matter once again came up before the Court when by amendments introduced in the Act by Act No. 30 of 1995 the amount of compensation and the rate of interest were increased with effect from 15.9.1995. The question arose whether the increased amount of compensation and the rate of interest would apply also to cases in which the accident took place before 15.9.1995. The question arose whether the increased amount of compensation and the rate of interest would apply also to cases in which the accident took place before 15.9.1995. A three Judge Bench of the Court in Kerala State Electricity Board v. Valsala K., AIR 1999 SC 3502 answered the question in the negative holding, on the authority of Pratap Narain Singh Deo, that the payment of compensation fell due on the date of the accident. In paragraphs 1, 2, and 3 of the decision the Court observed as follows: '1. The neat question involved in these special leave petitions is whether the amendment of Ss.4 and 4A of the Workmen's Compensation Act 1923, made by Act No. 30 of 1995 with effect from 15-9-1995, enhancing the amount of compensation and rate of interest, would be attracted to cases where the claims in respect of death or permanent disablement resulting from an accident caused during the course of employment, took place prior to 15-9-1995? 2. Various High Courts in the country, while dealing with the claim for compensation under the Workmen's Compensation Act have uniformly taken the view that the relevant date for determining the rights and liabilities of the parties is the date of the accident. 3. A four Judge Bench of this Court in Pratap Narain Singh Deo v. Srinivas Sabata, (1976) 1 SCC 289 : ( AIR 1976 SC 222 :) speaking through Singhal, J. has held that an employer becomes liable to pay compensation as soon as the personal injury is caused to the workmen by the accident which arose out of and in the course of employment. Thus, the relevant date for determination of the rate of compensation is the date of the accident and not the date of adjudication of the claim/ 10. The Court then referred to a Full Bench decision of the Kerala High Court in United India Insurance Co. Ltd. v. Alavi, 1998(1) Ker. L.T. 951 (FB), and approved it in so far as it followed the decision in Pratap Narain Singh Deo. 11. The decisions in Pratap Narain Singh Deo was by a four Judge Bench and in Valsala by a three Judge Bench of this Court. Both the decisions were, thus, fully binding on the Court in Mubasir Ahmed and Mohd. Nasir, each of which was heard by two Judges. 11. The decisions in Pratap Narain Singh Deo was by a four Judge Bench and in Valsala by a three Judge Bench of this Court. Both the decisions were, thus, fully binding on the Court in Mubasir Ahmed and Mohd. Nasir, each of which was heard by two Judges. But the earlier decisions in Pratap Narain Singh Deo and Valsala were not brought to the notice of the Court in the two later decisions in Mubashir Ahmed and Mohd. Nasir. 12. In light of the decisions in Pratap Narain Singh Deo and Valsala, it is not open to contend that the payment of compensation would fall due only after the Commissioner's order or with reference to the date on which the claim application is made. The decisions in Mubashir Ahmed and Mohd. Nasir insofar as they took a contraty view to the earlier decisions in Pratap Narain Singh Deo and Valsala do not express the correct view and do not make binding precedents." 5. Keeping in view the above latest decision of the apex Court reported in AIR 2012 SC 3144 : [2012] SCCR 757, clearing all the doubts, a claimant has been held entitled to the interest from the date of receiving personal injury and not from the date of passing of the award. Viewed as such, I am left with no option but to toe the line and, accordingly, hold that the claimant is entitled to the interest from the date of causing of personal injury- date of accident. 6. In the aforementioned backdrop, the appeal merits to be allowed. Accordingly, it is allowed and the claimants are held entitled to the interest from the date of causing of personal injury, i.e., 05.07.2006 with interest @ 6% per annum. 7. Disposed of.