ORDER : K. HEMA, J. 1. Does the expression, "order appealed against" contained in the third proviso to Section 30 of the Workmen's Compensation Act ('the Act' for short) relate to 'interest or penalty' awarded u/s 4A of the Act? If not, is it necessary for appellant to deposit any amount other than what is referred to in Section 30(1)(a) viz., "lump sum" compensation, to entertain the appeal under the said section? Can appellant be insisted to deposit the amount ordered as 'interest or penalty' for entertaining an appeal u/s 30(1)(a) or u/s 30(1)(aa) of the Act, by virtue of the third proviso to Section 30 of the Act? In the absence of depositing any amount awarded as 'interest and penalty' u/s 4A of the Act, is there any bar under the third proviso to Section 30 of the Act, to entertain the appeal filed u/s 30(1)(a) or u/s 30(1)(aa) of the Act? The above preliminary questions arise for consideration in the appeal filed u/s 30(1)(a) and Section 30(1)(aa) of the Act. 2. As per the impugned order, the Commissioner for Workmen's Compensation ('the Commissioner' for short) ordered appellant to pay a lump sum compensation of Rs. 1,39,130/- with simple interest at 12% with effect from 30/07/2001, the date of filing of this petition and Rs. 1000/- for funeral expense within 30 days of receipt of this order. In default, claimant was allowed to realize 30% of such amount towards penalty. The said order is challenged in this appeal. 3. On filing of this appeal, the Registry noted a defect that the amount payable towards 'interest and penalty' is not deposited by appellant, as contemplated under third proviso to Section 30(1) of the Act. This defect was noted, in the light of the decision another Division Bench of this Court in New India Assurance Co. Ltd. Vs. Biju, Therefore, the appeal came up for hearing on the preliminary question of maintainability. 4. In the course of hearing of the appeal on maintainability, it came to our notice that this appeal is virtually, two separate appeals, filed both u/s 30(1)(a) Section 30(1)(aa) of the Act.
Ltd. Vs. Biju, Therefore, the appeal came up for hearing on the preliminary question of maintainability. 4. In the course of hearing of the appeal on maintainability, it came to our notice that this appeal is virtually, two separate appeals, filed both u/s 30(1)(a) Section 30(1)(aa) of the Act. The appellant is challenging "lump sum" of compensation awarded u/s 4 read with Section 22 of the Act, by filing an appeal u/s 30(1)(a) of the Act and he is also challenging 'interest and penalty' awarded Section 4A of the Act by filing an appeal u/s 30(1)(aa) of the Act. The order appealed against u/s 30(1)(a) is the order awarding lump sum compensation and the order appealed against u/s 30(1)(aa) of the Act is the order awarding 'interest or penalty'. 5. However, it was also noticed that there were certain omissions in the memorandum and hence, an application for amendment was filed. The said petition was allowed and appeal memorandum was amended and copy of amended appeal memorandum also produced. The appeal came up for hearing for admission, today. Heard Dr. Thushara James, learned counsel for appellant. She strenuously argued that to entertain an appeal u/s 30(1)(a) of the Act, it is not necessary to deposit any amount payable towards interest and penalty. 6. According to Dr. Thushara James, only the lump sum compensation awarded by the Commissioner need be paid, while filing appeal u/s 30(1)(a) of the Act. Having deposited the lump sum by appellant, there is no defect in this appeal, as noted by the Registry and the appeal is perfectly maintainable, it is argued. 7. On hearing Dr. Thushara James and on considering the defect noted by the Registry, we find that it is necessary to understand first, the scope of Section 30(1) and particularly the third proviso to Section 30(1) of the Act. Section 30 of the Act reads thus: 30.
7. On hearing Dr. Thushara James and on considering the defect noted by the Registry, we find that it is necessary to understand first, the scope of Section 30(1) and particularly the third proviso to Section 30(1) of the Act. Section 30 of the Act reads thus: 30. Appeals.--(1) An appeal shall lie to the High Court from the following orders of a Commissioner, namely:-- (a) an order awarding compensation a lump sum whether by way of redemption of a half-monthly payment or otherwise or disallowing a claim in full or in part for a lump sum; (aa) an order awarding interest or penalty u/s 4A; (b) an order refusing to allow redemption of a half-monthly payment; (c) an order providing for the distribution of compensation among the dependants of a deceased (employee), or disallowing any claim of a person alleging himself to be such dependant; (d) an order allowing or disallowing any claim for the amount of an indemnity under the provisions of sub-section (2) of Section 12; (e) or an order refusing to register a memorandum of agreement or registering the same or providing for the registration of the same subject to conditions: Provided that no appeal shall lie against any order unless a substantial question of law is involved in the appeal, and in the case of an order other than an order such as is referred to in clause (b), unless the amount in dispute in the appeal is not less than three hundred rupees: Provided further that no appeal shall lie in any case in which the parties have agreed to abide by the decision of the Commissioner, or in which the order of the Commissioner gives effect to an agreement come to by the parties: Provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealed against, (2) The period of limitation for an appeal under this section shall be sixty days. (3) The provisions of Section 5 of the Limitation Act, 1963 (36 of 1963), shall be applicable to appeals under this section. (emphasis supplied) 8.
(3) The provisions of Section 5 of the Limitation Act, 1963 (36 of 1963), shall be applicable to appeals under this section. (emphasis supplied) 8. A reading of Section 30 of the Act shows that a person is entitled to file an appeal from any of the orders of the Commissioner which are referred to in sub-clauses (a) to (e) of Section 30(1) of the Act. From "an order awarding compensation a lump sum", an appeal shall lie before the High Court under clause (a) of Section 30(1) of the Act. But, as per the third proviso to Section 30(1) of the Act, no such appeal by an employer shall lie, unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the "order appealed against". 9. The expression, "order appealed against" used in the third proviso to Section 30(1) is very significant. What is such order "order appealed against" is clear from a plain reading of the third proviso itself. It is the order referred to in clause (a) of Section 30(1) of the Act. A reading of clause (a) of Section 30(1) of the Act reveals that the order which can be appealed against under the said provision is only the order awarding "compensation a lump sum". Therefore, the requirement under the third proviso to Section 30(1) of the Act is only to deposit such amount viz., "compensation a lump sum", prior to filing of appeal under Clause (a) of Section 30(1) of the Act. 10. There is no requirement under the third proviso to Section 30(1) of the Act, to deposit any amount other than what is payable under the "order appealed against" under Clause (a) of Section 30. The "order appealed against" u/s 30(1)(a) of the being the "order awarding lump sum a compensation", borrowing the very same expression contained in Section 30(1)(a) of the Act), appellant need deposit only such amount (i.e., "lump sum" compensation), while filing an appeal u/s 30(1)(a) of the Act. The requirement under the third proviso to Section 30(1) of the Act is to deposit only such amount. 11.
The requirement under the third proviso to Section 30(1) of the Act is to deposit only such amount. 11. It is also clear from a reading of the relevant provisions under the Act that what can be awarded in an application filed for compensation, u/s 22 read with Section 4 of the Act is only, "lump sum" compensation. Section 22(2) of the Act lays down that an application may be made in such Form as may be prescribed showing the relevant details as stated therein. Rule 20 of the Workmen's Compensation Rules ('the Rules', for short) lays down that any application of the nature referred to in Section 22 shall be in the appropriate Form. 12. The Form prescribed for filing an application u/s 22 is under Form F in Rule 20. Column 5(b) in Form F under Rule 20 reads as follows: (5) The applicant is accordingly entitled to receive-- (a) xxxx xxxx xxxx (b) a lump sum payment of Rs. ..... Thus, it is clear that what can be asked for and what can be awarded by the Commissioner in an application u/s 22 of the Act is "lump sum" payment of compensation. 13. "Compensation" is defined u/s 2(1)(c) of the Act and it means "compensation as provided for by this Act". Such "compensation" is provided for by the Act specifically u/s 4 the Act and the said provision reveals that "compensation" payable under the Act is divided broadly into three categories: i) when death results from the injury ii) when permanent disablement results from the injury iii) where permanent or partial disablement result from the injury. Section 4 of the Act also shows that "compensation" payable under the said section is different from the nature of compensation payable under various other enactments which arises from tortuous liability or some other statutory liability. 14. There is a specific mode prescribed for computing compensation payable to an employee under the Act. Compensation has to be computed as stated in Section 4 read with the Schedule IV of the Act. The amount of compensation payable is to be quantified with reference to the relevant factor, number of years etc., as referred to in Schedule IV of the Act. A close reading of Section 4 read with Schedule IV of the Act makes it abundantly clear that the amount of compensation payable under the Act is a "lump sum".
The amount of compensation payable is to be quantified with reference to the relevant factor, number of years etc., as referred to in Schedule IV of the Act. A close reading of Section 4 read with Schedule IV of the Act makes it abundantly clear that the amount of compensation payable under the Act is a "lump sum". It is a sum ascertainable and which can be computed as per the relevant factors. 15. It is pertinent to note that for the purpose of computation of compensation, even the monthly wages of the workmen is a fixed amount, by virtue of Section 4(1)(b) Explanation II, As per Explanation II, even if the actual monthly wages of workmen exceed Rs. 4,000/-, monthly wages shall be deemed to be only Rs. 4,000/-, for the purpose of computing compensation under death and permanent disability [clause (a) and clause (b)]. Therefore even in cases where the monthly wages actually exceed Rs. 4,000/-, it has to be limited Rs. 4,000/- for the purpose of calculation. (Of course, Explanation II was in force only till 18/01/2010). 16. There are various other provisions in the Act which indicate that a fixed amount has to be paid in case of death etc. Resultantly, for persons of a particular age with particular wages, compensation payable under the Act will be the same. All these facts will make it clear that there is a certainty for the amount payable towards compensation and it is a "lump sum". This is because, unlike in cases falling under Motor Vehicles Act, no amount can be ordered for pain and suffering, transportation, extra nourishment, funeral expenses and so on. 17. Thus, "compensation as provided for by this Act" is a lump sum ascertainable which has to be computed, as provided in Section 4 read with Schedule IV of the Act. It is a "lump sum". It is such "lump sum" compensation which can be awarded by the Commissioner u/s 22 read with Section 4 of the Act. It is such "lump sum" which can be appealed against u/s 30(1)(a) of the Act. 18. The expression used in Clause (a) of Section 30(1) of the Act is, "an order awarding compensation a lump sum". From the above discussion, it is clear that u/s 22 read with Section 4 of the Act compensation has to be awarded as "lump sum".
18. The expression used in Clause (a) of Section 30(1) of the Act is, "an order awarding compensation a lump sum". From the above discussion, it is clear that u/s 22 read with Section 4 of the Act compensation has to be awarded as "lump sum". Therefore, it also follows that as per the third proviso to Section 30(1), the amount payable under the "order appealed against" under clause (a) of Section 30(1) of the Act is only the "lump sum" compensation, as referred to in the said provision itself. 19. The 'interest or penalty' ordered u/s 4A of the Act, being not included in Section 30(1)(a) of the Act, no such amount awarded as 'interest or penalty' need be deposited for entertaining an appeal u/s 30(1)(a) of the Act. As long as there is nothing in the 3rd proviso to Section 30(1) of the Act to indicate that appellant is bound to deposit 'interest or penalty' ordered u/s 4A of the Act, the Court shall not insist for payment of any such amount as a condition precedent for entertaining the appeal filed u/s 30(1)(a) of the Act. 20. If the Court were to insist for payment of 'interest or penalty' u/s 4A also, as a pre-requisite for entertaining an appeal filed u/s 30(1)(a) of the Act the expression, "an order awarding interest or penalty u/s 4A" will have to be included u/s 30(1)(a). But, this cannot be done, as per the basic principles of interpretation of Statutes themselves. Apart from this, separate appeal is provided u/s 30(1)(aa) of the Act against "an order awarding interest or penalty u/s 4A" and as per 3rd proviso to Section 30(1) of the Act, no amount is required to be deposited for entertaining such an appeal. 21. There is no mandate or requirement under the third proviso to Section 30 of the Act to deposit of any amount awarded by the Commissioner, as 'interest or penalty' u/s 4A of the Act, prior to the filing of appeal u/s 30(1)(aa) or under any of the sub-clauses in Section 30(1) of the Act. In this context, it is beneficial to look into a decision of another Division Bench of this Court in New India Assurance Co. Ltd. Vs. Biju, which is referred to by the Registry, while noting the defect. The relevant portion is extracted hereunder: 29.
In this context, it is beneficial to look into a decision of another Division Bench of this Court in New India Assurance Co. Ltd. Vs. Biju, which is referred to by the Registry, while noting the defect. The relevant portion is extracted hereunder: 29. As has been noticed already, Clause (aa) of sub-section (1) of Section 30 deals with appeals against orders awarding interest or penalty u/s 4A of the Act. In other words, the Legislature has put the order relating to interest or penalty u/s 4A in a separate category of its own. Section 30 does not provide for pre-deposit in the case of an appeal under Clause (aa) whereas in an appeal under Clause (a), the Statute provides that the appellant will have to deposit "the amount payable under the order appealed against" as a condition precedent. In short, appeals contemplated under Clause (a) and Clause (aa) are treated differently u/s 30 of the Act. 22. Thus, it is abundantly clear that the amount ordered u/s 4A of the Act towards 'interest or penalty' need not deposited, while filing an appeal u/s 30(1)(aa). There is also no requirement under the 3rd proviso to Section 30(1) to deposit any such amount, prior to filing of appeal u/s 30(1)(a) of the Act. The order appealed against under Clause (a) of Section 30(1) of the Act is the "order awarding lump sum a compensation" and no appeal shall lie under the said provision against an order awarding 'interest or penalty' u/s 4A of the Act. 23. The order awarding 'interest or penalty' u/s 4A of the Act can be appealed against under another sub-clause (aa) of Section 30(1) of the Act. While the order awarding "lump sum" compensation can be challenged in Section 30(1)(a), another provision is laid down as per Section 30(1)(aa) to challenge 'interest or penalty', ordered u/s 4A of the Act. Section 4A of the Act reads as follows: 4A. Compensation to be paid when due and penalty for default.--(1) Compensation u/s 4 shall be paid as soon as it falls due.
Section 4A of the Act reads as follows: 4A. Compensation to be paid when due and penalty for default.--(1) Compensation u/s 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 (employee), as the case may be, without prejudice to the right of the (employee) to make any further claim. (3) Where any employer is in default in paving the compensation due under this Act within one month from the date it fell due, the Commissioner shall-- (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent, per annual or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due; and (b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent of such amount by way of penalty: Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show-cause why it should not be passed. Explanation.-- For the purpose of this sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). (3A) The interest and the penalty payable under sub-section (3) shall be paid to the (employee) or his dependant, as the case may be.). (emphasis supplied) 24. Section 4A(3) lays down that where any employer is in default in paying the compensation due under the Act within one month from the date it fell due, the Commissioner shall direct the employer to pay simple interest thereon, at the rate of 12% per annum, or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government on the amount due.
Therefore, it is evident that compensation and interest will be payable on different dates. 25. Compensation as "lump sum" will be payable on date of incident (Vide - Healthways Dairy Products Company Vs. The Union of India (UOI) and Others, The interest will fall due and be payable, only if there is default of payment of compensation, within one month of such date. Therefore, the interest will be payable, not from the date on which compensation is payable. Interest can be awarded only if there is default in payment of the lump sum, within one month from the date of accident. 26. In this context, it is also relevant to note that the rate of interest payable is fixed by the Legislature. The Commissioner has no discretion u/s 4A of the Act to direct payment of interest at a lower rate or higher rate than what is laid down in Section 4A(3). The interest which can be awarded by the Commissioner is fixed at 12% or more, but it is only at such rate, as stated in Section 4A(3)(b). Therefore, the Commissioner cannot fix any interest to his choice, on default of payment of compensation as lump sum. The rate of interest, in any case, shall not be less than 12%. This is intended for the benefit of the employee and the Commissioner is bound to act accordingly. 27. It can also be seen that as per Section 4A(3)(b), the Commissioner can also direct the employer to pay, in addition to the amount of the arrears and interest thereon, a further sum not exceeding fifty per cent of such amount by way of 'penalty', if there is no justification for the delay in payment. But, such order for payment of penalty shall not be passed, without giving a reasonable opportunity to the employer to show-cause why it should not be passed. 28. Thus, there is definite Scheme under the Act for ordering "lump sum" compensation, "interest" and "penalty". There is a clear distinction between the amount which can be ordered by the Commissioner towards "lump sum" compensation, "interest" and "penalty". The conditions for passing such orders for "lump sum" compensation, "interest" and "penalty", the circumstances under which liability to pay such amounts arise, the date on which such liability arises, the cause of action etc., are all different.
There is a clear distinction between the amount which can be ordered by the Commissioner towards "lump sum" compensation, "interest" and "penalty". The conditions for passing such orders for "lump sum" compensation, "interest" and "penalty", the circumstances under which liability to pay such amounts arise, the date on which such liability arises, the cause of action etc., are all different. While an appeal will lie u/s 30(1)(aa) against an order for "interest or penalty" u/s 4A, an appeal shall lie u/s 30(1)(a), against "lump sum" compensation. 29. The orders which can be appealed against u/s 30(1)(a) and 30(1)(aa) are also different and distinct. The cause of action also arises under different situations. The liability for payment of compensation of "lump sum" and the amount payable towards "interest or penalty" also arises on different dates under different circumstances. The relevant facts to be looked into for fixing the "lump sum" of compensation and for directing payment of "interest or penalty" are distinct and different. The appeal u/s 30(1)(a) and u/s 30(1)(aa) involves different questions for consideration. 30. That may be the reason why unlike in other Statutes, specific provisions are laid down under the Act for filing separate appeals against order awarding "lump sum" compensation and an order awarding "interest or penalty". In this case, the appellant challenges both orders awarding "lump sum" compensation and also "interest or penalty". He filed appeal u/s 30(1)(a), challenging the "lump sum" compensation awarded u/s 22 read with Section 4 and the Schedule IV. He also filed appeal u/s 30(1)(aa), challenging "interest and penalty" awarded u/s 4A of the Act. 31. In the appeals filed by appellant u/s 30(1)(a) and 30(1)(aa), substantial questions of law are involved. Those questions are of different nature. Both these appeals are maintainable u/s 30(1)(a) and Section 30(1)(aa). The amount payable under the "order appealed against", falling under clause (a) of Section 30(1) is the "lump sum" compensation, which is specifically referred to therein. It does not include 'interest or penalty' ordered u/s 4A of the Act. So, for want of deposit of such 'interest or penalty' or any amount other than "lump sum" compensation, an appeal filed u/s 30(1)(a) cannot be said to be defective. 32.
It does not include 'interest or penalty' ordered u/s 4A of the Act. So, for want of deposit of such 'interest or penalty' or any amount other than "lump sum" compensation, an appeal filed u/s 30(1)(a) cannot be said to be defective. 32. It is not necessary for appellant who files an appeal against both u/s 30(1)(a) and Section 30(1)(aa) of the Act, to deposit any amount other than what is referred to in Section 30(1)(a) i.e., lump sum compensation, to entertain the appeals under the said section. The appellant need not deposit the amount payable as interest or penalty, ordered u/s 4A of the Act, as a condition precedent for entertaining either of the appeals filed u/s 30(1)(a) or u/s 30(1)(aa) of the Act. 33. From the discussion, it follows that if appeals are filed u/s 30(1)(a) or u/s 30(1)(aa) of the Act, challenging the order passed u/s 4A of the Act and also u/s 22 read with Section 4 of the Act, it will be illegal to insist appellant to deposit the amount awarded as 'interest or penalty' u/s 4A of the Act or any amount other than "lump sum" compensation, for entertaining such appeals. An appeal u/s 30(1)(a) has nothing to do with the amount payable as 'interest or penalty' u/s 4A. Therefore, if appeals are filed u/s 30(1)(a) or u/s 30(1)(aa) of the Act, without a certificate to evidence deposit of interest or penalty ordered u/s 4A of the Act, the Registry shall not note such failure, as a defect. In the absence of depositing the amount awarded as 'interest and penalty' under-Section 4A of the Act, there is no bar under the third proviso to Section 30(1) of the Act, to entertain the appeal filed under clause (a) of Section 30(1) or Section 30(1)(aa) of the Act. In the above circumstances, the following order is passed: 1. Objection of the Registry is overruled. 2. Registry shall number the appeal and post for admission, without any delay.