JUDGMENT : Sureshwar Thakur, J. The instant appeal arises from the impugned order rendered by the Commissioner under Workmen's Compensation Act, HPSEB, Shimla-3, (for short the ?Commissioner?), whereby compensation quantified in a sum of Rs. 3,38,880/- stood assessed qua the claimants, successors-in-interest of one Jai Singh, who uncontrovertedly during the course of his performing employment as an electrician under the respondent suffered fatal injuries. 2. The appellants herein standing aggrieved by the rendition of the learned Commissioner hence concert to assail it by preferring an appeal therefrom before this Court. 3. The instant appeal stands admitted by this Court on 14.05.2007 on the hereinafter extracted substantial questions of law: 1. Whether provision of Section 4-A (3) (a) & (b) of the Workmen's Compensation Act is mandatory, when the due amount of compensation has not been paid within one month from the date of accident? 2. Whether the award passed by the ld. Commissioner deserved to be modified when there is no reasoning for ignoring the interest as well as penalty part to the claimants/appellants? 3. Whether the appellants are entitled to get the interest on the compensation amount as awarded by the learned Commissioner below? Substantial questions of law Nos. 1 to 3. 4. The learned counsel appearing on either side do not contest the findings recorded by the learned Commissioner qua the predecessor-in-interest of the claimants/appellants herein suffering fatal injuries during the course of his performing employment as an electrician under his employer. However, the only address made herebefore by the counsel for the appellants for assailing the impugned order stands harboured upon the factum of it omitting to in detraction of the mandate enshrined in Section 4-1 (3) (a) of the Act, provisions whereof stand extracted hereinafter, wherewithin an obligation stands cast upon the Commissioner to on the compensation amount determined under Act, his levying interest thereon at the rate of 12% per annum, levy of interest in the aforesaid percentum on the compensation amount determined under the Act stands mandated in judicial verdicts to commence from one month elapsing since the fatal accident, whereas, in the impugned order the Commissioner omitting to levy on the compensation amount assessed qua the claimants interest thereon in the manner aforesaid, whereupon he contends qua the order impugned hereat standing modified. 5.
5. The aforesaid submission addressed before this Court holds absolute concurrence with the relevant mandate encapsulated in the Act besides is in tandem with judicial verdicts. Consequently, it is accepted. Since apparently the impugned order has not begotten compliance therewith it stands modified to the extent that the amount of compensation assessed therein qua the appellants/claimants shall beget interest @12% per annum from one month elapsing since the fatal accident. The provisions of Section 4A of the Act read as under:- ?4-A. 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 of 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 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, 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;? 6. Furthermore the mandate of Section 4-A (3) (b) of the Act which stands extracted hereinabove, stands espoused by the counsel for the appellant to stand infracted. Since an obligation stands cast therein upon the employer to in immediate sequel to the ill-fated occurrence make provisional payment of compensation, inconsonance wherewith the counsel for the respondent contends of with a sum of Rs.25,000/- standing deposited before the learned Commissioner hence compliance with the relevant mandate of the Act standing begotten.
Since an obligation stands cast therein upon the employer to in immediate sequel to the ill-fated occurrence make provisional payment of compensation, inconsonance wherewith the counsel for the respondent contends of with a sum of Rs.25,000/- standing deposited before the learned Commissioner hence compliance with the relevant mandate of the Act standing begotten. However, the aforesaid submission is unacceptable as a meager amount of Rs.25,000/- cannot be construed to be proportionate to the liability of the respondent herein towards compensation qua the dependents of the workman, significantly, when during the course of his performing employment under the respondent, he suffered his end. However, since ultimately an amount of Rs.3,38,880 stands assessed as compensation qua the appellant herein, the imposition of penalty upon the respondent herein for its omitting to beget compliance with the relevant mandate of the Act in a sum equivalent to the amount of compensation assessed under the impugned award would be improper. Consequently, statutory penalty in a sum of Rs. 40,000/- (Rs. Forty thousand only) stands imposed upon the respondent herein. Accordingly, all the substantial questions of law are answered in favour of the appellants and against the respondent. 7. For the reasons recorded hereinabove, the instant appeal is allowed and the award impugned before this Court is modified to the extent that the compensation amount Rs.3,38,880/- as assessed by the learned Commission qua the appellants/claimants shall carry interest at the rate of 12% per annum from one month elapsing since the fatal accident which occurred on 6.8.2005. The respondent herein is also directed to pay statutory penalty quantified in a sum of Rs.40,000/- (Rs. Forty thousand) to the claimants/appellant herein for its omitting to comply with the mandate of Section 4-A of the Act. All pending applications also stand disposed of. No order as to costs.