Aliya Parveen Wd/o Shaikh Abrar v. New India Assurance Company Ltd.
2017-11-06
P.N.DESHMUKH
body2017
DigiLaw.ai
JUDGMENT : Heard learned Counsel for the appellant. None present for the respondents though served. Record reveals that on earlier date since respondents were not present, matter was adjourned for today to give an opportunity to the respondents to defend present appeal on merits. Inspite of same, none present. 2. Heard Learned Counsel for the appellant. It is submitted that appeal is preferred against the Judgment and order dated 17.09.2013 passed by Commissioner under Workmen’s Compensation Act, Labour Court, Akola, on the limited aspect, seeking interest @ 12% per annum on the amount of compensation of Rs.3,36,245/- awarded under impugned Judgment and order instead of interest @ 6% per annum as has been awarded and is directed to be paid on above stated amount by the Lower Court. It is further contended that appeal does not claim enhancement either of compensation amount or penalty for which appellant is held entitled for, but seeking interest at the higher rate from 6% to 12% on the amount of compensation, which is statutory interest as provided under Section 4A(3) of the Employee’s Compensation Act,1923. 3. For the purpose of present appeal, learned Counsel for the appellant relied on the case of Pravinbhai S. Khambhayata Versus United India Insurance Company Limited (2015) SCC 417. In this case, learned Labour Court had awarded compensation and penalty with interest @ 6% per annum, in the appeal legal heirs of deceased were held entitled to statutory interest @ 12% per annum and thus directions were issued to Insurance Company to deposit amount to Labour Commissioner. 4. The facts of appeal reveals that appellant had initiated proceeding before Learned Commissioner under Workmen’s Compensation Act, Labour Court, Akola by filing W.C.A. Case No. 2/2004, which came to be decided by impugned Judgment and order, thereby holding appellant entitled for compensation of Rs. 3,36,245/- along with interest @ 6% per annum thereon from 27.12.2003 till realization of the amount. The amount is ordered to be deposited within three months. In addition to compensation amount, amount of Rs.1,68,123/- is ordered to be deposited towards penalty to be paid within three months. 5.
3,36,245/- along with interest @ 6% per annum thereon from 27.12.2003 till realization of the amount. The amount is ordered to be deposited within three months. In addition to compensation amount, amount of Rs.1,68,123/- is ordered to be deposited towards penalty to be paid within three months. 5. Perusal of Section 4A(3) of The Employee’s Compensation Act, 1923, would reveal that whenever any employer is found in default of payment of compensation due under this Act, employer is liable to pay simple interest on the amount whatsoever is deemed fit for which he is liable to pay compensation alongwith interest @ 12% per annum. 6. In the case in hand, learned Trial Court though had held appellant entitled for compensation of Rs.3,36,245/- and granted interest @ 6% per annum, which appears to be contrary to the statutory provision as aforesaid. In view of the fact as aforesaid and considering the law relied by the appellant in the case of Pravinbhai (Supra), appeal is liable to be allowed as per final order. ORDER (i) Respondent No.1 shall deposit difference of amount of interest by calculating the same @ 12% per annum on the total amount of compensation of Rs.3,36,245/- and shall deposit the same within three months from today before the trial Court. (ii) In the circumstances, appeal is disposed in above terms with no order as to cost.