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Himachal Pradesh High Court · body

2017 DIGILAW 323 (HP)

Hazar Mani v. Secretary, H. P. State Electricity Board

2017-04-10

DHARAM CHAND CHAUDHARY

body2017
JUDGMENT : Dharam Chand Chaudhary, J. In this appeal the impugned award dated 28.8.2012 passed by learned Commissioner, Employees’ Compensation, Rohru, District Shimla, in case RBT No. 8-2 of 2011 is under challenge to the limited extent that on the compensation awarded by learned Commissioner, the statutory interest on the default of the employer to pay the compensation due to the appellant-claimant within one month when it fell due has not been awarded. Being so, on the compensation i.e. Rs.2,71,120/- awarded to the appellant-claimant by learned Commissioner below, interest @ 12% per annum has been sought to be awarded. 2. One Sh. Saina Ram, husband of the appellant-claimant Hazar Mani was employed as Additional Foreman-cum- Driver in Sawra Kuddu Hydro Electric Project, H.P. Power Corporation Limited (HCL), Rohru on secondment basis. He died on 17.12.2008. In a claim petition filed under Section 22 of the Employees Compensation Act, 1923 (hereinafter referred 1 Whether reporters of the local papers may be allowed to see the judgment? to as he Act), learned Commissioner below while holding that said Sh. Saina Ram was employee of the respondents and died during the course of his employment, has assessed the compensation to the tune of Rs. 2,71,120/- and awarded the same to the appellant-claimant, however, without statutory interest @ 12% as the employer has admittedly failed to pay the compensation to the appellant-claimant within one month from the date when the same fell due to her. 3. Section 4-A (3)(a) of the Act provides that where any employer is in default in paying the compensation due within one month when the same fell due, the Commissioner shall in addition to the compensation amount due to the claimant shall order to pay the same together with simple interest @ 12% per annum or at such higher rate not exceeding the maximum of the lending rates of the scheduled bank. 4. It is seen that the interest @ 12% per annum is statutory and in a case where the employer fails to pay the compensation due to the claimant within one month from the date when the same fell due, the compensation payable to the claimant should be awarded together with interest @ 12% per annum from the date i.e. one month when the same fell due to the claimant. 5. 5. Learned counsel representing the respondents has failed to persuade this Court to concur with that part of the award which provides for award of interest on happening of an event i.e. the failure of the respondents to pay the awarded amount within one month from the date of the impugned award. Therefore, instead of awarding the interest @ 12% per annum on happening of an event i.e. failure of the respondents to pay the awarded amount to the appellant-claimant within one month from the date of award, the compensation should have been awarded to her together with simple interest @ 12% per annum from a date after one month when the same had fallen due to her. Admittedly, the compensation due to the appellant-claimant under the Act has not been paid to her within one month when the same fell due to her. Therefore, this appeal is allowed and consequently the compensation i.e. Rs.2,71,120/- awarded by the learned Commissioner below to the appellant-claimant shall carry simple interest @ 12% per annum from a date after one month when the same fell due to her. The impugned order shall stand modified to this limited extent. 6. The appeal is accordingly disposed of in the above terms, so also the pending applications, if any.