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Himachal Pradesh High Court · body

2018 DIGILAW 1901 (HP)

Bimla Devi v. HPSEB

2018-11-01

VIVEK SINGH THAKUR

body2018
JUDGMENT : VIVEK SINGH THAKUR, J. 1. With the consent of the parties, present appeal has been taken for final hearing at this stage of admission in view of the nature of controversy involved in the present appeal. 2. This appeal has been preferred by petitioners/claimants for modification of award/order dated 21.3.2018, passed by learned Commissioner under Employees Compensation Act, 1923 (hereinafter to be referred as ‘Commissioner’ and ‘the Act’, respectively), whereby petitioners/claimants have been denied interest on the principal amount of compensation. 3. On perusal of record and pleadings of parties before the learned Commissioner as well as in appeal filed herein, following substantial question of law has arisen for determination: (1) Whether learned Commissioner has committed mistake of law by denying interest on the principal amount of compensation to the petitioner/claimants by observing that petitioners are satisfied by the principal amount only, without having any implied or explicit consent of the petitioners/claimants. 4. Learned counsel for the petitioners has restricted his claim in the appeal to the aforesaid substantial question of law and is not pressing the issue with respect to the penalty. 5. It is undisputed that during the pendency of the claim petition before learned Commissioner, respondents had calculated the principal amount of compensation as Rs.5,84,800/-, which was considered to be correct by learned Commissioner and accepted by the petitioners/claimants. Thereafter, the said amount was deposited by the respondents in the Court of learned Commissioner on 23.9.2016 and the said amount was released in favour of the petitioners. 6. As per Section 4A (3) (a) of the Act, in case of default on the part of the employer in paying the compensation due under this Act within one month from the date, it fell due, learned Commissioner shall direct that the employer shall, in addition to amount of arrears, pay simple interest thereon at the rate of 12% per annum or at such higher rate not exceeding the maximum of lending rates of any scheduled bank as may be specified by the Central Government by notification in official gazette, on the amount due. 7. The amount of compensation, in present case, has not only been admitted, rather, has been calculated by the respondents itself, which admittedly fell due after one month of the accident i.e. on 30.8.2013, but was deposited in the Court of learned Commissioner, on 23.9.2016. 7. The amount of compensation, in present case, has not only been admitted, rather, has been calculated by the respondents itself, which admittedly fell due after one month of the accident i.e. on 30.8.2013, but was deposited in the Court of learned Commissioner, on 23.9.2016. Therefore, keeping in view the provisions of the Act, the petitioners/claimants are entitled for interest at the rate of 12% per annum from 30.8.2013 to 23.9.2016. 8. Learned Commissioner, though, has allowed the claim petition filed by petitioners/claimants by holding that the petitioners are entitled for compensation along with interest, but has denied the payment of interest by observing that the principal amount deposited by respondents had been received by petitioners and they are satisfied by it. Whereas, the petitioners had never made any statement or filed any application or had expressed implied or explicit satisfaction by receiving the principal amount only, rather they continued to pursue their claim petition even after release of the said amount in their favour. Therefore, observation made by learned Commissioner for denying the interest component, for which petitioners are entitled as per Section 4A (3) (a) of the Act, is contrary to the record. 9. Therefore, learned Commissioner has committed a mistake of Law by denying the interest to petitioners/claimants on principal amount of compensation. 10. In view of above discussion impugned finding/observation of learned Commissioner, vide which petitioners have been denied interest is quashed and set aside and the petitioners/claimants in addition to principal amount of compensation, are held to be entitled for interest on the principal amount i.e. Rs.5,84,800/-at the rate of 12% per annum w.e.f. 3.8.2013 to 23.9.2016. The respondents are directed to deposit the said amount with the Registry of this Court within eight weeks from today. The appeal is allowed by modifying the impugned award passed by the Commissioner in aforesaid terms.