JUDGMENT 1. Appellant in this appeal is aggrieved of and has challenged the award dated 14.06.2010 passed by the Commissioner Workmens Compensation Act (Assistant Labour Commissioner) Doda to the extent, it denies interest on the awarded amount from the date of accident. From the perusal of the award impugned, it clearly transpires that the appellant has been held entitled to compensation to the tune of Rs. 69, 616/- without any interest. 2. The Commissioner has, however, provided that, in case the payment of the compensation is not made by the respondents within 30 days of the announcement of the award, then the appellant would be entitled to simple interest @ 12% per annum from the date of announcement of the award till the compensation amount was deposited/paid. It is this part of the award, the appellant is aggrieved of. 3. Mr. M.P Gupta, learned counsel for the appellant, referring to provisions of Section 4 (A) of the Employees Compensation Act, 1923 (hereinafter The Act of 1923? for short) submits that in case the compensation amount has not been paid within 30 days from the date it is due, it will attract interest @ 12%. Relying upon the judgment of the Supreme Court in the case of Saberabibi Yakubbhai Shaikh and others V. National Insurance Co. Ltd. and others, 2014 ACJ 467 , learned counsel for the appellant submits that it is trite law that interest on the compensation payable under the Act of 1923, in terms of Section 4-A (3) (a) is required to be paid from the date of accident and not from the date of award. 4. Having heard learned counsel for the parties and perused the record, it is necessary to first set out the provision of Section 4-A (3) (a) herein below; (a) 'direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve percent 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' 5.
From plain reading of the provision reproduced hereinabove, it is clear that the employer is under an obligation to pay the compensation along with simple interest @ 12% per annum, if the compensation is due under the Act is not paid within one month. The sub section further provides clearly that the interest will be payable with effect from the expiry of one month from the date the compensation fell due. 6. The issue has been considered by the Supreme Court in a number of cases. In the case titled Saberabibi Yakubbhai Shaikh (supra), a Division Bench of the Supreme Court, after surveying the case law on the subject and relying upon its earlier judgment rendered in the case of Oriental Insurance Co. Ltd. V. Siby George, 2012 ACJ 2126 (SC) , clearly held that the compensation becomes due from the date of accident. At this stage, it would be appropriate to reproduce what was held by the Supreme Court in case of Siby George (supra): '(10) The court then referred to a Full Bench decision of Kerala High Court in United India Insurance Co. Ltd. v. Alavi, 1998 ACJ 1048 (Kerala) and approved it insofar as it followed the decision in Pratap Narain Singh Deo, 1976 ACJ 141 (SC). (11) The decision in Pratap Narain Singh Deo, 1976 ACJ 141 (SC) , was by a four-Judge Bench and in Valsala K., 2000 ACJ 5 (SC) , was by a three-Judge Bench of this court. Both the decisions were, thus, fully binding on the court in Mubasir Ahmed, 2007 ACJ 845 (SC) and Mohd. Nasir, 2009 ACJ 2742 (SC) , each of which was heard by two Judges. But the earlier decisions in Pratap Narain Singh Deo and Valsala K. were not brought to the notice of the court in the two later decisions in Mubasir Ahmed and Mohd. Nasir.' 7. From the aforesaid, it is abundantly clear that, compensation under the provisions of the Employees? Compensation Act, becomes due on the date of accident and if the same is not paid by the employee within one month, the same becomes payable along with interest @ 12% per annum from the expiry of one month from the date of accident.
From the aforesaid, it is abundantly clear that, compensation under the provisions of the Employees? Compensation Act, becomes due on the date of accident and if the same is not paid by the employee within one month, the same becomes payable along with interest @ 12% per annum from the expiry of one month from the date of accident. In the instant case, the Commission has gone wrong in awarding the interest, only if the compensation was not paid within one month from the date of announcement of the award. 8. In view of the aforesaid, this appeal is accepted. The impugned order is modified to the extent that the appellant shall be entitled to payment of interest on the compensation awarded @ 12% per annum with effect from the expiry of one month from the date of accident till the date of its deposit/payment. 9. Let the respondents calculate the interest aforesaid and deposit the same before the concerned Commissioner within a period of four weeks from today.