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2023 DIGILAW 1310 (ALL)

Ombiri v. Shankar Singh

2023-05-12

K.J.THAKER

body2023
JUDGMENT : 1. Heard Sri Nigamendra Shukla, learned counsel for the appellants and Sri Aditya Singh Parihar, learned counsel for respondent-Insurance Company. 2. By way of this appeal, the claimants have challenged the judgment and award dated 15.05.2009 passed by Workmen's Compensation Commissioner, Meerut in Case No. W.C.A. 45 of 2007 wherein the learned Commissioner has awarded Rs.2,96,520/- as compensation. However, the Commissioner has awarded 10% conditional interest namely if the awarded amount is not deposited within thirty days, then only the amount would carry interest at the rate of 12% from the date of filing of the claim petition till the amount is deposited. 3. The appellants have challenged the award on the following substantial question of law : "Whether the learned Workmen's Compensation Commissioner was justified/entitled to award the interest at the rate of 10% per annum after 30 days of award if the Insurance Company does not deposit the compensation of amount and denying to award interest at the rate of 12% per annum according to Section 4 A of the Workmen's Compensation Act, 1923 from the date of application as per the law laid down by the Apex Court in Pratap Narain Singh Deo vs. Shrinivas Sabata and Another, 1976 ACJ 414 and also in case of Ved Prakash Case, 1998 ACJ 1 SC" 4. Learned counsel for the appellant has submitted that the learned Commissioner could not have granted interest below statutory limit and that too with condition. Learned counsel has relied on the decision in First Appeal From Order No. 1553 of 2020 (Sanju Kushwaha vs. Vimal Kumar and Anr.) decided on 3.12.2020. 5. While going through the above question of law the Commissioner could not have granted interest at dehors the provisions of Section 4A of the Employee's Compensation Act, 1923, it would be pertinent to reproduced the above provision which is as under : "4A. Compensation to be paid when due and penalty for default:- (1) Compensation under Section 4 shall be paid as soon as it falls due. 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 it fell due, the Commissioner shall-- (a) direct that the employer shall, in addition to the amount of the arrears, play 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: Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed. Explanation - For the purposes of this Sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). [(3A) The interest and the penalty payable under sub-section (3) shall be paid to the workman or his dependant, as the case may be.]]" 6. The grant of interest below the statutory rate of interest and that too, with a condition that if there is no payment within one month, is against the mandate of the Court. This Court is fortified in its view by the decision of this Court passed in First Appeal From Order No.2126 of 2019 (Sunita Mishra and another Vs. The grant of interest below the statutory rate of interest and that too, with a condition that if there is no payment within one month, is against the mandate of the Court. This Court is fortified in its view by the decision of this Court passed in First Appeal From Order No.2126 of 2019 (Sunita Mishra and another Vs. M.T.G. Infra Power Pvt. Ltd and another) & decided on 13.9.2019 and decision in Sanju Kushwaha Case (Supra) wherein this Court has held as under : "5. I am pained to pen down that the Workmen's Commissioner in Uttar Pradesh are time and again to be conveyed that they are supposed to follow the statute under which they are functioning. I am supported in my view by the Judgments rendered by Supreme Court in Oriental Insurance Company Vs. Siby George and others, 2012 (4) T.A.C. 4 (SC); Civil Appeal No. 7470 of 2009 North East Karnataka Road Transport Corporation Vs. Smt. Sujatha decided on 2.11.2018; and Civil Appeal No. 10018 of 2017, Smt. Surekha and others Vs. the Branch Manager, National Insurance Company Ltd. decided on 3.8.2017 which holds that Insurance Company has to be made liable and further the relevant date from when the interest would be payable is decided therein, namely, one month of the date, it accrues. 6. Learned counsel Sri S.K. Mehrotra tried to point out that the Judgment is just and proper, however, I am not convinced as the statute demands that the claimant becomes entitled to interest within a period of one month from the date the amount accrues to him. In our case, the amount accrued to him one month after the accident took place, i.e., 25.10.2017 and the owner Vimal Kumar Verma, who was insured by the respondent no.2 did not make the payment. 7. In view of the aforesaid, Judgment and award impugned herein is modified. If the Insurance Company has not yet deposited the amount, it shall deposit the amount with interest at the rate of 12% from one month from the date of accident, i.e., 25.11.2017." 7. Though vehemently objected by Sri Aditya Singh Parihar, learned counsel for the respondent, the appeal is partly allowed on the ground of interest which has been raised above. Though vehemently objected by Sri Aditya Singh Parihar, learned counsel for the respondent, the appeal is partly allowed on the ground of interest which has been raised above. The awarded amount shall carry 12% simple interest which is statutory rate of interest from the date it occurred as per recent decision in Salim vs. New India Assurance. Co. Ltd. and another, 2022 ACJ 526. 8. Record and proceedings be sent back to the Tribunal forthwith.