ICICI Lombard General Insurance Company Limited vs Jog Raj and another

Nawab Singh, J.—Jog Raj, aged 38 years, a driver by occupation, on truck bearing No. HR-58-A-08808, drawing salary of Rs. 4000/- per month suffered injuries on November 04, 2009 while on the steering wheel of the truck. He was rendered disabled to the extent of 80% on account of amputation of his left leg. He filed claim application u/s 22 of the Workmen''s Compensation Act, 1923 (for short "the Act). The Commissioner under the Act awarded an amount of Rs. 4,87,644/- to him along with interest at the rate of 8% per annum from December 04, 2009 (30 days after the accident) till the actual realisation. The Insurance Company was given two months time to make the payment.

Against the judgment of the Commissioner, the Insurance Company is in appeal before this Court raising the sole plea that the interest has been wrongly awarded from December 04, 2009, whereas, it should have been awarded from the date of passing of judgment.

The point at issue is not res-integra. In Sh. Anish vs. Nasrudin Kureshi and another FAO No. 2509 of 2011 decided on January 16th, 2012, this Court after relying upon judgments of the Hon''ble Supreme Court in (i) Pratap Narain Singh Deo vs. Srinivas Sabata and Another, (1976) 2 SCC 289 (ii) Kerala State Electricity Board and Another Vs. Valsala K and Another, and of this Court, (iii) N New India Assurance Company Limited Vs. Manphool Singh and Others, held as under:

(i) The relevant date for determining the rights and liabilities of the parties is the date of accident.

(ii) The compensation becomes due from the date of accident and not from the date of order of adjudication by the Commissioner, and

(iii) The employer has been given thirty days'' cushion and interest shall start running and liable to be paid after thirty days of the accident.

Above being the legal position, the Commissioner rightly awarded interest from December 04, 2009, that is one month after the accident.

It needs mention that as per provisions of Section 4 of the Act, the claimant is entitled to interest at the rate of 12% per annum on the amount of compensation, but since, he has not knocked the door of this Court, this Court is reluctant to modify the impugned judgment to that effect. The appeal is devoid of merit and is dismissed.