Oriental Insurance Company Limited vs Prithpal Kaur and Others

J.P. Singh, J.—Jagjit Singh died on 01.06.2006 because of the injuries sustained in a motor vehicular accident at Ramban Bazar while

driving Truck No. JK02D-6197 in the course of his employment.

His legal representatives, Respondent Nos. 1 to 3 lodged a Claim for Compensation with the Commissioner under Workmen's Compensation

Act, 1923 (Assistant Labour Commissioner), Jammu against the owner and insurer of the Truck.

Sustaining the Claim, the Commissioner awarded Rs. 5,40,448/- to the claimants, which included simple interest of Rs. 1,37,128/- payable with

effect from 01.07.2006 to 27.04.2009.

The Oriental Insurance Company Limited is in Appeal against the Commissioner's Award.

Appearing for the Appellant, its learned Counsel submitted that the Commissioner's Award was unsustainable, in that, interest awarded by the

Commissioner was not legally payable to the claimants in view of the law laid down by the Hon 'ble Supreme Court in Pal Raj v. Divisional

Controller, North East Karnataka Road Transport Corporation, reported as 2010 ACJ 2859, in terms whereof the interest would become

payable only if the awarded amount was not paid within thirty days of the Award. He further submitted that the age of the deceased being 35 years

at the time of the accident, only Rs. 3,94,120/- would be payable to the claimants and the Tribunal's Award of Rs. 4,03,and 320/- was, therefore,

unsustainable.

Appearing for the claimants, Mr. Jatinder Singh submitted that the judgment referred to by the Appellant's counsel cannot be relied upon in view

of the law laid down by the larger bench of Hon'ble Supreme Court of India in Pratap Narain Singh Deo v. Shrinivas Sabata, reported as 1976

ACJ 141(SC). He, however, did not contest the second submission of the Appellant's counsel and conceded that the Respondents would be

entitled to compensation of Rs. 3,94,120/-and not Rs. 4,03,320/- as assessed by the commissioner because the age of the deceased at the time of

his death was 35 years.

Considered the submissions of learned Counsel for the parties.

The issue projected by the Appellant's learned Counsel had fallen for consideration of this Court on an earlier occasion also when relying up on

Union of India (UOI) and Another Vs. K.S. Subramanian, and State of Himachal Pradesh v. Manoj Kumar, reported as AIR 2008 SCW 6375, it

was held that Partap Narain Singh Doe's case supra holds the field regarding the liability of the employer to pay interest on Claims under the

Workmen's Compensation Act, and the Workmen becomes entitled to Compensation the moment he suffers injury by accident which arises out of

and in the course of employment and the employer's liability to pay Compensation would not suspend until its determination by the Commissioner.

The death of Jagjit Singh having taken place out of and in the course of his employment, the liability of the employer to pay compensation for the

death would, therefore, arise from the date of the death and not after one month of the determination of such liability by the Commissioner and the

interest on compensation would, therefore, accrue from the date of the accident and not one month after the Award.

The Appellant's learned Counsel's plea based on a later two Bench judgment of the Hon'ble Supreme Court of India cannot, therefore, be

sustained.

However, in view of the concession of the claimants' learned Counsel, the Commissioner is found to have erred in assessing compensation

payable for the death of Jagjit Singh.

For all what has been said above, the Award of Commissioner, therefore, needs to be modified holding Respondent Nos. 1 to 3 entitled to

compensation of Rs. 5,23,785/-, i.e., Compensation of Rs. 3,94,120/-plus Rs. 1,29,665/- as interest accrued thereon w.e.f 1.07.2006 to

27.04.2009.

This Appeal, therefore, succeeds and is, accordingly, allowed. Modifying the Commissioner's Award dated 04.05.2009, Respondent Nos. 1

to 3 are held entitled to Rs. 5,23,785/- as compensation for the death of Jagjit Singh.

The amount payable to the claimants in terms of the modified Award be released in their favour minus the amount already received by them.

The balance amount, if any, be paid to the Insurance Company.