Smt. Bail Kumari and others vs Commissioner, Workmen's Compensation-Cum-Assistant Labour Commissioner and Another

Nawab Singh, J.—Amar Singh, employed as driver on Maruti Zen Car No. PB-10 BM-2345, owned by Randhir Singh - respondent, died in a road accident on August 11,2006, during the course of employment.

His widow and three children filed claim application u/s 22 of the Workmen''s Compensation Act, 1923 (for short "the Act). Vide impugned judgment dated April 11, 2011, the Commissioner, Circle No. 4, Ludhiana under the Workmen''s Compensation Act, considering the deceased to be 41 years old and earning Rs. 4000/- per month, applying the formula provided in the Workmen''s Compensation Act, assessed an amount of Rs. 3,62,740/- towards compensation. The Insurance Company was directed to pay the amount within 30 days and in case of default, it was to pay interest at the rate of 12% per annum from the date of judgment

Feeling dissatisfied with the impugned judgment, the claimants are in appeal before this Court.

The solitary submission of learned Counsel for the appellants is that the Commissioner did not pay interest from thirty days after the accident till adjudication of claim as provided u/s 4-A(3) of the Act.

The point at issue is not res-integra. In Sh. Anish v. 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 v. Srinivas Sabata and another 1976 (32) FLR 92 (SC) (ii) Kerala State Electricity Board and another v. Valsala K. and another etc. etc. 1999 (83) FLR 508 (SC) and of this Court, (iii) New India Assurance Company Limited v. Manphool Singh and others 2008 (117) FLR 763 (P & H) 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.

In view of above, the Commissioner erred in not awarding the interest as provided u/s 4-A(3) of the Act. The claimants are held entitled to the interest at the rate of 12% per annum on compensation of Rs. 3,62,740/-. Accordingly, the insurance company is held liable to pay the amount of compensation along with interest at the rate of 12% from September 11, 2006 (accident took place on August 11, 2006) till the awarded amount was deposited by the insurance company under the impugned judgment. The appeal is accepted to the aforesaid effect.