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Judgment
S.K. Seth, J.—This appeal is u/s 30 of the Workmen''s Compensation Act against the award passed by the Commissioner for Workmen''s Compensation (Labour Court), Indore. By the impugned award for the death of Vakil Ahmed during the course of employment the Commissioner has awarded a sum of Rs. 2,63,310/-.
Learned Counsel for the appellants submitted that besides the monthly salary of Rs. 3,000/- the deceased was also getting a daily bhatta of Rs. 40/-, which has not been taken into consideration by the Commissioner while applying relevant factor to determine the amount of compensation. It was also submitted that the Commissioner has failed to award interest as is required u/s 4A of the Workmen''s Compensation Act from the date of accident.
On the other hand, Shri S.S. Chawla, Advocate while supporting the impugned award submitted that no interference is warranted. It was submitted that Bhatta was not a part of wages and therefore, rightly excluded while computing compensation by the Commissioner, Workmen''s Compensation. Alternatively, it was submitted that Bhatta is included in wages and in view of the explanation appended to section 4 of the Act the maximum amount of wages which can be taken into consideration is Rs. 4,000/-. So far as interest is concerned, it was submitted that section 4A imposes a penalty on the employer for nonpayment of compensation under the Act and, therefore, the Insurance Company cannot be saddled with the liability to pay the penalty u/s 4A of the Act.
After hearing arguments and going through the record, I find that the deceased was employed as a Driver of a Gas Tanker. He met with an accident during the course of employment, as a result of which he died. There is no denial of this fact. The Commissioner for Workmen''s Compensation has taken into consideration only Rs. 3,000/- which was the monthly wages of the deceased. No reason has been assigned to exclude the daily bhatta which the deceased was getting. It is now well settled by the decision of this Court in Smt. Shakuntala and Others Vs. Kanna Dangi and Others, that wages as defined in section 2(1)(m) would include daily bhatta also. Same view has been taken by the Division Bench of Karnataka High Court in New India Assurance Company Limited and Another Vs. Subhas, . Thus, if we include the daily bhatta in the wages, the monthly wages of the deceased comes to Rs. 4,200/- only. As there is an embargo on the maximum wages fixed at Rs. 4,000/-, therefore, the compensation has to be calculated at the half amount of the monthly wages i.e. to say Rs. 2,000 x 175.54 it comes to Rs. 3,51,080/- which the appellants is entitled to receive jointly and severally from the respondents instead of Rs. 2,63,310/- as awarded by the Commissioner for Workmen''s Compensation.
Now we come to the penalty prescribed u/s 4A of the Act. The perusal of the section reveals that the penalty is leviable when the employer fails to make the payment of compensation as payable u/s 4 of the Act within one month from the date when it fell due. Undisputedly the compensation payable under the Act, had fallen due on the date of the accident. It was duty of the employer to make the payment of compensation as envisaged u/s 4 of the Act and having failed to do so the penalty provisions of section 4A are attracted. It was submitted by Shri Chawla that penalty is leviable only after giving a notice to pay the award. Thus, according to him, the Insurance Company is not liable to pay interest @ 12% from the date it fell due and the direction given by the Commissioner for Workmen''s Compensation does not call for any interference. After hearing rival submissions and considering the provisions of law, we do not find any substance in this submission, therefore, we direct that the amount of compensation ( Rs. 3,51,080/-) shall also carry interest @ 12% in accordance with section 4A of the Act which the appellants are entitled to recover from the respondents jointly and severally thus, the appeal is allowed to the extent indicated here-in-above.
Counsel fee Rs. 5,000/-, if certified.