Sri Mohd. Khaja Miyan vs The Manager, Andhra Bombay Carriers and The Divisional Manager, National Insurance Co. Ltd.

K.N. Keshavanarayana, J.—Smt. Preeti Patil, Advocate submits that she has filed vakalath in the Registry today on behalf of respondent No. 2. Submission is placed on record. Having regard to the short point involved and since, the said point is covered by the decision of the Apex Court, though this matter is listed today for admission, it is heard for final disposal.

This appeal is by the claimant in the claim petition before the Employees Compensation Commissioner, Bidar.

The grievance of the appellant-claimant is that the Commissioner has directed the payment of compensation determined with interest at 12% p.a. from the date of expiry of 30 days of the date of the award instead of directing payment of interest upon the expiry of one month from the date of the accident.

In the case of The Oriental Insurance Company Ltd. Vs. Siby George and Others, the Apex Court has considered the question as to when does the payment of compensation under the Workmen''s Compensation Act, 1923 (now titled as Employees Compensation Act, 1923) becomes due and consequently what is the point in time, from which interest would be payable on the amount of compensation as provided u/s 4A(3) of the Act.

The said question came up for consideration in the light of the two earlier decisions in the case of National Insurance Co. Ltd. Vs. Mubasir Ahmed and Another, and Oriental Insurance Co. Ltd. Vs. Mohd. Nasir and Another, in which two Judges Bench had held that the compensation under the Act would fall due only after the adjudication by the Commissioner and therefore, the interest is payable upon the expiry of 30 days of the adjudication. In Siby George case referred to supra the Apex Court has referred to a Four Judge Bench decision in the case of Pratap Narain Singh Deo Vs. Srinivas Sabata and Another, , wherein it has been held that the employer becomes liable to pay the compensation as soon as the personal injury was caused to the workman by the accident, and therefore, it is futile to contend that the compensation did not fall due until after the Commissioner''s order u/s 19 of the Act.

In the light of the language of Section 19 of the Act, which provides that if any question arises in any proceeding under the Act as to the liability of any person to pay compensation or as to the amount or duration of the compensation, it shall, in default of agreement be settled by the Commissioner, the Apex Court in Pratap Narayan Singh Deo''s case has further held that there is nothing to justify the argument that the employers liability to pay compensation u/s 3 of the Act in respect of the injury was suspended until after the settlement contemplated by Section 19 of the Act and therefore, the appellant-insurer was thus liable to pay compensation as soon as the aforesaid personal injury was caused. The Apex court in Siby George case has held that in the light of the decision in Pratap Narain Singh Deo''s case, it is not open to contend that the payment of compensation would fall due only after the Commissioner''s order or with reference to the date on which the claim application was made. Therefore, it is held that the decisions in the case of Mubasir Ahmed and Mohd. Nasir (supra) insofar as they took a contrary view to the earlier decision in Pratap Narain Singh Deo, do not express the correct view and do not make binding precedents. In the light of the aforesaid law laid down by the Apex Court, the award of the Commissioner directing payment of interest from the date of expiry of 30 days of the award is contrary to law. On the other hand, the interest is payable upon the expiry of 30 days from the date of accident. It is submitted by the learned counsel for the insurer that the award amount has already been deposited before the Commissioner. In this view of the matter, the appeal is allowed. The direction as to payment of interest on the compensation amount from the date of expiry of 30 days of the award is modified and the interest is directed to be paid at 12% p.a. up to the date of the actual deposit from the date of expiry of 30 days of the accident.