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SUPREME COURT OF INDIA
D. P Wadhwa, Sujata .V. Manohar
SHASHIKALABAI (SMT), APPELLANT
Versus
STATE OF MAHARASHTRA AND ANOTHER, RESPONDENTS.
Civil Appeal No. 2077 of 1998 (Arising out of SLP (C) No. 2962 of 1998),
decided on April 7, 1998.
Compensation - Fatal Accident - Interpretation of Circular
Fact of the Case:
The appellant's husband died from an electric shock, and the High Court awarded compensation based on a circular from the Maharashtra State Electricity Board. However, a new circular with increased compensation had come into force before the formal application was made, but the High Court did not consider it.
Finding of the Court:
The court modified the High Court's order and granted the appellant additional compensation based on the new circular, stating that the appellant should have been granted the benefit of the new circular as the case was not closed when it came into effect.
Issues: Interpretation of circular for compensation in fatal accident case
Ratio Decidendi: The court's decision was influenced by the interpretation of the new circular, which stated that cases not closed on the date of the circular coming into effect should be granted the benefit of the new compensation amount.
Final Decision: The appeal was allowed, and the appellant was granted additional compensation of Rs. 30,000 over and above the amount already awarded, to be paid within eight weeks with interest if not paid within the stipulated time.
ORDER
1. Leave granted.
2. In respect of the fatal accident of the appellants husband who came in contact with a live electric wire and died of shock, the High Court has given compensation of Rs. 30,000 on the basis of the circular of the Maharashtra State Electricity Board, Respondent 2 herein, dated 5-4-1979. Death occurred on 18-3-1991. However, there was correspondence between the appellant and the respondents from 1991 to 1994 and the actual formal application was made on 14-2-1994, by which time the new circular of 28-1-1993 had come into force. Under the new circular of 28-1-1993, the compensation amount has been increased from Rs. 30,000 to Rs 60,000. The circular also states that it shall come into force with immediate effect and the compensation cases already closed shall not be reopened. Since the present case was not closed on the date of the circular coming into effect, the appellant should have been granted the benefit of the new circular.
3. We, therefore, modify the order of the High Court by granting her additional compensation of Rs. 30,000 over and above what has been already awarded. The amount shall be paid within a period of eight weeks from today. If the full amount is not paid within a period of eight weeks from today, the amount will carry interest thereafter @ 12% p.a. However, on the amount of Rs. 30,000 granted by the High Court, if the amount has not been paid so far, Respondent 2 shall pay interest @ 12% p.a. from the date of the impugned order of the High Court.
4. The appeal is allowed accordingly.
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