IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venkata Jyothirmai Pratapa, J.
Oriental Insurance Co.Ltd. - Appellant
Versus
Vengalasetty Munemma - Respondent
C.M.A. No. 989 of 2011
Decided On : 16-02-2023
Workmen's Compensation Act - Compensation - Sec. 30 - Deceased workman involved in a fatal accident - Liability of the employer and insurer - Interest on compensation - Interpretation of Sec. 4A of the Workmen's Compensation Act 1923
Fact of the Case:
The case involved a deceased workman who died in a fatal accident while working as a lorry cleaner. The issue was regarding the liability of the employer and insurer to pay compensation to the deceased's family.
Finding of the Court:
The court found that both the employer and insurer were jointly and severally liable to pay compensation to the deceased's family. The court also held that the applicants were entitled to interest on the compensation amount from the date of the accident till the date of realization at the rate of 12% per annum.
Issues: The issues included determining the workman status of the deceased, his age at the time of the accident, his wages, the quantum of compensation, and the liability of the parties to pay compensation.
Ratio Decidendi: The court relied on legal precedents such as Saberabibi Yakubhai Shaikh v. National Insurance Co. Ltd and Ajaya Kumar Das and another vs. Divisional Manager and Another to interpret Sec. 4A of the Workmen's Compensation Act 1923 and establish the entitlement of interest on the compensation amount from the date of the accident.
Final Decision: The appeal was dismissed, and the court upheld the order of the Learned Commissioner, holding that the applicants were entitled to interest on the compensation amount from the date of the accident till the date of realization at the rate of 12% per annum.
JUDGMENT
VENKATA JYOTHIRMAI PRATAPA, J. - This Civil Miscellaneous Appeal is preferred under Sec. 30 of Workmen's Compensation Act, 1923 (in short 'The Act') against the impugned order dtd. 29/10/2008 in W.C. No.7 of 2007 on the file of the Commissioner for Workmen's Compensation and Deputy Commissioner of Labour, Tirupathi (hereinafter be referred to as "Commissioner").
2. The appellant herein was the Opposite Party No.2 and the respondents herein were the applicants and Opposite Party No.1 before the learned Commissioner. For the sake of convenience, the parties hereinafter will be referred to as arrayed before the learned Commissioner.
3. Case of the applicants in brief is that the deceased V.Venkata Ramana is the son of the first applicant and applicants 2 & 3 are the brothers of the deceased. He worked as lorry cleaner under the O.P.No.1 and on his instruction, on 26/10/2006 at 9.00 PM, he along with lorry driver Chandra Mouli, left from Rajampet with load of Banana to Tadipatri and when they reached near Palempalli petrol bunk bypass road, the driver of the lorry drove the vehicle in a high speed and dashed to the rear side of a stationed tipper. Both driver and cleaner died in the said accident.
4. Opposite Party Nos.1 and 2 admitted that the applicant was working under O.P.No.1 as cleaner and the O.P.No.2 i.e. Insurer alone is liable to pay compensation to the applicant. O.P.No.2 denied the employee employer relationship in between the deceased and Opposite Party No.1 and the compensation claimed by the applicants are excessive and hence requested for dismissal of the case.
5. Issues - Enquiry - Finding:
a. Basing on the rival pleadings of both sides, the learned Commissioner framed the following issues for adjudication;
i. Whether the deceased was a workman as per the provisions of workmen's compensation Act 1923 and he met with an accident arising out of and in the course of his employment resulting into death?
ii. What is the age of deceased at the time of accident ?
iii. What were the wages paid to the deceased at the time of accidental death ?
iv. What is the quantum of compensation payable to the applicants?
v. Who are liable to pay the compensation to the applicants?
b. During the course of enquiry, the 1st applicant/ mother of the deceased V.Munemma was examined as AW.1. Exs.A1 to A6 were the documents marked. On behalf of O.P.No.2, no evidence is adduced.
c. After hearing both the counsel and on appreciation of the evidence on record, the learned Commissioner concluded that both the Opposite Parties are jointly and severally liable to deposit an amount of Rs.3, 37, 202.00 as compensation besides stamp duty of Rs.674.00 along with interest at 12% p.a. from the date of accident till the date of payment of compensation or realisation by means of demand draft drawn in favour of the Commissioner within 30 days of receipt of the order, failing which, they have to pay penalty u/s.4(A)3 of the W.C. Act.
6. Grounds of Apeal:
Feeling aggrieved and dissatisfied by the order impugned, the Opposite Party No.2 preferred the present appeal on the following grounds;
i. The award of the Commissioner is illegal, contrary to law and facts, weight of evidence and probabilities of the case.
ii. The Commissioner erred in awarding interest @ 12% p.a. from the date of the accident will the actual payment or realization.
iii. The award of the Commissioner is unsustainable to the extent of awarding interest @ 12% p.a. from the date of the accident, which is contrary to the settled principles of law.
Substantial question of Law:
7. Heard. The only point raised in the appeal against the impugned order is Whether the Commissioner can grant interest @ 12% p.a. from the date of accident or not?
POINT
8. The law on this point is no more res-integra. In Saberabibi Yakubhai Shaikh v. National Insurance Co. Ltd, (2014) 2 SCC 298. where the matter was carried in Appeal to the Hon'ble Apex Court placing reliance on Oriental Insurance Company Limite
Oriental Insurance Company Limited versus Siby George and others [(2012) 12 SCC 540]
National Insurance Co. Ltd. v. Mubasir Ahmed [(2007) 2 SCC 349]
Oriental Insurance Co. Ltd. v. Mohd. Nasir [(2009) 6 SCC 280]
Pratap Narain Singh Deo v. Srinivas Sabata [(1976) 1 SCC 289]
Saberabibi Yakubhai Shaikh v. National Insurance Co. Ltd
Uttar Pradesh State Road Transport Corporation/Uttarakhand Transport Corporation v. Satnam Singh
Claimants entitled to interest at 12% from the date of the accident under the Workmen’s Compensation Act, ensuring fairness and adherence to beneficial legislation.
The main legal point established is the determination of liability under the Workmen’s Compensation Act based on the employment relationship and compliance with policy terms by the insurance company.
The main legal point established in the judgment is that the employer and the insurance company are jointly and severally liable to pay interest at 12% from the date of the accident till the date of ....
Compensation for work-related death must include interest from the date of the accident, as the employer's liability arises immediately upon the occurrence of the accident.
The entitlement of claimants to receive interest on the compensation amount from the date of the accident and the application of established principles relating to the payment of interest on money cl....
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