High Court Of Calcutta
BABOO LALL JAIN, S. NARAYAN
SMT.SARIDA BIBI - Appellant
Versus
AMAR PRASAD GAGARI - Respondent
F. M. A. 1114 Of 1992
Decided On : 12/06/1995
WORKMEN'S COMPENSATION - LUMP SUM PAYMENT - INTEREST - PENALTY - DEFAULT - SECTION 4-A OF THE WORKMEN'S COMPENSATION ACT, 1923 - INTERPRETATION - SCOPE AND APPLICABILITY - JURISDICTION OF THE COURT - LIABILITY OF THE INSURER - DELAY IN PAYMENT - FACTORS TO BE CONSIDERED - CALCULATION OF COMPENSATION - RELEVANT PROVISIONS - SECTION 4 OF THE WORKMEN'S COMPENSATION ACT, 1923 - INTERPRETATION - RELEVANCE OF ADMITTED LIABILITY - TIME LIMIT FOR PAYMENT - CONSEQUENCES OF DEFAULT - POWER OF THE COURT TO AWARD INTEREST AND PENALTY - PROCEDURE - SPOKEN ORDER - NECESSITY.
Fact of the Case:
The deceased, a driver employed by the respondents, died in a road accident while driving a lorry owned by the respondents. The claimant, the deceased's wife, filed a claim for compensation under the Workmen's Compensation Act, 1923. The Commissioner for Workmen's Compensation awarded a lump sum of Rs. 43,382 as compensation, but the claimant appealed, claiming that the compensation should have been higher and that interest and penalty should have been awarded for the delay in payment.
Finding of the Court:
The court held that the monthly wage of the deceased should have been accepted as Rs. 1000/- instead of Rs. 500/- as found by the Commissioner. The court also held that the claimant was entitled to interest at the rate of 6% per annum on the compensation amount from the date of the accident to realization, and a penalty of 25% of the compensation amount, which came to Rs. 21,500/-.
Issues: 1. Whether the monthly wage of the deceased was Rs. 500/- or Rs. 1000/-? 2. Whether the claimant was entitled to interest and penalty for the delay in payment of compensation?
Ratio Decidendi: 1. The court held that the oral evidence of the claimant that the monthly salary of the deceased was Rs. 1000/- was more reliable than the written statements of the respondents, which claimed that the salary was only Rs. 500/-. The court also noted that the respondents had failed to produce any books of account to support their claim. 2. The court held that Section 4-A of the Workmen's Compensation Act, 1923, which provides for payment of interest and penalty for default in payment of compensation, is mandatory in nature and that the court has the jurisdiction to award interest and penalty even if the employer and the insurer contest the claim for compensation.
Final Decision: The appeal was allowed. The claimant was awarded a lump sum of Rs. 86,764/- as compensation, along with interest at the rate of 6% per annum from the date of the accident to realization, and a penalty of Rs. 21,500/-. The respondents were directed to pay the balance amount of the compensation, after deducting the amount already deposited by the insurer, within two months.
( 1 ) THIS is an appeal by the Appellant/claim against the judgment award dated May 14, 1991 of the Court Commissioner for Workmen's Compensation, W. B. , in claim case No. 566 of 1988. The award was passed for Rs. 43,382 as against a claim for Rs. 86,764 The claimant, being aggrieved of the quantum of compensation as per the award, has come up with the present appeal.
( 2 ) ONE Majaffer Ali Shek (Deceased, husband of the Claimant) was a driver of motor lorry. , bearing Registration No. WBK-4390, under the Employment of the O. Ps. /respondents first party, who were the owner of the lorry. The O. Ps. /respondents first party were members of a partnership firm; and the lorry was used for running the business of the firm. The lorry had the coverage of an Insurance Policy under the insurer. New India Assurance Co. Ltd. i. e. O. P. / Respondent No. 2. It so happened that on January 7, 1988 at about 8. 00 a. m. the aforesaid lorry, while being driven by the Claimant's husband, met a road accident near New Nabeen Palli, Diamond Harbour Road on being collided with a delux bus bearing No. WBS 5263. The Claimant's husband sustained some serious injuries in the accident and, ultimately, died. Thereupon, a claim for compensation was made before the Commissioner for Workmen's Compensation, Calcutta. It may be mentioned that the claimant asserted that her deceased husband was aged 35 years at the time of the accident and also that his monthly wages was amounting to Rs. 1,000/ i. e. @ Rs. 35 per day.
( 3 ) BOTH the O. Ps. /respondents parties contended the claim by filing separate written statements while contending inter-alia that the age of the deceased at the time of death was 35 years and his monthly salary was to the tune of only Rs. 500/ -. It was further contended that the alleged accident was caused due to negligence of the other vehicle involved i. e. the bus No. WBS- 5263 belonging to Calcutta State Transport Bus.
( 4 ) THE Learned Court below i. e. the Commissioner for Workmen's Compensation, on appreciation of the evidence on the record, arrived at a conclusion that the deceased was aged 25 years at the time of the death (as asserted by the claimant) and further that the monthly wage of the deceased at the time of the accident was to the tune of Rs. 500/-per month (as asserted on behalf of the O. Ps. / Respondents ). Thus, on the basis of the assessment of the age and the monthly wage, the amount of compensation was reckoned at a sum of Rs. 43,382 with the help of the Schedule-IV referred to in Explanation I of the provision Under Section 4 of the Workmen's Compensation Act, 1923.
( 5 ) BE it recorded at the very outset that the claimant's husband was admittedly under employment of the O. Ps/respondents first parry as a driver of the lorry belonging to them and also that he sustained injuries in an accident, while driving the said lorry as a result of which he died. The relevant First Information Report (Ext. 1) and Post Mortem Examination Report (Ext. 2) were available on the record. What has been disputed is only with regard to the findings of the Court below, with respect to the amount of monthly wage, which was being paid to the deceased at the time of the accident. As against the version of the claimant of his monthly wages being Rs. 1000/-, it was contended on behalf of the respondents in their respective written statements that it was only Rupees 500/ -. It may be mentioned here that the respondents had also challenged, the age of the deceased but the finding of the Court below on the point of age as per the School Leaving Certificate (Ex-3) produced on the record, has not been disputed any more and, accordingly, it has got to be accepted as 25 years.
( 6 ) SO far as the monthly wage of the deceased was concerned, by the employers and the other by the Insurer that the salary of the deceased was Rs. 500/- per month in support of this contention one of the two employers, namely, Amal Prasad (O. P. / Resp
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