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2008 Supreme(Guj) 161

GLR 2008 (3) 2004
HONOURABLE MR.JUSTICE M.R. SHAH
NATIONAL INSURANCE COMPANY - Appellant(s)
Versus
JAYASHREEBEN NANDULAL NERKAR (PATIL) & 3 - Defendant(s)
First Appeal No. 4717 of 2006 and 1044 of 2007
Decided on: 06/05/2008

Advocates appeared:
MR DAKSHESH MEHTA for Appellant in F.A. No.4717 of 2006,
MR HM THAKKAR for Appellant in F.A. No.1044 of 2007,
MR MTM HAKIM for Defendant(s) : 1 - 4.

Headnote:

Workmen Compensation Act - Section 10 - Compensation - First Appeal is by the appellant herein - original respondent No.2 - National Insurance Company, challenging the judgement and order passed by the Commissioner for Workmen Compensation, in so far as directing the appellant - Insurance Company to pay an amount towards the Workmen Compensation with interest at the rate of 12% per annum from the date of accident till realisation - Held, For the reasons stated hereinabove and the binding decision of the Honble Supreme Court in the case it has to be held that the starting point for payment of compensation in the Workmen’s Compensation Act would be the date of accident and not from the date of adjudication of the claim and therefore, the liability to pay the interest and penalty would arise from the date of accident and the interest on the amount of compensation as required to be paid under sec.4-A(3)(a) of the Act, is required to be paid on completion of one month from the date of accident and not from the date of adjudication - Now so far as the other submissions on behalf of the owner in First Appeal such as, there was no relationship of employer and employee and/or accident has not occurred during the course of employment etc. are concerned, the same are questions of facts and on appreciation of evidence the learned Commissioner for Workmen Compensation has held against the owner and the said finding is not required to be considered, dealt with and/or interfered with by this Court in an appeal under sec.30 of the Workmen’s Compensation Act - Appeal dismissed. (Para 47, 48)

JUDGMENT

1. As common question of law arises in both these appeals, they are being disposed of by this common judgement and order.

2. First Appeal No.4717 of 2006 is by the appellant herein - original respondent No.2 - National Insurance Company, challenging the judgement and order dtd.20/1/2006 passed by the Commissioner for Workmen Compensation, Vadodara in Workmen Compensation Case No.67 of 2001 in so far as directing the appellant - Insurance Company to pay an amount of Rs.4,27,140 towards the Workmen Compensation with interest at the rate of 12% per annum from the date of accident till realisation.

3. First Appeal No.1044 of 2007 is by the appellant herein - original respondent (employer) challenging the judgement and order dtd.25/9/2006 passed by the learned Commissioner for Workmen Compensation, Bharuch in Workmen Compensation Application No.63 of 1994 in so far as directing the appellant to pay an amount of Rs.67,139 towards workmen compensation with 50% penalty with interest at the rate of 6% per annum from the date of accident till realisation.

4. In both these appeals, following short but interesting question of law arises for determination of this Court:-

âSWhether the claimant/workman, under the Workmen Compensation Act, 1923, is entitled to the interest on the Workmen Compensation from the date of accident or from the date of judgement and order passed by the learned Commissioner for Workmen Compensation?

5. In First Appeal No.4717 of 2006, accident took place on 29/5/2001 in which workman named Nandulal Tulsiram Nelkar (Patil) â husband of the original applicant No.1, father of the original applicant No.2 and son of the original applicant No.3, who was serving as Tanker Driver, died. A notice under sec.10 of the Workmen Compensation Act (hereinafter shall be referred as âSthe Actâý for short) was served upon the original respondents on 16/8/2001 for compensation. However, as the workmen compensation was not paid either by the Insurance Company or by the original owner/employer, the respondent Nos.1 to 3 herein â original claimant Nos.1 to 3 filed Workmen Compensation Case No.67 of 2001 before the Commissioner for Workmen Compensation, Vadodara on 1/11/2001 claiming compensation of Rs.4,27,140=00 with interest at the rate of 12% per annum from the date of accident and penalty under the Act. The learned Commissioner for Workmen Compensation, Vadodara by the impugned judgement and order dtd.20/1/2006 directed both the original respondents to pay an amount of Rs.4,27,140 by way of compensation with interest at the rate of 12% per annum from the date of accident and further directed the respondent No.4 herein - original employer to pay an amount of Rs.2,13,570=00 towards penalty required to be paid under the Act. Being aggrieved by and dissatisfied with the impugned judgement and order dtd.20/1/2006 in so far as directing the appellant herein â Insurance Company to pay compensation with interest at the rate of Rs.12% per annum from the date of accident, the appellant - Insurance Company has preferred the present First Appeal No.4717 of 2006.

6. So far as First Appeal No.1044 of 2007 is concerned, the same is filed by the appellant herein â original employer challenging the judgement and order passed by the Commissioner for Workmen Compensation, Bharuch in Workmen Compensation Application No.63 of 1994. The said application was filed by the heirs of workmen â Somabhai Panchiyabhai Vasava, contending inter-alia that while on duty on 29/9/1994 in an accident Somabhai died and the said claim application was filed claiming compensation of Rs.67,139.70 ps. with penalty and interest at the rate of 6% per annum from the date of accident. The Commissioner for Workmen Compensation by the impugned judgement and order dtd.25/9/2006 allowed the said claim application directing the appellant â original respondent to pay an amount of Rs.67,139 towards compensation along with penalty of Rs.33,569=00 with interest at the rate of 6%






















































































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