JAMMU & KASHMIR HIGH COURT
Mansoor Ahmad Mir, J.
Geeta Devi & Ors. -Appellant
Versus
Som Nath & Anr. -Resopndent
CIMA No. 165/2010
Decided On : 12-12-2012
Interest Payable - Compensation Claim - Workmen's Compensation Act 1923, Section 4 and 4A - The court discussed the conflicting views on the payment of interest to claimants and held that interest is payable from the date of causing of personal injury, based on the interpretation of the Workmen's Compensation Act 1923, Section 4 and 4A.
Fact of the Case:
The appeal challenged an award passed by the Assistant Labour Commissioner, Jammu, awarding compensation to claimants in a claim petition.
Finding of the Court:
The court found that the claimants were entitled to interest from the date of causing of personal injury, not from the date of passing of the award.
Issues: The main issue was the determination of the date from which interest is payable to the claimants.
Ratio Decidendi: The court relied on the interpretation of the Workmen's Compensation Act 1923, Section 4 and 4A, and the conflicting views in previous judgments to decide that interest is payable from the date of causing of personal injury.
Final Decision: The appeal was allowed, and the claimants were held entitled to interest from the date of causing of personal injury, with interest at 6% per annum.
2. The short controversy in the appeal at hand is that as to whether interest is payable to the claimants from the date of personal injury or from the date of determination of compensation amount or from any date interior to one month of the date of Commissioner's award.
3. The apex Court has already held in Pratap Narain Singh Deo v. Shrinivas Sabata and anr. reported in AIR 1976 SC 222, that interest is payable to the claimant from the date personal injury is caused. However, in National Insurance Company v. Mubashir Ahmad and anr. reported in AIR 2007 SC 1298 and Oriental Insurance Company Ltd. v. Mohd. Nasir and another, reported in (2009) 6 SCC 280, the apex court took a contrary view and held that interest is payable from the date of passing of the award.
4. The said judgements having been passed by two Judges Bench, the apex Court noticing the judgements aforementioned held in Oriental Insurance Co. Ltd. v. Siby George and Others, reported in AIR 2012 SC 3144 : [2012] SCCR 757, that the judgement passed by the apex Court reported in AIR 1978 SC 222 being by a larger Bench holds the field. Accordingly, it was held that a claimant would be entitled to the interest from the date personal injury is caused to him. It would be profitable to reproduce the paragraphs 9, 10, 11 and 12 of the judgement, which read as under:
"9. The matter once again came up before the Court when by amendments introduced in the Act by Act No. 30 of 1995 the amount of compensation and the rate of interest were increased with effect from 15.9.1995. The question arose whether the increased amount of compensation and the rate of interest would apply also to cases in which the accident took place before 15.9.1995. A three Judge Bench of the Court in Kerala State Electricity Board v. Valsala K., AIR 1999 SC 3502 answered the question in the negative holding, on the authority of Pratap Narain Singh Deo, that the payment of compensation fell due on the date of the accident. In paragraphs 1, 2, and 3 of the decision the Court observed as follows:
'1. The neat question involved in these special leave petitions is whether the amendment of Ss.4 and 4A of the Workmen's Compensation Act 1923, made by Act No. 30 of 1995 with effect from 15-9-1995, enhancing the amount of compensation and rate of interest, would be attracted to cases where the claims in respect of death or permanent disablement resulting from an accident caused during the course of employment, took place prior to 15-9-1995?
2. Various High Courts in the country, while dealing with the claim for compensation under the Workmen's Compensation Act have uniformly taken the view that the relevant date for determining the rights and liabil#31;ities of the parties is the date of the accident.
3. A four Judge Bench of this Court in Pratap Narain Singh Deo v. Srinivas Sabata, (1976) 1 SCC 289: (AIR 1976 SC 222:) speaking through Singhal, J. has held that an employer becomes liable to pay compensation as soon as the personal injury is caused to the workmen by the accident which arose out of and in the course of employment. Thus, the relevant date for determination of the rate of compensation is the date of the accident and not the date of adjudication of the claim/
10. The Court then referred to a Full Bench decision of the Kerala High Court in United India Insurance Co. Ltd. v. Alavi, 1998(1) Ker. L.T. 951 (FB), and approved it in so far as it followed the decision in Pratap Narain Singh Deo.
11. The decisions in Pratap Narain Singh Deo was by a four Judge Bench and in Valsala by a three Judge Bench of this Court. Both the decisions were, thus, fully binding on the Court in Mubasir Ahmed
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