SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2003 Supreme(Jhk) 1184

Jharkhand High Court
Gurusharan Sharma,Amareshswar Sahay, JJ.
Branch Manager, New India Assurance Company Limited - Appellant
Versus
Ramakant Prasad - Respondent
M.A. 190 Of 1999(R)
Decided On : 22 September, 2003

Headnote:Workmen’s Compensation Act, 1923 – Section 30(a) – award of penal interest only challenged – penal interest granted only to ensure payment of award amount within a reasonable period – if the amount would have been deposited in time, there was no occasion to challenge the award of penal interest – appeal dismissed. (Para 2)

JUDGMENT

Gurusharan Sharma, J.

1. Heard. By impugned order and award dated 16th June, 1999, the Workmens Compensation Commissioner, Hazaribagh, assessed a sum of Rs. 1,68,210.00 to be paid as compensation under the Workmens Compensation Act, 1923, to the injured, Rama Kant Prasad, who sustained injury in course of his employment with Mr. Dayal Tourist Coach, College Road, Ramgarh. He was employed as driver on the tourist coach (BR-14 P-5574). On the aforesaid amount of compensation, interest (c) 12% per annum has also been granted from one month after the date of accident till the date of payment, The appellant-Insurance Company cannot have any objection to that on the ratio of the decision of the Apex Court in Ved Prakash Garg v. Premi Devi .

2. The Compensation Commissioner further directed that If the amount of compensation with interest is not paid by the insurer within 120 days, the interest would be payable at the rate of 18%, The appellant has, therefore, preferred the present appeal, under Section 30(1)(a) of the Act challenging the impugned judgment and award on merit. In our view, the penal interest @ 18% was granted only to ensure payment of the award amount within a reasonable period. Once the insurer decided not to prefer any appeal challenging the award in question on merit, there was no occasion not to deposit the award amount with 12% interest thereon, after the same became final, even for four months from the date of award. The time granted by the Compensation Commissioner of 120 days to deposit the compensation amount was more than enough. From the date of award itself the insurer was very well aware that if it failed to deposit the award amount within four months, the rate of interest would increase from 12% to 18%, but he knowingly did not deposit the same within the time allowed. There was no occasion to file the present appeal and challenge the said part of the judgment and award, if the amount was paid/deposited within four months. We are, therefore, not inclined to interfere with the impugned order and award. This appeal is dismissed.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top