JUDGMENT :

Heard learned counsel for the appellant and learned counsel for the respondent No.2. Inspite of valid service of notice none appears on behalf of respondent No.1

2. The present miscellaneous appeal has been preferred under Section 30 of the Employee’s Compensation Act, 1923 assailing the judgment/award dated 29.02.2020 passed in E.C. Case No.14 of 2016 by the court of Sri Rajendra Bahadur Pal, learned Presiding Officer, Labour Court-cum-Commissioner, Deoghar under Employee’s Compensation Act, 1923, whereby and whereunder learned court below has awarded amount of compensation without any interest which is mandatory under Section 4(A) of Workmen’s(Employee’s) Compensation Act, 1923.

3. Factual background of the case in a narrow campus is that one Lakhan Ray(deceased) was employed as driver of tractor bearing Reg. No.JH-17D-9017 attached with Trolley No. JH-11D-9018 owned by respondent No.1-Ashok Prasad Yadav. On 28.01.2009 while Lakhan Ray was employed as driver by the respondent No.1 for transportation of cement and iron rods loaded on trolley and in the course of employment, he met with an accident near Panchsalvey Forest area and died. In this connection, Tisri P.S. Case No.03 of 2009 was registered and after investigation charge-sheet was submitted, but no compensation amount was given to the legal heirs and dependents of the deceased by the employer within statutory time period. Hence, the case was instituted under the provision of Workmen’s Compensation Act, 1923 before the presiding officer labour court-cum-commissioner under the said Act.

The case of the appellant is that the age of deceased was 35 years and he was earning Rs.6,000/-per month salary along with Rs.50/-per day towards diet expenses. It is further alleged that Rs.8 lakhs was claimed as compensation and Rs.25,000/-for cremation along with interest @ 12 % per annum from the date of accident.

4. Learned trial court after taking evidence of the parties and fixing monthly income of deceased as per minimum wages rate at Rs.3336/-only per month due to non-production of any sufficient materials proving income of deceased @ Rs.6,000/-per month, and computed the amount of compensation in accordance with provision of Section 4 of Employee’s Compensation Act and arrived at net amount of compensation Rs.3,29,597/- (Three lakhs twenty nine thousand and five hundred ninety seven) which was awarded in favour of claimant without any direction for payment of interest as mandated under Section 4A of the said act which has been assailed in this appeal.

5. The sole substantial question of law has been formulated in this appeal as under:-

“Whether the Commissioner, Employee’s Compensation has committed perversity by not awarding any interest to the claimant on the amount of compensation awarded under of Employee’s Compensation Act (Workmen Compensation Act)?”

6. Learned counsel for the appellant has confined himself to the question of non-award of interest @ 12 % per annum along with substantial award amount which is in violation of mandatory provision of Section 4(A) of Workmen’s Compensation Act. Hence, apart from awarded amount, the appellant is entitled for simple interest @ 12 % per annum from the date of accident.

7. Per Contra-Learned counsel for the respondent No.2-United Insurance Company Limited has vehemently refuted the above arguments raised on behalf of the appellant but conceded that the respondent No.2-insurer is bound to indemnify the insured only to the extent of payment of principal award and can’t be saddled with liability to pay interest and penalty imposed due to fault of the insured.

Analysis and Decision

8. Now coming to the substantial question of law raised in this case as mentioned above, the interest part under the Employee’s Compensation Act 1923 is awarded under Section 4A(3) which runs as under:-

“4A(3) where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the commissioner shall :