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2026 Supreme(Jhk) 654
IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
Smt. Sudama Devi, wife of late Laxman Mandal - Appellant
Versus
Amjad Nabib Khan, son of Ghulam Muddin – Respondent
M.A. No. 81 of 2015
Decided On : 23-07-2026
Important Points
Subject
Labour Law - Employee Compensation
Act Referred
Headnote
For the Appellant :Mr. Arvind Kumar Lall, Advocate
For the Insurance Company :Mr. Ashutosh Anand, Advocate
| Table of Content |
|---|
| 1. factual background of the fatal accident and the initial compensation award. (Para 1 , 2 , 3) |
| 2. contention regarding penalty, interest, and insurance liability. (Para 4 , 5) |
| 3. interest on compensation is payable from the date of the accident. (Para 6 , 7) |
| 4. statutory requirement for penalty and interest upon employer's default under section 4a. (Para 8 , 9 , 10 , 11) |
| 5. entitlement to penalty and funeral expenses under beneficial legislation. (Para 12 , 13) |
| 6. modification of the award to include interest, penalty, and funeral expenses. (Para 14 , 15 , 16) |
JUDGMENT :
SANJAY KUMAR DWIVEDI, J.
1. Heard Mr. Arvind Kumar Lall, learned counsel for the appellant and Mr. Ashutosh Anand learned counsel for the Insurance Company.
2. This appeal has been preferred under Section 30(1) (a) of the Employee’s Compensation Act, 1923 for enhancement of the awarded amount passed in W.C. Case No. 22 of 2013 by Award dated 31.10.2014 by the learned Presiding Officer, Labour Court, Deoghar.
3. Mr. Arvind Kumar Lall, learned counsel for the appellant submits that on 26.05.2012 the deceased/Laxman Mandal was going to unload the stone chips at Bengabad from the truck bearing Registration No. GJ-5AT-0629 on the instruction and direction of his employer- Amjad Nabib Khan and the said truck turned turtle due to rash and negligent driving of his driver Anwar Khan due to which said Laxman Mandal sustain serious injuries on his head and his both legs were broken. The said Laxman Mandal was brought Navjeevan Nursing Home at Giridih and during course of treatment he died. The F.I.R being Bengabad P.S. Case No. 62 of 2012 was registered for the same and the truck in question was seized. Inquest report of the dead body of Laxman Mandal was conducted and after investigation, Bengabad Police submitted chargesheet against the driver Anwar Khan of the offending vehicle. He submits that the claimant is dependent of the deceased employee being widow has filed W.C. Case No. 22 of 2013 before the Presiding Officer, Labour Court, Deoghar claiming that deceased-Laxman Mandal was getting monthly wages of Rs. 6,000/- per month plus Rs. 50/- per day as khuraki from the employer. The deceased was aged about 48 years at the time of accident and compensation was claimed as Rs. 5,00,000/- with interest at the rate of 12 % per annum since 26.06.2012. The said offending truck was insured with Sriram General Insurance Company Limited-O.P. Nos. 2 and 3
4. Mr. Arvind Kumar Lall, learned counsel for the appellant submits that compensation of Rs. 5,83,270/- was allowed by the learned Presiding Officer, Labour Court on contest of O.P. Nos. 2 and 3 and ex-parte against O.P. No. 1 and direction was made to pay the said compensation amount within 30 days from that order. He next submits that the learned Labour Court while passing the Award has not passed any order of penalty under section 4(A) of the Employees Compensation Act, 1923 which is mandatory provision. He further submits that from which date interest is to be paid, has not been disclosed. Lastly, he submits that funeral expenses have not been provided to the claimant. He submits that all these are mandatory which is required to be passed in Award, which is missing in the Award passed by the learned Presiding Officer, Labour Court. He relied in the case of “ Jugal Kishor Ray Vs. Ashok Prasad Yadav and Another ” (Special Leave Petition (Civil) No. 20520 of 2024) and submits that the said Award may kindly be modified.
5. Mr. Ashutosh Anand, learned counsel for the Insurance Company submits that Insurance Company is not liable to pay penalty and interest. He relied in the case of “L.R. Ferro Alloys Ltd. Vs. Mahavir Mahto and Another ” reported in (2002) 9 SCC 450 and submits that the appeal may kindly be dismissed.
6. It is an admitted position that accident took place on 26.05.2012 pursuant to that deceased/Laxman Mandal died and later on F.I.R being Bengabad P.S. Case No. 62 of 2012 was registered in which chargesheet h
