High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE K. VENKATARAMAN
Velu Ammal & Others
Versus
Krishna Agencies & Another
C.M.A. No.234 of 2001
Decided On : 17-04-2007
The applicants in W.C.No.125 of 1997 before the Commissioner of Workmens Compensation No.II, Chennai-6 are the appellants before this Court.
.2. The case put forth by them before the said Authority was that one Anbazhagan, husband of the first appellant and father of the other appellants, died in an accident arising out of and in the course of his employment with the first respondent on 18. 1993. Their further case before the said Authority was that the deceased Anbazhagan was receiving a sum of Rs.80/- as daily wages and Rs.10/- as daily batta. On 18. 1993, when he was working as Lorry Driver in the lorry bearing registration No.AP-26-T-4656 owned by the first respondent herein died due to electrocution during the course of employment at the first respondents shed. The second respondent being the insurer of the said vehicle has been added in the said proceedings. The said proceedings has been initiated by them for payment of compensation for the death of the said Anbazhagan in the said accident arising out of and in the course of his employment.
3. The first respondent filed a counter stating that if any orders are passed for payment of compensation, that amount should be paid by the second respondent-Insurance Company. The second respondent has filed the counter stating that it does not admit the manner of accident and the employment of the deceased with the first respondent herein, as driver. It has also been averred in the said counter that the appellants have to establish that the deceased died in the course of employment as driver under the first respondent.
.4. After considering the evidence adduced on the side of the appellants as well as the respondents herein, the Authority referred to above held that the deceased died due to electrocution during the course of his employment with the first respondent herein. Further, the Authority has ordered compensation of a sum of Rs.78,824/- and the said amount has been directed to be deposited by the second respondent herein within one month from date of receipt of the order failing which interest at the rate of 6% shall be recovered from date of filing of the claim application. The applicants/appellants preferred the present appeal only on the ground that the Authority ought to have awarded interest at the rate of 12% from the date of the accident without imposing any condition which will give loop holes to the respondents to evade payment of interest for the amount awarded. In fact, when the appeal was entertained, the following substantial question of law has been framed:-
"Whether the Commissioner for Workmens Compensation ought not to have awarded interest at the rate of 12% per annum from the date of accident when the award was passed on merit?
5. The learned counsel appearing for the appellants contended that the Authority while awarding interest should have awarded interest at the rate of 12% from the date of accident and should not have directed the second respondent to deposit a sum of Rs.78,824/- within one month from the date of receipt of the order failing which it has to pay interest at the rate of 6% which will be recovered from the date of filing of the petition. In fact, the learned counsel appearing for the appellants contended that the appellants are entitled to the said award amount with interest at 12% from the date of the accident and the Authority should not have awarded interest only at 6% per annum if the amount awarded is not deposited within one month from the date of receipt of the order. According to the learned counsel, ordering interest at 6% only if the amount is not deposited within one month is totally erroneous. The learned counsel relied on the decision of the Division Bench of this Court reported in 2002 (4) C.T.C. 469 (THE ORIENTAL INSURANCE CO LTD v. KALIYA PILLAI) wherein it has been held as follows:
"As stated earlier, the Workmens Compensation Act, being a beneficial legislation, considering the object and scheme of the A
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