High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE N. PAUL VASANTHAKUMAR
H. Dawood & Another
Versus
L. Thangarajan & Others
C.M.A.No.1899 of 2000 and C.M.A.No.710 of 2003
Decided On : 03-08-2007
These appeals are filed against the orders of the Deputy Commissioner of Labour-II, Chennai, in W.C.No.26 of 1999 on 19. 1999 and in W.C.No.248 of 1999 on 5. 2002 respectively.
2. The Claimants in the respective case filed the appeals only in respect of denial of interest for the amount of compensation awarded. In C.M.A.No.1899 of 2000 (W.C.No.26 of 1999), the authority passed an award of Rs.95,744/- and in C.M.A.No.710 of 2003 (W.C.No.248 of 1999) the award amount is Rs.2,09,920/-.
3. In both these appeals, the common substantial question of law raised by the appellants/claimants is that the authority failed to award interest from the date of accident as against the statutory provision contained in section 4A of the Workmen Compensation Act, 1923.
4. The learned counsel appearing for the respective appellants argued that the claim of the appellants having been upheld and the compensation having been awarded, interest should have been ordered from the date of the claim petition. The learned counsels also cited the following decisions in support of their contention:
.(a) 1976-I LLJ 235 (Pratap Narain Singh Deo v. Sriniwas Sabata and another)
.(b) AIR 1997 SC 3854 (Ved Prakash Garg v. Premi Devi and others)
.(c) (1998) 9 SCC 134 (Maghar Singh v. Jashwant Singh)
.(d) Division Bench decision of this Court reported in 2002 (4) CTC 469
(The Oriental Insurance Co. Ltd., Pondicherry v. Kaliya Pillai and 2 others)
5. The learned counsel appearing for the respondent in C.M.A.No.1899 of 2000 submitted that the appellants are not entitled to raise the issue of payment of interest from the date of the claim petition as the matter in issue is already settled in the decision of the Supreme Court reported in (2007) 2 SCC 349 (National Insurance Co Ltd v. Mubasir Ahmed and another) and the said decision is binding on this Court.
6. I have considered the rival submissions made by the learned counsel appearing for the respective appellants as well as respondents.
7. The point in issue is whether the appellants are entitled to claim interest from the date of the claim petition or only after expiry of 30 days from the date of determination of compensation amount.
8. In (2007) 2 SCC 349 (National Insurance Co Ltd v. Mubasir Ahmed and another) the Apex Court considered similar issue and in paragraph 9 held thus,
"9. Interest is payable under Section 4-A(3) if there is default in paying the compensation due under this Act within one month from the date it fell due. The question of liability under Section 4-A was dealt with by this Court in Maghar Singh v. Jashwant Singh ((1998) 9 SCC 134). By amending Act 30 of 1995, Section 4-A of the Act was amended, inter alia, fixing the minimum rate of interest to be simple interest @ 12%. In the instant case, the accident took place after the amendment and, therefore, the rate of 12% as fixed by the High Court cannot be faulted. But the period as fixed by it is wrong. The starting point is on completion of one month from the date on which it fell due. Obviously it cannot be the date of accident. Since no indication is there as to when it becomes due, it has to be taken to be the date of adjudication of the claim. This appears to be so because Section 4-A(1) prescribes that compensation under Section 4 shall be paid as soon as it falls due. The compensation becomes due on the basis of adjudication of the claim made. The adjudication under Section 4 in some cases involves the assessment of loss of earning capacity by a qualified medical practitioner. Unless adjudication is done, question of compensation becoming due does not arise. The position becomes clearer on a reading of sub-section (2) of Section 4-A. It provides that provisional payment to the extent of admitted liability has to be made when employer does not accept the liability for compensation to the extent claimed. The crucial expression is “falls due”. Significantly, legislature has not used the expression “from the date of accid
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