Workmens Compensation Act is asocial security legislation and its provisions ought to receive a liberal interpretation.

Aggrieved against the award of interest from the date of application and not from the date on which the compensation amount "fell due", the parents of deceased workman Ramesh have filed this appeal.

2. Factual background in nutshell are as follows: -

Respondents 1 and 2 entered into contract with respondents 3 and 4 to construct a building at SIPCOT premises situated at Gummidipoondi, Tiruvallur District. The deceased Ramesh was employed under respondents 1 and 2. Second appellant, father of the deceased Ramesh, had also worked as watchman with the respondents 1 and 2 for about one year prior to the accident. On 12.01.1999, while Ramesh was at work at SIPCOT premises, he met with an accident while loading cement bags and barrels in a tractor. In the said accident, Ramesh sustained internal injuries and he died on his way to hospital. A case was registered in Cr.No.9/1999. Respondents 1 and 2 had taken insurance policy for the said work with respondents 5 and 6. As the death of Ramesh was during the course of employment, appellants prayed for compensation of Rs.3,00,000/-.

3. Refuting the claim, respondents 1 and 2 denied employment of the deceased Ramesh. According to the respondents 1 and 2, only the second appellant worked as a watchman under them and left the job on his own from 13.01.1999 and deceased Ramesh met with an accident somewhere and succumbed to the injuries. Since Ramesh was not employed under the respondents 1 and 2, they are not liable to pay any compensation. The Insurance Company also resisted the claim.

4. Before the Tribunal/Commissioner for Workmens Compensation, second appellant examined himself as PW-1. Exs.A-1 to A-5 were marked. Onbehalf of the respondents, RW-1 was examined and Exs.R-1 to R-4 were marked. In consideration of oral and documentary evidence, the Tribunal held that accident and death arose out of and in course of employment and ordered compensation of Rs.1,25,000/- with interest @ 12% p.a. from the date of application.

5. Aggrieved against the award of interest from the date of application, and not from the date when it "fell due", appellants have preferred this appeal. The only ground raised is that Commissioner for Workmens Compensation ought to have awarded interest @ 12% from the date of accident under Section 4-A(3) of Workmens Compensation Act.

6. The learned Counsel for the appellants contended that interest would accrue thirty days after the accident and not from the date of application or quantification of compensation. The learned Counsel placed reliance upon the following Judgments 1998 ACJ page 1 (SC), 1976 ACJ 141 (SC), 1997 LAB Insurance Company 891, 1995 LAB Insurance Company 677, 2000(1) ACC 125.

7. Placing reliance upon 2007 ACJ 845 = 2007 (1) TN MAC 214 (SC) [National Insurance Co. Ltd. v. Mubasir Ahmed and another], the learned Counsel for the respondents has submitted that the question of compensation becoming due does not arise on the date of accident and the compensation becomes due on the basis of adjudication of the claim made and therefore, interest is payable only from the date of adjudication under Section 4-A(3).

8. The question raised revolves on the point as to what is the meaning to be ascribed to the expression "fell due", occurring in Sec.4-A(3) of W.C.Act. The question for determination is as to when the compensation may be said to fall due.

9. The amended section 4-A(3) reads as under :-

"4-A(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 –

.(a) direct that the employer shall in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled Bank as may be specified by the Central Government by notification in the Official Gazette, on the amount due; and

.(b) if, in his opinion, there is no justification