Interest for compensation under the Employees Compensation Act accrues 30 days after the date of the accident, as established by the court's interpretation of Section 4-A and relevant legal precedents.

In both these appeals, a common question of law has arisen as to what is the actual date for accrual of interest on the compensation arrived at under the Employees Compensation Act, whether it falls due after thirty days from the date of accident or only after thirty days from the date of determination/adjudication of the compensation/claim?

2. Heard the learned counsel for the parties.

3. The appellant in C.M.A.No.35 of 2014, Mr.A.Ramanathan, aged about 30 years, was engaged by the first respondent as Driver of the Swaraj Mazda lorry bearing Registration No.TN 21 Q 8852 and while he was on duty on 23.11.2006, the said vehicle met with an accident near Paramangani, Maduvangari ECR Road, as a result he sustained grievous multiple injuries and fractures all over his body. Therefore he filed the claim petition before the Deputy Commissioner of Labour-II, Chennai in E.C.No.001 of 2007 claiming a compensation of Rs.5,00,000/- on the ground that the accident occurred during the course of his employment. The Deputy Commissioner of Labour-II, Chennai passed an award on 12.1.2009 directing the second respondent Insurance company, being the insurer of the Swaraj Mazda lorry bearing Registration No.TN 21 Q 8852 owned by the first respondent, to deposit the compensation of Rs.2,15,352/- on his file within a period of thirty days from the date of receipt of a copy of the award, failing which the second respondent is liable to pay simple interest at the rate of 12% per annum on the compensation amount from the date of accident till the date of deposit.

4. The appellant in C.M.A.No.128 of 2014, Mr.T.Palanivel, aged about 22 years, was engaged by the first respondent as Driver of the lorry bearing Registration No.TN 05 T 4852 and while he was on duty on 12.12.2007, the said vehicle met with an accident near Madurantakam, Janakipuram, Kanchipuram District, as a result he sustained grievous multiple injuries and fractures all over his body. Therefore he filed the claim petition before the Deputy Commissioner of Labour-II, Chennai in E.C.No.75 of 2008 claiming a compensation of Rs.5,00,000/- on the ground that the accident occurred during the course of his employment. The Deputy Commissioner of Labour-II, Chennai passed an award on 3.2.2010 directing the second respondent Insurance company, being the insurer of the lorry bearing Registration No.TN 05 T 4852 owned by the first respondent, to deposit the compensation of Rs.2,39,080/- on his file within a period of thirty days from the date of receipt of a copy of the award, failing which the second respondent is liable to pay simple interest at the rate of 12% per annum on the compensation amount from the date of accident till the date of deposit.

5. Be that as it may, my effort has become easier in view of the two decisions, one decided by the Apex Court in the case of Pratap Narain Singh Deo v. Srinivas Sabata and another, (1976) 1 SCC 289 and another decided by the Hon'ble Division Bench of this Court in the case of N.Ganesan v. Thilagavathi and others, 2010 (2) TN MAC 80 (DB). The Larger Bench of the Apex Court, way back in the year 1976, has held that the employer became liable to pay the compensation as soon as the personal injury was caused to the workman by the accident which admittedly arose out of and in the course of the employment. Following the aforesaid Larger Bench decision of the Apex Court in Pratap Narain Singh Deo's case (cited supra), a Hon'ble Division Bench of this Court in the case of N.Ganesan v. Thilagavathi and others, 2010 (2) TN MAC 80, has held as follows:-

“20. The Hon’ble Supreme Court of India in the decision reported in Pratap Narain Singh Deo’s case, 1976 (1) SCC 829 (Four Judges Bench), has specifically formulated an issue and held that “The employer therefore became liable to pay the compensation as soon as the aforesaid personal injury was caused to the workman by the accident which admittedly arose out of and in the course of the employment. It is therefo