Court No. - 7

Case :- FIRST APPEAL FROM ORDER No. - 1257 of 2015

Appellant :- Smt. Gyan Wati And 6 Others

Respondent :- S.B.I. General Insurance Co. Ltd. And Anr.

Counsel for Appellant :- Lal Chandra Sahu

Counsel for Respondent :- Saurabh Srivastava

Hon'ble Ajay Bhanot,J.

Heard Sri Lal Chandra Sahu, learned counsel for the

appellants and Sri Saurabh Srivastava, learned counsel

for the respondents.

This appeal arises out of an award dated 31.03.2015

passed by the Commissioner Employee's

Compensation/Deputy Labour Commissioner, Bareilly

Region, Bareilly in Case no. 78/E.C.A.-2014 (Smt.

Gyanwati Vs S.B.I. General Insurance Company

Limited and another) in proceedings taken out by the

appellant for grant of compensation on account of

death of her husband/workmen Jwala Prasad.

The tribunal in the impugned award passed by the

Commissioner has found that the deceased died of

injuries sustained in an accident occurring on

15.03.2014. The deceased was a driver in the employ

of respondent no. 2. The workmen, employer,

employee relationship has not been disputed.

Evidences in the record establish that the death

occurred during the course of the employment of the

deceased.

On the foot of the aforesaid finding the tribunal made

an award of Rs. 4,52,993 in favour of the appellants.

However the tribunal passed a conditional order in

regard to interest that in case the respondent/insurance

company fails to deposit the amount after a period of

30 days they shall be liable to pay interest @ 8%.

Sri Lal Chandra Sahu, learned counsel for the

appellants contends that the said condition for payment

of interest made by the tribunal is in the teeth of

Section 4-A of the Employee's Compensation Act,

1923. The following substantial question of law arises

for consideration:

"Whether the Workmen Compensation Commissioner

erred in law by granting interest to the appellant on the

condition that interest shall be payable merely upon

default of the company to deposit the awarded amount

within a period of 30 days from the date of award and

whether any consequential directions are liable to be

passed in this appeal?"

The interest to which the claimants are entitled is 12%

under Section 4-A of the Act. The interest is payable

one month from the dated of accident till the amount is

deposited. The narrative shall profit by reference to

judgment rendered by this Court in First Appeal

From Order No. 1585 of 2019 (Reeta Yadav and 3

others Vs National Insurance Co. Ltd and another)

wherein this Court held as under:-

"8. In this case the learned Commissioner has granted

interest for the death of a person if the amount is not

deposited within the stipulated time. Just because the

owner filed his reply, it cannot be said that the interest

should not be granted. Interest has to be granted at the

rate of 12% as per Section 4A of the Act. The view

taken by the Commissioner is bad in the eye of law

and is quashed and set aside. The interest shall be paid

one month after the date of accrual of the claim that is

one month after the death till the amount is deposited."

The narrative shall also benefit by reference to the

judgment of the Supreme Court in Pratap Narain

Singh Deo Vs Srinivs Sabata and another, reported

at 1976 ILLJ 235 SC, wherein it was held that an

employer becomes liable to pay compensation as soon

as the injury is caused to the workmen in the accident

which arises out of or in the course of employment.

Thus, the relevant date for determination of the rate of

compensation is the date of the accident and not the

date of adjudication of the claim.

Pratap Narain (supra) was cited with approval in

Kerala State Electricity Board and another Vs

Valsala K and another, reported at 1999 AIR 3502

(SC) by holding thus;

"5. Our attention has also been drawn to a judgment of

the Full Bench of the Kerala High Court in United

India Insurance Co. Ltd. v. Alavi (1998) 1 KLT 951

wherein the Full Bench preci