Compensation under the Employee's Compensation Act is due immediately upon the accident, with interest applicable from that date, contingent on proper adherence to insurance and licensing conditions.

1. This appeal is filed under S.30 of the Employee's Compensation Act, 1923, challenging the judgment / award dated 2.7.2013 passed by the Commissioner, Employee's Compensation, Labour Court, Raipur (hereinafter referred to as 'the Commissioner') in Case No. 113 / WC Act / 2012 (F), whereby the Commissioner awarded a total sum of Rs. 4,48,000 as compensation.

2. Facts relevant for disposal of this appeal are that Mahesh Baghel (now deceased), who was son of appellants - claimants, was employed with the respondent No. 1 as driver of the vehicle Tata Ace bearing registration No. CG 04 - JB 4217. On 20.5.2009 when deceased Mahesh Baghel was on his duty, some dacoits after murdering him looted the vehicle. The incident was reported to concerned police station Saja, Durg (now district Bemetara). The appellants - claimants filed an application claiming compensation before the Commissioner, mentioning therein that on the date of incident, deceased Mahesh was aged 20 years and was being paid Rs. 4,000 per month as salary.

3. Respondent No. 1 - non - applicant No. 1 submitted reply to the application filed by the claimants and admitted the claim of the appellants and further pleaded that as on the date of accident the vehicle was insured with respondent No. 2 - non - applicant No. 2, the liability for payment of amount of compensation would be on insurance company.

4. Respondent No. 2 - non - applicant No. 2 - insurance company also submitted its reply and pleaded that the application claiming amount of compensation is false and fabricated. It was admitted that the vehicle was insured as light goods vehicle, but pleaded that there was breach of condition of insurance policy as on the date of accident, driver Mahesh was not possessing valid and effective driving licence and there was no valid permit and fitness certificate, as such, there is no liability of the insurance company to satisfy the amount of compensation.

5. Upon appreciation of pleadings and evidence placed on record by the respective parties, the Commissioner allowed the application and awarded Rs. 4,48,000 as compensation. Interest at the rate of 12 per cent per annum is ordered, if the amount awarded by the Commissioner is not deposited within a period of 2 months from the date of judgment / award.

6. The appeal was admitted on the following substantial questions of law:
(i) Whether the Commissioner was justified in not granting interest from the date of accident till its recovery in view of the judgment of Oriental Insurance Co. Ltd. v. Siby George , 2012 ACJ 2126 (SC)?
(ii) Whether the Commissioner was justified in not imposing penalty upon the employer who withheld the payment of compensation on the date of accident?
(iii) Whether the finding of the learned Commissioner exonerating the insurance company from its liability by holding that the deceased, who possessed a learner's licence, was not competent to drive the alleged transport vehicle is perverse?

7. Learned counsel for the appellants - claimants submits that under the provisions of the Employee's Compensation Act, 1923 (for short 'the Act, 1923'), the compensation is to be paid as soon as it falls due, i.e., on the date of accident and if the amount of compensation is not paid within a period of one month from the date of accident then interest is to be allowed at the rate of 12 per cent per annum, but in the case at hand, the Commissioner ignoring the provisions of the Act, 1923, awarded only default interest, i.e., the claimants will be entitled for interest only if the compensation is