The court ruled that interest on compensation under the Workmen's Compensation Act begins from the accident date, not from adjudication.

ORAL JUDGMENT

1. Present appeal is filed by the appellants – original claimants under Section 96 of the Civil Procedure Code, 1908 and under the provisions of the Workmen’s Compensation Act against the impugned judgment and award dated 20.08.2009 passed by the learned Commissioner, Workmen’s Compensation Act and Judge, Labour Court, Palanpur [hereinafter be referred to as “the learned Commissioner”] in W.C. Application (New) No. 106 of 1996 [W.C. Application (Old) No.2 of 1992] whereby the learned Commissioner allowed the application and awarded compensation along with the interest.

2. Facts of the present case are that appellants No.1 and 2 and father-in-law of appellant No.3 Kalubhai Haribhai Panchal was working as driver with respondent No.1 (deceased Kalubhai Haribhai Panchal) was driving the Jeep bearing Registration No. GRO-163 of respondent No.1 and getting Rs.1000/- per month as remuneration. That on 10.09.1991, Kalubhai Panchal was driving the Jeep and was going from Bhoyani to Palanpur, during that nearby Manjripara at the time of taking turn the Jeep became turtle, due to which Kalubhai sustained serious injury and admitted in Deesa Civil Hospital where he died because of the injury. The legal heirs of deceased Kalubhai Haribhai Panchal preferred W.C. Application No. 2 of 1992 before the Labour Court, Palanpur, which came to be allowed and awarded the compensation along with the interest as aforesaid. Being aggrieved, the present appeal is filed.

3. Heard learned counsel appearing for the respective parties at length and perused the material on record.

3.1 Learned counsel for the appellants has submitted the same facts which are narrated in the memo of appeal and has submitted that the learned Commissioner has completely overlooked and ignored the provisions of Section 4 of the Workmen’s Compensation Act which reads thus:-

“4. amount of compensation – (1) Subject to the provision of this Act – the amount of compensation shall be as follows namely :-

(A) Where the death result from the injury – an amount equal to 50% of the monthly wages of the deceased workman multiplied by the relevant factor or An amount of 80,000/- which ever is more.”

3.2 Learned counsel for the appellants has emphasized upon the provision of Section 4 (A) of the Act and submitted that in the present case, the amount of compensation is less than Rs.80,000/- whichever is required to be awarded by the learned Commissioner. Learned counsel has submitted that so far as the interest at the rate of 6% is concerned, the learned Commissioner has committed serious error in awarding interest from the date of filing of examination-in-chief instead of from the date of accident. Learned counsel has also submitted that the amount of compensation awarded by the learned Commissioner is very meager and, therefore, the same deserves to be enhanced. It is submitted that the learned Commissioner awarded the interest from the date of filing of examination-in-chief under the provision of Order 18 which is unjust, illegal and erroneous, in fact, the penalty and interest are required to be awarded from the date of accident because on reading the provision of Section 4 (A) of the Act, it is crystal clear that the respondents are liable to pay the penalty and compensation from the date of accident within thirty days and they have to deposit additional amount of compensation failing which they are liable to pay penalty at the rate of 50% meaning thereby that from the date on which it was fallen due the respondents are liable to pay the interest from the date of accident and penalty. Learned counsel for the a