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2014 Supreme(Online)(Kar) 130

KARNATAKA HIGH COURT
H. G. Ramesh, J.
Sannabasavaraja v. B. S. Pushpalatha and Another
M. F. A. No. 190 of 2012



1. This appeal is by an employee and is directed against the judgment dated 29.8.2011 passed by the Commissioner for Workmen's Compensation, Davanagere. By the impugned judgment, the Commissioner has awarded Rs.1,21,997 as compensation to the appellant for the permanent partial disablement suffered by him due to the injuries caused to him in a motor vehicle accident that occurred on 17.4.2010 along with interest thereon at the rate of 12 per cent per annum from expiry of 30 days from the date of the judgment.

2. I have heard the learned counsel appearing for the parties and perused the impugned judgment. The sole contention urged by the learned counsel appearing for the appellant is that the Commissioner for Workmen's Compensation had erred in law in not awarding interest on the compensation amount from expiry of one month from the date of the accident. In support of his contention, he relied on a judgment of the Apex Court in Oriental Insurance Co. Ltd. v. Si by George, 2012 ACJ 2126 (SC) and specifically referred to the following observations made therein:
"(11) The decision in Pratap Narain Singh Deo, 1976 ACJ 141 (SC), was by a four - Judge Bench and in Valsala K., 2000 ACJ 5 (SC), by a three - Judge Bench of this court. Both the decisions were, thus, fully binding on the court in Mubasir Ahmed, 2007 ACJ 845 (SC) and Mohd. Nasir, 2009 ACJ 2742 (SC), each of which was heard by two Judges. But the earlier decisions in Pratap Narain Singh Deo and Valsala were not brought to the notice of the court in the two later decisions in Mubasir Ahmed and Mohd. Nasir.
(12) In the light of the decisions in Pratap Narain Singh Deo and Valsala K., it is not open to contend that the payment of compensation would fall due only after the Commissioner's order or with reference to the date on which the claim application is made. The decisions in Mubasir Ahmed and Mohd. Nasir in so far as they took a contrary view to the earlier decisions in Pratap Narain Singh Deo and Valsala K., do not express the correct view and do not make binding precedents." (Emphasis supplied)
As could be seen from the above observations of the Supreme Court, the law laid down in National Insurance Co. Ltd. v. Mubasir Ahmed, 2007 ACJ 845 (SC) and Oriental Insurance Co. Ltd. v. Mohd. Nasir, 2009 ACJ 2742 (SC) is overruled.

3. In the light of the law laid down by the Supreme Court in Siby George referred to above, if any employer commits default in paying the compensation amount due under the Employee's Compensation Act, 1923, the employee or his dependant, as the case may be, is entitled for interest at the rate of 12 per cent per annum under S.4 - A (3) (a) of the aforesaid Act, on the compensation amount due, from expiry of one month from the date it fell due, i.e., from expiry of one month from the date the injury or death resulting from such injury was caused by the accident till the date of its deposit. Accordingly, the appellant is held entitled for interest at the rate of 12 per cent per annum on the compensation amount due, from expiry of one month from the date of the accident till the amount is deposited. Impugned judgment stands modified to the said extent. The appeal is allowed in terms stated above.

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