Interest for compensation cannot commence before the application date in cases of undue delay.

JUDGMENT

Appellant is the 2^nd opposite party in W.C.C No. 286 of

2005 of the Workmens Compensation Commissioner, Palakkad. This appeal is filed aggrieved by the direction in the impugned order to pay interest at the rate of 12% from the date of accident.

2. The appellant raises two substantial questions of law. The first question of law is as to whether the claimants in an application can be granted interest for the amount of compensation from the date of accident, if there is inordinate delay on their part to approach the Workmens Compensation Commissioner. The next question raised is as to whether the Commissioner was correct in granting interest in the rate of 12%, where as the rate of interest as per the Act at the time of occurrence of the accident was only 6%.

3. Heard the learned Counsel for the appellant and the learned Counsel appearing for respondents 1 to 4. The learned Counsel for the appellant relied on judgment of this Court in Venugopalan v. Cheeni Packaging , [2024 (1) KLT 94] , and contented that this Court in the said case held that when there was delay in filing the claim, the interest from the date of accident till the date of filing of the application cannot be granted as the same would impose unjustifiable liability on the employer or the insurer. In view of the judgments cited, I am of the view that the first question of law raised is to be answered in favour of the appellant. Therefore, I hold that, respondents 1 to 4 are entitled for interest only from the date of application, till the date of actual payment.

4. Regarding the next issue also, I am of the view that the issue will have to be definitely answered in favour of the appellant. The learned Commissioner, in the impugned order, had noticed, as evident from page No.3 of the order, that the accident occurred prior to the amendment in 2000. That being so, the Commissioner, was not justified in granting interest at the rate of 12% as at the time of accident, the interest payable under the statute was only at the rate of 6%. Hence the respondents 1 to 4 are entitled for interest at the rate of 6% from the date of filing of the application till the actual payment of compensation.

To the above extent, the impugned order is modified and the appeal is thus disposed of. If the amount deposited by the appellant has not been released to the respondents 1 to 4 so far, amount due as per this judgment shall be released to them. The remaining amount if any, shall be refunded to the appellant.