THE HON’BLE SHRI JUSTICE ANIL KUMAR JUKANTI

CIVIL MISCELLANEOUS APPEAL No.467 of 2021

JUDGMENT:

This Civil Miscellaneous Appeal is filed by appellant/

Insurance Company aggrieved by the order dated 19.11.2012 passed in W.C.No.456 of 2003 on the file of the Commissioner for Employees Compensation-cum-Deputy Commissioner of

Labour at Nizamabad (for short ‘the Commissioner’).

2. Heard Mr. A.Ramakrishna Reddy, learned Standing Counsel for appellant/Opposite Party No.2 and

Mr. T.V.Kalyan Singh, learned counsel for respondents.

3. The applicant (Housekar Sainath in W.C.No.456 of 2003) was working as a labour on a lorry bearing ABT 1408, under the employment of opposite party No.1 (Aslam Khan). When the lorry laden with sand was going from Velpoor to Nizamabad on 16.08.2002, at 7:00 p.m., it reached the crossing after Adimamidipally village, the driver of the vehicle drove in rash and negligent manner, hit two persons and then lorry turned

turtle and fell in a ditch. The applicant suffered fractures of right metatarsal bones, fracture of ribs, multiple and grievous injuries on head and other parts of the body. Cr.No.124 of 2002 was registered by Police in Police Station, Makloor.

4. Applicant was shifted to Tirumala Hospital, Nizamabad, treated as inpatient, thereafter he was treated in various other hospitals (private). Applicant claims he is permanently disabled and unable to discharge his duties, that opposite party No.1 terminated his services. Doctor issued a permanent partial disability certificate for 60%, claimant sought Rs.3,00,000/-. Commissioner, after considering exhibits A1 to A7, examining witnesses AW1 and AW2 (for applicant), RW1 (for respondents) and the submissions, awarded a compensation of Rs.1,50,770/- to be paid within 30 days from the date of receipt of order, failing which interest @ 12% per annum be paid. Award is dated 19th November, 2012. Cheque bearing No.“006415” drawn on HDFC Bank, Nizamabad, is dated 01.12.2012 for an amount of Rs.1,50,770/- is deposited in the account of Commissioner for Workmen’s Compensation of Deputy Commissioner of Labour, Nizamabad.

5. Learned counsel for appellant (Opposite Party No.2 in W.C.) contended that Commissioner by order dated 19.11.2012 directed to pay an amount of Rs.1,50,770/- within 30 days from the date of receipt of order, failing which, interest @ 12% per annum is to be paid. Learned counsel invited the attention of this Court to Sections 4 and 4(A) of the Workmens’ Compensation Act, 1923, (for short “the Act”) and submitted that the amount of compensation has to be deposited within a period of one month from the date of receipt of a copy of order of adjudication. The following is the relevant portion of the order of the Commissioner dated 19.11.2012:

“In the result, I hereby order the opposite parties 1 and 2 to deposit jointly and severally compensation of Rs.1,49,970/- together with stamp fee of Rs.300/- and the advocate fee of Rs.500/-, total amount to Rs.1,50,770/- (Rupees One Lakh Fifty thousand seven hundred and seventy only) within (30) days by means of demand draft drawn on any nationalized bank payable in favour of the Commissioner for Workmen’s Compensation and Deputy Commissioner of Labour, Nizamabad, from the date of receipt of this order failing which it carries interest @ 12% per annum.”

6. It is evident from the Act that the compensation amount falls due from the date of accident, if it is not paid within one month, interest has to be paid from one month of the accident date till the date of deposit. In other words, delay in deposit/payment of compensation beyond a period of one month from the date of accident/incident attracts interest at the rate as decided by the Commissioner. The purport of the Act is that amount is liable to be paid immediately after the accident/incident.

7. It is brought to the notice of this Court that in a few matters, this Court passed orders directing interest to be paid, if amount of compensation is paid one month after the date o