THE HON’BLE SHRI JUSTICE ANIL KUMAR JUKANTI

CIVIL MISCELLANEOUS APPEAL No.588 of 2013

JUDGMENT:

This Civil Miscellaneous Appeal is filed aggrieved by the

order dated 19.11.2012 passed in W.C.No.454 of 2003 on the file of the Commissioner for Employees’ Compensation and Deputy Commissioner of Labour, 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. Learned counsel for appellant (Opposite Party No.2 in W.C.) contended that Commissioner by his order dated 19.11.2012 directed to pay an amount of Rs.2,13,383/- within 30 days from the date of receipt of order, failing which, interest @ 12% per annum is to be paid. Learned counsel has invited the attention of this Court to Sections 4 and 4(A) of the Workmens’ Compensation Act, 1923, (for short “the Act”).

It is further 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.2,12,458 together with stamp fee of Rs.425/- and the advocate fee of Rs.500/-, total amount to Rs.2,13,383/- (Rupees Two Lakhs Thirteen Thousand and Three Hundred and Eighty Three 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.”

4. It is evident from the Act that the compensation falls due from the date of accident, if it is not paid within one month, interest has to be paid from the date of completion of one month till the date of deposit, in other words, any delay in deposit/payment beyond a period of one month 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.

5. It is brought to the notice of this Court that in a few matters, this Court passed orders granting interest to be paid one month from the date of accident till the date of deposit. The date of compensation to be paid falls due from the date of accident. Hon’ble Apex Court in Oriental Insurance Company Limited v. Siby George, (2012) 12 SCC 540, held as follows:

“9. Now, coming back to the question when does the payment of compensation fall due and what would be the point for the commencement of interest, it may be noted that neither the decision in Mubasir Ahmed [(2007) 2 SCC 349 : (2007) 1 SCC (L&S) 643] nor the one in Mohd. Nasir [(2009) 6 SCC 280 : (2009) 2 SCC (Civ) 877 : (2009) 2 SCC (Cri) 987] can be said to provide any valid guidelines because both the decisions were rendered in ignorance of earlier larger Bench decisions of this Court by which the issue was concluded. As early as in 1975 a four- Judge Bench of this Court in Pratap Narain Singh Deo v. Srinivas Sabata [(1976) 1 SCC 289 : 1976 SCC (L&S) 52 : AIR 1976 SC 222 : 1976 Lab IC 222] directly answered the question. In paras 7 and 8 of the decision it was held and observed as follows: (Srinivas Sabata case [(1976) 1 SCC 289 : 1976 SCC (L&S) 52 : AIR 1976 SC 222 : 1976 Lab IC 222] , SCC pp. 291-92)

“7. Section 3 of the Act deals with the employer's liability for compensation. Sub-section (1) of that section provides that the employer shall be liable to pay compensation if ‘personal injury is caused to a workman by accident arising out of and in the course of his employment’. It was not the case of the employer that the right to compensation was taken away under sub-section (5) of Section 3 because of the institution of a suit in a civil court for damages, in respect of the injury, against the employer or any other person. The employer ther