TMT SUMATHI Vs. M. RATHNAVELU

JUDGEMENT

(1.) This Civil Miscellaneous Appeal is filed raising the substantial question of law regarding the payment of interest to be granted under the Workmen Compensation Act.

(2.) The learned counsel for the appellants mainly contended that the interest of 12% is not granted from the date of accident. Contrarily, the interest was granted with effect from the expiry of period of 30 days from the date of passing of the award. Therefore, there is a huge loss in the matter of calculating the interest to the appellants.

(3.) This Court is of the considered opinion that Section 4-A(3)(a) of Employees Compensation Act, direct that the employer shall, in addition to the amount of arrears, pay simple interest thereon at the rate of 12% per annum or at such higher rate not exceeding the maximum of the lending rates of any Scheduled Bank, as may be specified by the Central Government, by Notification in the Official Gazette. Thus, the claimants are entitled for 12% interest as per the above provisions of the Employees Compensation Act.