KAILASH Vs. RAJESH

JUDGEMENT

(1.) BEING aggrieved by the order dated 7.8.2006, passed by Commissioner for Workmen's Compensation, Labour Court, Indore, in Case No. 46/99, W.C.N.F., whereby on account of injuries sustained by the appellant a sum of Rs. 1,14,367/ -, has been awarded along with interest @ 6% p.a. from the dale of accident, the present appeal, has been filed.

(2.) SHORT facts of the case are that the appellant filed a claim petition alleging that appellant sustained injuries on 10.7.1998, during the course of his employment. Claim petition filed by the appellant was contested by respondent No. 2 and was allowed along with interest from the dale of accident. Learned Counsel for the appellant submits that the interest has been awarded @ 6% p.a., while the interest ought to have been awarded @ 12% p.a., as per Section 4 -A of Workmen's Compensation Act, which has been amended w.e.f. 15.9.1995 by Amendment Act, No. 30/1995.

(3.) MR . S.S. Chawla, learned Counsel for respondent No. 2 placed reliance on a decision of Hon'ble Apex Court in the matter of National Insurance Co. Ltd. v. Mubasir Ahmed and Anr. 2007 (112) FLR 1933 (SC), wherein the Hon'ble Apex Court has observed that 'Interest is payable under Section 4 -A(3) if there is default in paying the compensation due under this Act within one month from the date it fell due. The question of liability under Section 4 -A was dealt with by this Court in Maghar Singh v. Jashwant Singh : 1997 ACJ 517 (SC). By Amending Act, 30 of 1995, Section 4 -A of the Act was amended, inter alia, fixing the minimum rate of interest to be simple interest at the rate of 12 per cent. In the instant case, the accident took place after the amendment and, therefore, the rate of 12 per cent as fixed by the High Court cannot be faulted. But the period as fixed by it is wrong. The starting point is on completion of one month from the date on which it fell due. Obviously, it cannot be the date of accident. Since no indication is there as when it becomes due, it has to be taken to be the date of adjudication of the claim. This appears to be so because Section 4 -A(1) prescribes that compensation under Section 4 shall be paid as soon as it falls due. The compensation becomes due on the basis of adjudication of the claim made. The adjudication under Section 4 in some oases involves the assessment of loss of earning capacity by a qualified medical practitioner. Unless adjudication is done, question of compensation becoming due does not arise. The position becomes clearer on a reading of Sub -section (2) of Section 4 -A. It provides that provisional payment to the extent of admitted liability has to be made when employer does not accept the liability for compensation to the extent claimed. The crucial expression is 'falls due'. Significantly, legislature has not used the expression 'from the date of accident'. Unless there is an adjudication, the question of an amount falling due does not arise.'