RIENTAL INSURANCE CO.LTD. Vs. MAN BAHADUR

JUDGEMENT

(1.) The only ground upon which the appeal of the appellant -insurer has to be partly allowed is with respect to multiplication of the relevant factor, as prescribed in Schedule -IV to the Workmens Compensation Act, 1923 with the monthly wage of the deceased workman. The Commissioner has held that the deceased workman was drawing monthly wage of Rs. 300 and he has, in terms of Section 4(1)(a), read with Schedule -IV of the Act multiplied the aforesaid monthly wage of Rs. 300 in its entirety with the relevant factor of 221.37 treating the age of the workmen as 22 years and thus calculated the compensation amount at Rs. 66,411,00. In doing so, the Commissioner ignored the clear stipulation in Section 4(1)(a) of the Act which stipulated (at the relevant time) that the multiplication of the relevant factor has to be with 40% of the monthly wages of the deceased workman and not the monthly wage in its entirety. Section 4(l)(a) of the Act, as it stood on the relevant date, read as under :

(2.) A bare look at the aforesaid provision of law clearly points out that there is an error apparent on the face of the Award which is patently contrary to, and in violation of, the explicit provision of law. This error, therefore, requires rectification. The relevant factor of 221.37 had to be multiplied with Rs. 120, being 40% of the monthly wage of Rs. 300 and that being the case, the awarded amount comes to Rs. 26,564.40 instead of Rs. 66,411.00 as has wrongly been awarded by the Commissioner.

(3.) The Commissioner has awarded interest for 9 years at the rate of 6% per annum. Section 4 -A(3)(a) of the Workmens Compensation Act, 1923 read thus: "4 -A. Compensation to be paid when due and penalty for default 1............................................................................................................ 2............................................................................................................ 3............................................................................................................ (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent, 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, on the amount due; and"