ORIENTAL INSURANCE CO LTD Vs. SUSHMA

JUDGEMENT

(1.) THE present F. A. O. has been preferred against the award dated 6. 8. 2003, passed by learned Commissioner under the Workmen's Compensation Act, 1923.

(2.) THE brief facts necessary for the adjudication of this appeal are that respondent nos. 1 to 4 (hereinafter referred to as 'the claimants' for convenience sake) had filed petition under section 22 of the Workmen's compensation Act, 1923 for grant of compensation on account of death of Kamla bhadur in an accident during the course of her employment when the Malgi Bridge under construction in Tehsil Suni suddenly collapsed on 11. 12. 1997. The respondent nos. 5 and 6 filed'joint replies. Respondent No. 7 has also filed reply to the claim petition. He has admitted that the deceased workwoman, who died on 11. 12. 1997 in the accident, was his employee. Appellant insurance company has also filed reply to the claim petition. The learned Commissioner awarded a sum of Rs. 3,27,707 as compensation amount in favour of the claimants including the interest at the rate of 12 per cent per annum on 6. 8. 2003. The respondent Nos. 5 to 7 were also ordered to pay a sum of Rs. 10,000 each to the claimants by way of penalty vide award dated 6. 8. 2003.

(3.) MR. Lalit Sharma learned counsel for the appellant has strenuously argued that the award dated 6. 8. 2003 is not sustainable in the eyes of law. Mr. Sharma then contended that the compensation 'falls due' when it has been adjudicated upon by the commissioner and not at the time when the accident takes place. Mr. Sharma also contended that the learned Commissioner could not award penal interest at the rate of 18 per cent per annum for every day of delay if the parties did not deposit within one month of the announcement of the award, the entire amount. He has strongly relied upon National Insurance Co. Ltd. v. Mubasir Ahmed, 2007 ACJ 845 (SC), to buttress his submissions.