MOHD SHAFI Vs. COMMISSIONER AND OTHERS

JUDGEMENT

(1.) The petitioner sustained injuries while on duty. He was allowed compensation under the Workman's Compensation Act. The operative part of the order passed by the Commissioner under the Workmen's Compensation Act on 30.12.1986 reads as under

(2.) Payment of this amount was not made within the stipulated period of one month. The petitioner preferred an application for execution. He pleaded that as the awarded amount was recovered through execution, he should be paid penalty and interest in terms of Section 4(A) of the Workmen's Compensation Act, 1923. This claim of his was rejected on the ground that such a relief was not granted to him when application preferred by him came to be decided on 30.12.1986. The Commissioner, accordingly, refused to pass an order for payment of penalty and interest. It is against this order the present petition has been preferred.

(3.) The learned counsel for the petitioner submits that under the law compensation was supposed to be paid when it fell due and if it is not paid, then penalty for this denial is a must. It is submitted that Section 4-A(2) provides in mandatory terms that in case where the employer does not accept the liability of compensation to the extent claimed, he shall be bound to make provisional payment based to the extent of liability which he accepts and such payment has to be deposited with the Commissioner or made to the workman, as the case may be without prejudice to the right of the workman to make any further claim. It is further submitted that if Sub-Section (3) is taken into consideration, then wherever any employer is in default in paying compensation due under this Act within one month from the date it fell due, the Commissioner is to direct that in addition to the amount of arrears pay simple interest @ 6% per annum thereon or at such higher rate not exceeding the maximum of the lending rules of any Scheduled Bank. Section 4-A as it existed when cause of action arises reads under.