FAQIR CHAND Vs. SURAJ PARKASH

JUDGEMENT

(1.) On the claim application of the appellants, the authority under Workmen's Compensation Act, 1923 (for short the "Act of 1923"), Assistant Labour Commissioner, Jammu (for short "ALC") passed an award dated 23.04.2010 holding respondent no. 1 responsible for payment of an amount of Rs. 4,15,960/- (Rs. Four lac fifteen thousands nine hundred sixty only), as compensation, to the dependants of the deceased, Vijay Kumar, Driver. It was further directed that respondent no. 1 will also pay simple interest @ 12 % as provided under Subsection 3(a) of Section 4-A of the Act of 1923 from 24th May, 2010 viz. one month after the passing of the award, till the amount of compensation is paid. The insurance company was directed to pay the award amount to appellants.

(2.) Learned counsel for the appellants submitted that appellants are aggrieved of the direction of the ALC to the extent, the interest of the award amount has been ordered to be paid from 24th May, 2010 and not from the date of the accident viz. 8th January, 2003, when Vijay Kumar, Driver of the Tempo Traveler No. JK02P-3374 died in a vehicular accident at Achar Kund near Nandni, Tehsil Jammu. Learned counsel referred to Section 4-A(3)(a) of the Act of 1923 and submitted that there was default in payment of compensation, and the compensation had fallen due on 8th January, 2003 when the accident took place resulting in the death of Vijay Kumar and in view of the mandate contained in Section 4-A(3)(a), ALC was under statutory obligation to direct for payment of interest from 8th February, 2003 within one month from the date it fell due viz. 8th January, 2003. Learned counsel in support of his contention referred to and relied upon judgments of Hon'ble Supreme Court in case titled Partap Narain Singh Deo. (appellant) v. Shrinivas Sabata and another (respondents), 1976 AIR(SC) 222, rendered by Bench comprising of Hon'ble four Judges of Hon'ble Supreme Court; Kerala State Electricity Board and another petitioners v. Valsala K. and another etc., 1999 AIR(SC) 3502, decision rendered by Bench comprising of Hon'ble three Judges of Hon'ble Supreme Court; Divisional Manager v. Mohd. Sultan and another decided on 04.02.2009 in CIMA No. 123/2007 & CIMA No. 186/2007. Learned counsel accordingly, prayed that the award be modified and interest be ordered to be paid from 8th February, 2003, which comes to one month from the date of the accident.

(3.) Mr. R. K. Gupta, learned Sr. counsel appearing for the respondent no. 2 submitted that direction given by ALC, as simple interest @ 12%, is correct in law, inasmuch as, in terms of award dated 23.04.2010 whereunder the claim of the appellants was adjudicated upon, the payment of interest would become due only on 24.05.2010. Learned counsel, in support of his contention referred to and relied upon, judgments of Hon'ble Supreme Court in case titled U.P.S.R.T.C. now Uttarakhand Transport Corporation v. Satnam Singh, 2012 ACJ 691, decision rendered by Bench comprising of Hon'ble two Judges of Hon'ble Supreme Court; Oriental Insurance Company Limited v. Mohd. Nasir and another, 2009 6 SCC 280, decision rendered by Bench comprising of Hon'ble two Judges of Hon'ble Supreme Court; National Insurance Co. Ltd. v. Mubasir Ahmed and another, 2007 ACJ 845, decision rendered by Bench comprising of Hon'ble two Judges of Hon'ble Supreme Court; Kamla Chaturvedi v. National Insurance Co. and ors., 2009 1 SCC 487, decision rendered by Bench comprising of Hon'ble two Judges of Hon'ble Supreme Court and submitted that in view of the law laid down by Hon'ble Supreme Court in these cases, ALC has not committed any legal error in awarding and directing for payment of interest from 24th May, 2010 viz. one month after the date of the award. Learned counsel, accordingly, prayed for dismissal of the appeal.