Shaik Gaffar v. Khaleel Ahmed And ANR

THE HON'BLE SRI JUSTI CE CHALLA KODANDA RAM CI VI L MI SCELLANEOUS APPEAL No.1 6 7 of 2 0 1 1 JUDGMENT:

This appeal is filed against the order dated 07.12.2010 passed by the Commissioner, Workmen's Compensation, in W.C.No.57 of 2001 NF. Heard learned counsel for the appellant, and Sri Nasaraiah Golla, learned Standing Counsel for the respondent insurance company. The only question which has been pressed for consideration is with regard to the date of payment of interest.

Whatever may be the position prior to the judgment of Hon'ble Supreme Court in Or ien t al I n su r an ce Com pan y v . Siby Geor ge 1, finality was given in Siby Geor ge ( 1 su pr a) with respect to the issue that compensation amount falls due and payable as on the date of accident. This was in line with the judgment of Supreme Court in Pr at ap Nar ain Sin gh Deo v . Sr in iv as Sabat a 2. My learned brother Justice A. Rajasheker Reddy had elaborately considered all the judgments cited by both the appellants as well as respondents in C.M.A.No.871 of 2015, and by order dated 04.12.2015 had held that the appellant/ claimant is entitled to interest at 12% per annum from the date of accident till the date of realisation. However, though the amount of compensation is due on the date of accident, the liability to pay interest arises only after one month from the date of accident. This is on account of Section 4A(3) of the Workmens Compensation Act, 1923.

1 (2012) 12 SCC 540 2 (1976) 1 SCC 289

With respect to the contention of learned Standing Counsel for insurance company that the insurance company may not be mulcted with liability in cases where the appeal against the owner stood dismissed and the owner having not been made a party respondent, the said contention is liable to be rejected for the reason that the issue had already been dealt in C.M.A.No.871 of 2015, dated 04.12.2015, by referring to the judgment of Division Bench of this Court in Mek a Ch ak r a Rao v. Yelu ban di Babu Rao @ Reddem m a 3. The judgment of Division Bench being binding on this Court, and there being no reason for this Court to differ with the rationale in Mek a Ch ak r a, the contention of the learned Standing Counsel for insurance company is rejected. Accordingly, the civil miscellaneous appeal stands disposed of.

It is made clear that wherever the compensation amount has been deposited in pursuance of the orders of Commissioner, the payment of interest shall be reckoned from one month after the date of accident till the date of deposit. No costs. Miscellaneous applications, if any pending, shall also stand closed. No costs.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ CHALLA KODANDA RAM, J 24th February, 2021 ksm 3 2001 (1) ALD 453

THE HON'BLE SRI JUSTI CE CHALLA KODANDA RAM CI VI L MI SCELLANEOUS APPEAL No.1 6 7 of 2 0 1 1 2 4 t h Febr u ar y , 2 0 2 1 ksm