Supreme court in the recent judgement of North East Karnataka Road Transport Corporation vs. Smt. Sujatha observed that, while awarding compensation to the employee, the grant of interest is to be awarded from the date of the accident under the Workmen’s Compensation Act, 1923.
In this case, the employer has challenged the final order and judgement of the Karnataka High Court which confirmed the order passed by the commissioner for Workmen’s Compensation, Bellary, allowed the compensation awarded to wife of the deceased employee who died in the course of employment. The commissioner had awarded a sum which would carry an interest at the rate of 12% per annum but awarded on the expiry of 45 days of the order and that too, only if, the employer failed to deposit the awarded sum within 45 days of the order.
The bench consists of Justice Abhay Manohar Sapre and Justice Indu Malhotra referred the case of Pratap Narain Singh Deo vs. Srinivas Sabata, a four-judge bench of this court held that an employer becomes liable to pay compensation as soon as the personal injury is caused to the workman in the accident which arose out of and in the course of employment and what is imperative here, is the date of the accident and not the date of adjudication of the claim.
The question as to when does the payment of compensation under the Act becomes due and consequently what is the point of time from which interest on such amount is payable, is provided under section 4-A (3) of the Act.
Tags : #Workmen’s Compensation Act, 1923