Case Note & Summary
The dispute arose from a claim for compensation under the Workmen’s Compensation Act, 1923 following an accident on July 12, 2006. The Commissioner for Workmen’s Compensation ordered payment of interest from the date of the accident, which the appellant contested, arguing that interest should only accrue from the date of the Commissioner’s order. The Kerala High Court dismissed the appellant's appeal as barred by limitation, prompting the appellant to seek special leave from the Supreme Court. The Supreme Court examined the relevant provisions of the Act, particularly Section 4-A, and referenced previous judgments, including National Insurance Co. Ltd. vs. Mubasir Ahmed and Oriental Insurance Company Limited vs. Mohd. Nasir, to determine the correct interpretation of when compensation becomes due and when interest should be calculated. The court concluded that compensation is due from the date of the accident, and interest is payable from that date, rejecting the appellant's argument. The court emphasized that the decisions in Mubasir Ahmed and Mohd. Nasir did not consider earlier binding precedents and thus did not express the correct legal position. Ultimately, the Supreme Court dismissed the appeal with costs of Rs. 20,000, to be paid to the respondents within six weeks.
Headnote
A) Workmen's Compensation - Payment of Compensation - Due Date for Compensation - Workmen’s Compensation Act, 1923, Section 4-A - The court clarified that compensation becomes due at the time of the accident, not upon adjudication, and interest is payable from that date. The court dismissed the appeal, affirming the Commissioner’s order for interest from the date of the accident (Paras 2-12).
Issue of Consideration
When does the payment of compensation under the Workmen’s Compensation Act become due and from when is interest payable?
Final Decision
The Supreme Court dismissed the appeal, affirming that compensation becomes due at the time of the accident and interest is payable from that date, with costs of Rs. 20,000 to be paid to the respondents within six weeks.
Law Points
- Workmen's Compensation
- Interest on Compensation
- Adjudication of Claims
- Employer's Liability
- Default in Payment
