Case Note & Summary
This appeal arises from an award dated 31 March 1999 passed by the Commissioner for Workmen's Compensation, Wardha, in WCC No. 7 of 1987. The deceased, Jalilkhan Pathan, was a coolie employed on a truck owned by respondent No.1 and insured with respondent No.2, New India Assurance Company Limited. He died in an accident due to negligent driving. The Commissioner found that the death occurred during the course of employment, determined monthly wages at Rs.900, and awarded compensation of Rs.69,170 to the legal representatives. However, the Commissioner directed that interest at 12% per annum would be payable only if the amount was not paid within three months. The appellants, being the legal representatives, appealed against this interest direction, seeking interest from the date of filing of the claim petition. The Insurance Company filed a cross-objection, arguing that Rs.15,000 earlier awarded under no-fault liability under the Motor Vehicles Act should be deducted from the compensation. The High Court heard both sides. The court held that interest should be awarded from the date of filing of the petition, not from a future date, and modified the award accordingly. Regarding the cross-objection, the court held that the amount received under no-fault liability under the Motor Vehicles Act cannot be deducted from compensation under the Workmen's Compensation Act, as both are separate statutory schemes. The appeal was allowed, and the cross-objection was dismissed.
Headnote
A) Workmen's Compensation - Interest on Compensation - Section 4A, Workmen's Compensation Act, 1923 - Interest should be awarded from the date of filing of the claim petition, not from a future date after expiry of three months - The Commissioner's order granting interest only after three months was modified to allow interest from the date of petition (Para 4). B) Workmen's Compensation - Deduction of No-Fault Liability Amount - Section 140, Motor Vehicles Act, 1988 - Amount received under no-fault liability under the Motor Vehicles Act cannot be deducted from compensation awarded under the Workmen's Compensation Act - The Insurance Company's cross-objection for deduction was dismissed (Para 5).
Issue of Consideration
Whether interest on compensation under the Workmen's Compensation Act should be awarded from the date of filing of the claim petition or from a later date, and whether the amount received under no-fault liability under the Motor Vehicles Act should be deducted from the compensation.
Final Decision
The appeal is allowed. The award is modified to the extent that the appellants are entitled to interest at the rate of 12% per annum on the amount of compensation from the date of filing of the claim petition. The cross-objection filed by the Insurance Company is dismissed. No order as to costs.
Law Points
- Interest on compensation under Workmen's Compensation Act should be awarded from the date of filing of the claim petition
- not from a future date
- no deduction of amount received under Motor Vehicles Act no-fault liability from compensation under Workmen's Compensation Act.
