Case Note & Summary
The appeal was filed by the National Insurance Co. Ltd. challenging the judgment and order dated 13/05/2010 passed by the Commissioner for Workmen's Compensation, Goa, which awarded compensation of Rs. 3,98,800/- with interest at 12% p.a. from 12/04/2004 till realization. The deceased, Uttam Naik, was a driver employed by respondent no.3 Yogesh Sharmalkar on a mini truck. He died in an accident on 12/03/2004 arising out of and in the course of employment. The parents of the deceased filed an application for compensation. The insurance company was impleaded as the vehicle was insured. The Commissioner granted compensation with interest. The insurance company appealed, initially raising a ground that the policy did not cover the risk under the Employees Compensation Act, but that ground was not pressed. The only issue argued was the rate of interest. The High Court noted that the Commissioner had awarded interest at 12% p.a. from 12/04/2004, but the correct date of accident was 12/03/2004. The Court held that the rate of interest should be 9% p.a. as per the prevailing rate under the Workmen's Compensation Act, 1923. Accordingly, the appeal was partly allowed, reducing the interest rate from 12% to 9% p.a., while confirming the rest of the award.
Headnote
A) Workmen's Compensation - Interest on Delayed Payment - Section 4A of the Workmen's Compensation Act, 1923 - The Commissioner awarded interest at 12% p.a. from the date of accident. The High Court held that the rate of interest should be 9% p.a. as per the prevailing rate under the Act, reducing the interest from 12% to 9% p.a. (Paras 4-5).
Issue of Consideration
Whether the rate of interest awarded by the Commissioner under the Workmen's Compensation Act, 1923 is excessive and requires reduction.
Final Decision
Appeal partly allowed. The rate of interest is reduced from 12% p.a. to 9% p.a. from the date of accident (12/03/2004) till realization. The rest of the award is confirmed.
Law Points
- Workmen's Compensation Act
- 1923
- Section 4A
- Interest on delayed payment
- Reduction of interest rate from 12% to 9% p.a.
Case Details
2015 LawText (BOM) (08) 111
Appeal Under Workmen's Compensation Act No. 1 of 2015
Mr. U. R. Timble for appellant, Mr. Arjun Nak for respondent nos.1a,1b,1c,1d and 2, Mr. J. P. Mulgaonkar for respondent no.3
National Insurance Co. Ltd.
Shri Kashinath Naik, Smt. Satyabama K. Naik, Shri Yogesh Rama Sharmalkar
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Nature of Litigation
Appeal against order of Commissioner for Workmen's Compensation awarding compensation with interest.
Remedy Sought
Insurance company sought reduction of interest rate from 12% to 9% p.a.
Filing Reason
Insurance company challenged the rate of interest awarded by the Commissioner.
Previous Decisions
Commissioner for Workmen's Compensation awarded Rs. 3,98,800/- with interest at 12% p.a. from 12/04/2004.
Issues
Whether the rate of interest of 12% p.a. awarded by the Commissioner is excessive and should be reduced to 9% p.a. under Section 4A of the Workmen's Compensation Act, 1923.
Submissions/Arguments
Appellant submitted that the rate of interest should be 9% p.a. as per the prevailing rate under the Act.
Respondents supported the Commissioner's order.
Ratio Decidendi
Under Section 4A of the Workmen's Compensation Act, 1923, the rate of interest on delayed payment of compensation should be 9% p.a., not 12% p.a.
Judgment Excerpts
In all fairness, the learned Counsel appearing for the appellant submits that the appellant is not pressing for the said ground.
The learned Commissioner has awarded interest at the rate of 12% p.a. from 12/04/2004 (wrongly mentioned as 27/12/2001) till actual realisation.
The rate of interest should be 9% p.a. as per the prevailing rate under the Workmen's Compensation Act, 1923.
Procedural History
The parents of deceased Uttam Naik filed an application for compensation before the Commissioner for Workmen's Compensation. The Commissioner awarded compensation of Rs. 3,98,800/- with interest at 12% p.a. on 13/05/2010. The insurance company appealed to the High Court of Bombay at Goa on 07/08/2015.
Acts & Sections
- Workmen's Compensation Act, 1923: Section 4A
