Case Note & Summary
The case involves an appeal by the Oriental Insurance Company Ltd. against an award of the Workmen Commissioner, Amreli, in W.C. Application (Fatal) No. 5 of 2007. The dependents of the deceased Bhupatbhai Ukabhai filed a claim for compensation under the Employees' Compensation Act, 1923, alleging that on 16.03.2007, the deceased died due to electrocution while loading cotton bags onto a truck. The Workmen Commissioner awarded Rs. 3,89,962/- with 12% simple interest from the date of the accident till deposit. The insurance company appealed, challenging the grant of interest from the date of accident. The High Court framed the substantial question of law as whether interest can be granted from the date of accident or from the date of petition. The Court, relying on the language of Section 4A of the Act, held that interest is payable from the date of the petition, not the accident. The Court modified the award to grant interest from the date of filing of the petition (date not specified in judgment) instead of from the date of accident. The appeal was partly allowed.
Headnote
A) Workmen Compensation - Interest - Date of Accident vs Date of Petition - Section 4A of Employees' Compensation Act, 1923 - The solitary issue was whether interest on compensation should run from the date of accident or from the date of filing of the claim petition. The Court held that interest under Section 4A is payable from the date of the petition, not from the date of the accident, and modified the award accordingly. (Paras 1, 3-4)
Issue of Consideration
Whether the Workmen Commissioner can grant interest from the date of the accident or from the date of the petition under the Employees' Compensation Act, 1923.
Final Decision
Appeal partly allowed. The award is modified to the extent that interest on the compensation amount shall be payable from the date of filing of the petition instead of from the date of the accident. No order as to costs.
Law Points
- Interest on compensation under Employees' Compensation Act
- 1923
- Section 4A
- date of accident vs date of petition
- substantial question of law
