IN THE HIGH COURT OF KERALA AT ERNAKULAM
MFA.No. 138 of 2008()
1. NATIONAL INSURANCE CO.LTD.
... Petitioner
Vs
1. C.H.RAMLA, W/O.LATE C.H.FAROOK,
... Respondent
2. C.H.FARHANA, D/O.LATE C.H.FAROOK
3. C.H.FARHAN, S/O.LATE C.H.FAROOK
4. C.H.MUHAMMED FARZIN, S/O.LATE C.H.FAROOK
5. MAHAMOOD.K., KAVULLATHIL HOUSE
6. RABIYA.C.C, W/O.MAHAMOOD, CHERIYA
7. K.P.SUBHAKARAN, S/O.RAMAN,
For Petitioner :SRI.E.M.JOSEPH
For Respondent : No Appearance
The Hon'ble MR. Justice J.B.KOSHY
The Hon'ble MR. Justice K.P.BALACHANDRAN
Dated :16/09/2008
O R D E R
J.B.Koshy & K.P.Balachandran, JJ.
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M.F.A.No.138 of 2008
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JUDGMENT
Koshy, J.
The deceased, who was an autorickshaw driver by
profession, sustained fatal injuries during the
course of employment on 26.2.2002. The Workmen’s
Compensation Commissioner awarded an amount of
Rs.4,11,900/- with 12% interest from the date of
accident in an application filed by the wife,
children and parents of the deceased.
2. The main contention raised in this appeal is
that Rs.4,000/-, fixed as the monthly income, is on
the higher side. Admittedly, the deceased was a
duly licensed autorickshaw driver. An autorickshaw
driver will get more than Rs.150/- per day and
Rs.4,000/- fixed as the monthly income cannot be
termed as excessive. The compensation was
calculated strictly as per the provisions under the
Workmen’s Compensation Act. 205.95 was taken as the
relevant factor as he was aged 31 at the time of
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accident. Therefore, it cannot be stated that
compensation awarded is excessive.
3. The next contention is that 12% interest
awarded from the date of accident is excessive.
Section 4A of the Workmen’s Compensation Act deals
with payment of interest. Section 4A(3) provides
that compensation should be paid within one month
from the date of accident and the employer should
be directed to pay interest at the rate of 12% per
annum or at such higher rate not exceeding the
maximum of the lending rates of any scheduled bank
on the amount due. The question is when the
compensation fell due. In Kerala State Electricity
Board v. Valsala ((1999) 8 SCC 254) this question
was considered by a three member bench of the
Honourable Supreme Court. In that case the accident
occurred prior to the amendment of the Workmen’s
Compensation Act, which came into force on
15.9.1995. The contention taken up by the workmen
was that even though the accident occurred before
the date of amendment, the compensation fell due
MFA 138/08 3
after the amendment, as the adjudication was done
after the amendment and therefore, benefit under
the amended provisions should be granted to the
workmen. That was rejected by the Honourable
Supreme Court and held that amount falls due on the
date of accident itself and therefore, if the
accident is occurring before the amended Act,
compensation cannot be decided on the basis of the
amended sections. The matter was also considered
by a Constitutional Bench of the Honourable Supreme
court in Pratap Narain Singh Deo v. Shrinivas
Sabata (AIR 1976 SC 222), wherein, it was held that
the liability of an employer to pay compensation
under Section 3 arises immediately on the
occurrence of the accident. It was also held in
paragraph 8 of the said judgment that it was the
duty of the appellant under Section 4A(1) of the
Act to pay compensation at the rate provided by
Section 4 as soon as the personal injury was caused
to the respondent. In Gopinath v. United India
Insurance Co. Ltd. (2000 II LLJ 80 Ker. DB), Vagher
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Mamad Husein Gadh v. Secretary, Gujarat Electricity
Board (1996 Lab. IC 368), Divisional Manager, New
India Assurance Co. Ltd. v. S.B. Singh (2003 Lab.
IC 596 Orissa) and in various other decisions it
has been held that interest is payable from the
date of accident. In Maghar Singh v. Jashwant
Singh ((1998) 9 SCC 134) case the accident was in
1984 and the Supreme Court directed to pay interest
from 1984 onwards, but, however, considering the
long delay, by exercising the powers of the Supreme
Court, the rate of interest was reduced from 12% to
9%. From these larger bench decisions it is very
clear that interest is payable from the date of
accident when the compensation fell due.
We see no merit in the appeal. Appeal is
dismissed.
(J.B.Koshy, Judge)
16th September, 2008
(K.P.Balachandran, Judge)
tkv