IN THE HIGH COURT OF KERALA AT ERNAKULAM
MFA.No. 127 of 2009()
1. NATIONAL INSURANCE CO. LTD.,
... Petitioner
Vs
1. MATHEW VARGHESE, MUTHIYELI VEEDU
... Respondent
2. JOHN JACOB, C.O.Y.SONS, A.M.ROAD,
For Petitioner :SRI.RAJAN P.KALIYATH
For Respondent : No Appearance
The Hon'ble MR. Justice M.N.KRISHNAN
Dated :31/03/2010
O R D E R
M.N. KRISHNAN, J.
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M.F.A. NO. 127 OF 2009
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Dated this the 31st day of March, 2010.
J U D G M E N T
This is an appeal preferred against the order of the
Workmen’s Compensation Commissioner, Ernakulam in
W.C.C. 53/06. The Compensation Commissioner fixed a
compensation of Rs.75,375/- with 12% from the date of
accident. It is against the grant of interest from the date of
accident the appeal is preferred. The insurance company
would contend that since the amount is determined only by
way of passing an award the interest shall be paid only from
that date and not from the date of accident.
2. Learned counsel also relies upon the rulings of the
Hon’ble Supreme Court in that regard. A Division Bench of
this Court in National Insurance Co. Ltd. Rekha 2007
(4) KLT 386 has considered this point elaborately taking
into consideration the later two judges Bench decision of the
M.F.A.. 127 OF 2009
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Hon’ble Supreme Court as well as the Constitution Bench
decision of the Supreme Court and had arrived at a decision
that interest is payable from the date of accident. The
Division Bench in Rekha’s case referred to the Constitution
Bench decision of the Hon’ble Supreme Court in Pratap
NarainSingh Deo v. Shrinivas Sabata (AIR 1976 SC
222) and also the later two judges Bench decision of the
Hon’ble Supreme Court and held that when there is a conflict
of decisions of the Hon’ble Supreme Court the decision of the
Constitution Bench will prevail. Therefore in the light of the
said dictum the Division Bench considered and held that
interest is liable to be paid from the date of accident.
Following these decisions the Himachal Pradesh High Court
also in the decision reported in New India Assurance
Company v. Budh Ram and another(2009(4) TAC 614)
(HP) held that the entitlement is from the date of accident.
The said decision is extracted as follows.
M.F.A.. 127 OF 2009
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”The Constitutional Bench had already
decided the question as to when
compensation falls due in terms of the
Workmen’s Compensation Act, 1923.
Unfortunately, this decision of the
Constitution Bench was not brought to the
notice of the Apex Court while deciding
National Insurance Company Ltd. v.
Mubasir Ahmed and another, 2007 ACJ 845:
2007(2) TAC 3. Therefore, I feel that this
Court is bound by the judgment rendered
by the Constitutional Bench of the Apex
Court and I accordingly hold that the
compensation falls due on the date when
the accident takes place and in case the
same is not deposited within thirty days,
the workman is entitled to claim interest at
the rate of 12% per annum without having
to show that delay in depositing the
compensation was attributable to the
employer. While taking this view, I am
supported by a Division Bench judgment of
the Kerala High Court reported in National
Insurance Company Ltd. V. Rekha, 2008
ACJ 886.”
M.F.A.. 127 OF 2009
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So in the light of the Constitution Bench decision of the
Supreme Court and the dictum laid down in Rekha’s case it
has to be held that interest is payable from the date of
accident. This is what is precisely done by the Compensation
Commissioner and therefore the appeal lacks merit and the
same is dismissed.
M.N. KRISHNAN, JUDGE.
ul/-