IN THE HIGH COURT OF KERALA AT ERNAKULAM
MFA.No. 111 of 2009()
1. NATIONAL INSURANCE CO.LTD.,D.O.,THRISSUR
... Petitioner
Vs
1. VISWANATHAN,S/O.KUNJUNNY,ELAMTHURUTHY
... Respondent
2. THE PROPRIETOR,FURNIKIT,BEHIND KELVIN
For Petitioner :SRI.E.M.JOSEPH
For Respondent :SRI.P.V.CHANDRA MOHAN
The Hon'ble MR. Justice M.N.KRISHNAN
Dated :31/05/2010
O R D E R
M.N. KRISHNAN, J.
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M.F.A. NO. 111 OF 2009
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Dated this the 31st day of May, 2010.
J U D G M E N T
This is an appeal preferred against the order of the
Workmen’s Compensation Commissioner, Thrissur in W.C.C.
335/03. The claimant was awarded a compensation of
Rs.51,775/- with liability to pay interest at the rate of 12%
from the date of accident till the date of deposit. It is
against that decision the insurance company has come up in
appeal challenging the liability to pay interest from the date
of accident.
2. Heard the learned counsel for both the sides.
Learned counsel for the insurance company would submit
before me that the insurance company is liable to pay
interest only from the date of award in the light of the
decisions of the Apex Court. On the other hand the learned
counsel for the respondents would contend before me that in
M.F.A.. 111 OF 2009
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view of the decision of the Division Bench of this Court
reported in National Insurance Co. Ltd. Rekha 2007 (4)
KLT 386 the Division Bench has considered the
Constitutional Bench decision of the Hon’ble Supreme Court
reported in Pratap Narain Singh Deo v. Shrinivas Sabata
(AIR 1976 SC 222) where it is held that interest has to be
paid from the date of accident. In National Insurance Co.
Ltd. Rekha 2007 (4) KLT 386 the Division Bench had
considered the subsequent Division Bench rulings of the
Hon’ble Supreme Court as well as the ruling of the
Constitutional Bench decision of the Apex Court in AIR
1976 SC 222. As per the Constitutional Bench decision the
interest has to be paid from the date of accident. The
Division Bench also held that when there is a conflict
between the Division Bench ruling and the Constitutional
Bench ruling of the Apex Court the Constitutional Bench
decision has to be followed and therefore ultimately held that
the interest has to be paid from the date of accident.
M.F.A.. 111 OF 2009
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3. A similar question was again decided by another
Division Bench of this Court reported in 2009 (1) KLT 825
Harrisons Malayalam Ltd. v. Ashraf the Division Bench
where it is again held that there is, therefore, nothing to
justify the argument that the employer’s liability to pay
compensation under S.3, in respect of the injury, was
suspended until after the settlement contemplated by S.19.
The Division Bench held that interest can be paid from the
date of the accident. So also in the decision of the Himachal
Pradesh High Court reported in New India Assurance
Company v. Budh Ram and another(2009(4) TAC 614)
(HP) the Division Bench ruling has been followed. Therefore
from these discussions it has to be held that the
Compensation Commissioner was perfectly justified in
awarding the interest from the date of accident. Therefore
nothing remains to be considered in this appeal. So the
appeal lacks merit and the same is dismissed.
M.N. KRISHNAN, JUDGE.
ul/-