IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR FRIDAY, THE 11TH JANUARY 2008 / 21ST POUSHA 1929 MFA.No. 122 of 2007 ---------------------------- WCC.136/2004 OF COMMISSIONER FOR WORKMEN'S COMPENSATION, KOZHIKODE .................................. APPELLANT/2ND OPPOSITE PARTY --------------------------------------------------- NATIONAL INSURANCE COMPANY LIMITED, KOZHIKODE NOW REPRESENTED BY ITS MANAGER, KOCHI REGIONAL OFFICE, OMANA BUILDING, PADMA JUNCTION, KOCHI-35. BY ADV. SRI.MATHEWS JACOB (SR.) SRI.P.JACOB MATHEW RESPONDENTS: APPLICANTS ------------------------------------------ 1. SHOBANA, W/O. LATE AJAYAKUMAR, THAZHATH VEEDU,PUTHIYARA P.O.,THIRUTHIYAD, KOZHIKODE. 2. ANEESHA, D/O. AJAYAKUMAR, DO..DO. 3. ABHINRAJ, S/O. LATE AJAYAKUMAR. DO..DO 4. LAKSHMIKUTTY AMMA, W/O. LATE GOPALAN NAIR, DO..DO... BY ADV. SRI.JIJI THOMAS THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 11/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B. KOSHY & T.R. RAMACHANDRAN NAIR, JJ. ------------------------------------------------ M.F.A. (W.C.C.) No. 122 of 2007 ------------------------------------------------ Dated this the 11th day of January, 2008 JUDGMENT KOSHY,J. Insurance company filed this appeal challenging the order of the Commissioner for Workmen's Commission, Kozhikode. Two grounds are taken in the appeal. Tribunal has fixed Rs.3,000/- as the monthly income. That is excessive. According to the claimants, he was getting Rs.7,000/-. The deceased was employed as a driver of a car under the first respondent, a medical practitioner. During the course of employment he received fatal injuries when a tanker lorry hit on the car. The deceased was a properly licensed driver. The accident occurred in 2003. A professional driver will get, in any event, more than Rs.3,000/- in a month. It cannot be stated that Rs.3,000/- assessed as the monthly income was very high. Compensation was awarded according the provisions of the Workmen's Compensation Act. Extract of the school register was taken and his age was fixed and relevant factor was also calculated. Compensation is calculated correctly. M.F.A.(WCC) No.122/2007 2 2. Second contention raised is that the Commissioner has awarded interest at the rate of 12% from the date of application, that is, statutory interest at the rate of 12%. Compensation is due on the date of accident itself. In KSEB v. Valsala ((1999) 8 SCC 254), a three- member Bench of the Supreme Court held that the relevant date for determination of rates and liabilities of the parties concerned is the date of accident. A Constitution Bench of Supreme Court in Pratap Narain Singh Deo v. Shrinivas Sabata and another (AIR 1976 SC 222) held that the employer is liable to pay interest as soon as personal injury is caused to the workman in an accident during the course of employment. Hence, interest is payable from the date of application as compensation fell due on that date. It is true that in National Insurance Company v. Mubasir Ahamed (2007 AIR SCW 1265), the Apex Court awarded interest only from the date of award on the facts of that case as the Hon'ble Court in that case relied Maghar Singh v. Jaswant Singh ((1998) 9 SCC 134). In that relied on case, the accident occurred on 27.7.1984 and the Hon'ble Supreme Court has granted interest from 26.7.1984 itself. Considering the series of larger Bench decisions, we are of the view that statutory interest is payable from the date of accident if compensation is not deposited within one month from the date of accidentif it is not paid. Liability to pay interest is statutory. M.F.A.(WCC) No.122/2007 3 In the above circumstances, we see no ground to interfere in the award. Appeal dismissed. J.B.KOSHY JUDGE T.R.RAMACHANDRAN NAIR JUDGE vaa J.B. KOSHY AND T.R.RAMACHANDRAN NAIR, JJ. -------------------------- M.F.A.(W.C.C.)No.122/2007 -------------------------- Judgment Dated:11th January, 2008