IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN WEDNESDAY, THE 31ST MARCH 2010 / 10TH CHAITHRA 1932 MFA.No. 127 of 2009() --------------------- WCC.53/2006 of W.C.C.,ERNAKULAM .................... APPELLANT(S): 2ND OPPOSITE PARTY: -------------------------------------------------- NATIONAL INSURANCE CO. LTD., MULLAPILLY BUILDINGS, A.M.ROAD, PERUMBAVOOR REPRESENTED BY THE BRANCH MANAGER. BY ADV. SRI.RAJAN P.KALIYATH RESPONDENT(S): APPLICANT AND OP 1: ---------------------------------------------- 1. MATHEW VARGHESE, MUTHIYELI VEEDU PUTHUVAZHY POST, NEAR JAYAKERALAM HIGH SCHOOL, PERUMBAVOOR. 2. JOHN JACOB, C.O.Y.SONS, A.M.ROAD, PERUMBAVOOR 683542. THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 31/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: M.N. KRISHNAN, J. = = = = = = = = = = = = = = M.F.A. NO. 127 OF 2009 = = = = = = = = = = = = = = = 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 -:2:- 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 -:3:- ''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 -:4:- 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/-