IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN FRIDAY, THE 19TH FEBRUARY 2010 / 30TH MAGHA 1931 MFA.No. 124 of 2009() --------------------- WCC.55/2004 of W.C.C.,ERNAKULAM .................... APPELLANT(S): -------------- THE UNITED INDIA INSURANCE CO.LTD., ALUVA BRANCH REPRESENTED BY THE DEPUTY MANAGER, UNITED INDIA INSURANCE CO.LTD., REGIONAL OFFICE, KOCHI, HOSPLITAL ROAD, ERNAKULAM. BY ADV. SRI.M.A.GEORGE RESPONDENT(S): --------------- 1. SRI.C.R.MUTHUSWAMY, S/O.RAMASWAMI, KANNADIPARAMBU, CANAL ROAD, THEVARA, KOCHI-13. 2. SILPA CONSTRUCTION COMPANY, REPRESENTED BY ITS PROPRIETOR, T.S.SANIL, NORTH SQUARE BUILDING, PARAMARA ROAD, ERNAKULAM. THIS MISC. FIRST APPEAL HAVING COME UP FOR ADMISSION ON 19/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: M.N. KRISHNAN, J. ........................................... M.F.A. No.124 OF 2009 ............................................. Dated this the 19th day of February, 2010. J U D G M E N T This appeal is preferred against the order of the Workmen's Compensation Commissioner, Ernakulam in WCC.No.55/2004. The claimant, who sustained injuries in a road accident, has been awarded a compensation of Rs.95,712/= with a direction to pay interest at the rate of 12% from the date of accident. Challenge is whether the interest has to be paid from the date of accident or from the date of award. 2. The learned counsel for the insurance company had relied upon a ruling of the Supreme Court and contended for the position that entitlement of interest is only from the date of award and not from the date of accident. The decision of the Supreme Court was considered by a Division Bench of this Court along with the decision of the Constitution Bench of the Supreme Court in National Insurance Company Ltd. v. Rekha (2008 ACJ 886). The Division Bench held that the Constitution Bench of the Supreme Court in Pratap : 2 : M.F.A. No.124 OF 2009 Narain Singh Deo v. Shrinivas Sabata (AIR 1976 SC 222) had held that entitlement of interest is from the date of accident. When there is a Constitutional Bench ruling and a Division Bench ruling, the court held that decision of the Upper Bench will prevail and therefore accepted the proposition laid down in Pratap Narain Singh Deo's case and held that entitlement of interest is from the date of accident. It is also seen from the decision reported in New India Assurance Company v. Budh Ram (2009 (4) TAC 614), a learned Judge of the Himachal Pradesh High Court had considered the Constitution Bench decision as well as the decision of this Court in National Insurance Company Ltd. v. Rekha (2008 ACJ 886) and had held as follows: “The Constitution 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 Constitution Bench of the Apex Court and I : 3 : M.F.A. No.124 OF 2009 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”. From the discussions made above, entitlement is from the date of accident and therefore nothing requires to be interfered. So the appeal is dismissed. M.N. KRISHNAN, JUDGE cl : 4 : M.F.A. No.124 OF 2009