THE HONOURABLE SRI JUSTICE P. SWAROOP REDDY C.M.A.No.448 of 2005 JUDGMENT: This civil miscellaneous appeal is filed by the insurance company-2nd opposite party against the orders of the Commissioner for Workmen’s Compensation and Assistant Commissioner of Labour, Karimnagar, in W.C.No.15 of 2004. 2. Heard. 3. The brief facts are as follows: The applicants filed claim petition in W.C.Case No.15 of 2004 claiming compensation of Rs.3.50 lakhs for the death of Bollam Srinivas, helper on trolley bearing No.AP.28.V.556 contending that on 13.12.2003 at about 4.00 a.m. the deceased workman and the driver of the trolley went to Huzurabad and Parkal for distribution of breads and after distribution of breads, when they reached near the outskirts of Gattududdenapally village, due to rash and negligent driving of the driver, the trolley fell in agricultural well by the side of the road, on account of that the deceased died. A case in Cr.No.186 of 2003 was registered about the accident. According to the applicants, the deceased was being paid Rs.3000/- per month as salary. Respondents filed counters denying the petition allegations. 4. On the basis of the pleadings, the following issues were framed: 1. Whether there was employee-employer relationship between the deceased workman and the opposite party No.1 as on the alleged date of accident? 2. Whether there was an accident out of and in the course of employment of the deceased workman with the opposite party No.1 resulting in his injuries and death? 3. The exact age and wage of the deceased workman in case compensation is due? 4. Whether the opposite party No.2 is liable to pay compensation in case compensation is due. 5. On behalf of the applicants, P.W.1 was examined and Exs.A1 to A5 were marked. On behalf of the respondents, no oral evidence was adduced, however, Exs.R1 to R3 were marked. On the basis of the material on record, the court below held that the respondents are liable for compensation only for Rs.2,54,330/-and awarded interest at 12% per annum from 03.01.2004, the date of petition. Aggrieved by the above quantum, the present appeal is filed by the insurance company. 6. Now, the point for consideration is whether there are any grounds for allowing the appeal? 7. In this appeal, the appellant seriously disputes only the date of award of interest. 8. The contention of the learned counsel for the appellant is that the date of payment of award shall be from the date of order and not from any other date. 9. None appears for the respondents. 10. Learned counsel for the appellant relies on the decision of the Hon’ble Supreme Court in NATIONAL INSURANCE CO.LTD. v. MUBASIR AHMED AND ANOTHER[1] wherein the Apex Court held that Section 4-A of the Workmen’s Compensation Act, 1923(for short ‘the Act’) was amended by amending Act 30 of 1995 and as per the amendment, the minimum rate of interest to be simple interest at 12% per annum and starting point is on completion of one month from the date on which it fell due and it cannot be from the date of accident. The Hon’ble Supreme Court also held that Section 4-A(1) of the Act prescribes that compensation under Section 4 shall be paid as soon as it falls due and that the compensation becomes due on the basis of adjudication of the claim made. The adjudication under Section 4 of the Act in some cases involves the assessment of loss of earning capacity, unless adjudication is done, question of compensation becoming due does not arise, but reading of Section 4-A(2) would make the position clear as it provides that provisional payment to the extent of admitted liability has to be made, the crucial expression is ‘falls due’ and not ‘from the date of accident’. 11. In view of the above decision of the Supreme Court and in view of Section 4 of the Act, it has to be accepted that the amount would fall due only after it is arrived at. As such, interest is liable to be paid from the date of adjudication, i.e. order passed by the original authority. 12. In the circumstances, the C.M.A. is allowed holding that the appellant is liable for interest only after the award, i.e., 30 days after passing of the award and not from the date of petition. No order as to costs. ______________________ P. SWAROOP REDDY, J. 24th December 2010, Rns [1] 2007 ACJ 845