^J/^' -^y HIGH COURT OF CHHATTISGARH AT BILASPUR v^-\ Single Bench: Hon'ble Shri Justice Radhe Shvam Sharma Appellant Claimant Miscellaneous Appeal (C.) No.873 of 2007 Santosh Kumar Gond, Son of Late Mangaluram Gond, aged about 27 years, resident of Chanduwabhata, Link Road, Bilaspur (CG) Respondents versus 1. 2. Deepak Kumar Sarraf, son of M.L. Sarraf, through : Motilal Service Station, Link Road, Bilaspur Tahsil and District Bilaspur (CG) United India Insurance Company Limited, through Branch Manager, Branch Office Rajendra Nagar Chowk, Bilaspur (CG) Present: Shri Goutam Khetrapal, counsel for the appellant. Shri Viprasen Agrawal, counsel for respondent No.1. Shri Sanjay S. Agrawal, counsel for respondent No.2. MisceljaneQus Appeal under Section 30 ofthe Workmen's Cpmpensation Act, 1923 ORAL ORDER (25th July, 2011) The instant appeal has been filed under Section 30 of the Workmen's Compensation Act, 1923 (henceforth 'the Act, 1923') by claimant Santosh Kumar Gond against award dated 17.8.2006'passed by the Commissioner for Workmen's Compensation, Labour Court, Bilaspur (henceforth 'the Commissioner') in Case No.877W.C.A./2004 CN.F.) insofar as it relates to non-awarding of interest and penalty on the amount of compensation. •';A \0 2. Facts of the case, in nutshell, are that the appellanVclaimant was employed as a driver in a truck bearing registration No.C.G.-10-ZB-0182, owned by respondent No.1 Deepak Kumar Sarraf. On 18.07.2004, the appellant was coming from Korba to Bilaspur, and when he reached near Koni, a tree fell down over the cabin of the truck. In the accident, the appellant sustained grievous injuries, as a result of which, his left leg amputated. The appellant sustained 80% permanent disablement and 100% loss of income. The appellant preferred a claim petition before the Commissioner claiming compensation of Rs.5,12,568/-. 3 . In this appeal, as per first proviso to sub-section (1) of Section 30 of the Act, 1923, following substantial question of law has been framed by this Courton 22.01.2010: "Whether the learned Commissioner for Workmen's Compensation was justified in awarding the interest from the date or order?" 4. There is no dispute that the award of Rs.3,10,488/- has been passed by the Commissioner on 17.8.2006 against respondent No.2-lnsurance Company and award of Rs.50,000/- has been passed against respondent No.1 Deepak Kumar Sarraf by way of penalty under Section 4-A (3) (b) of the Act, 1923. 5. Shri Goutam Khetrapal, learned counsel for the appellant has argued that provision of clause (a) of sub-section (3) of Section 4-A of the Act, 1923 is mandatory in nature, but the Commissione.r did not award interest on the \A^ amount of compensation. The interest is payable from the date of filing of the claim petition, but the Commissioner has not awarded any interest, which is violation of the provision of clause (a) of sub-section (3) of Section 4-A of the Act, 1923. Learned counsel placed relianceon Oriental Insurance Company Limited vs. Mohd. Nasir and another, (2009) 6 SCC 280, Kamla Chaturvedi vs. National Insurance Company and others, (2009) 1 SCC 487 and National Insurance Co. Ltd. vs. Mubasir Ahmed and another, (2007) 2 SCC 349. 6. It is not disputed that the amount of compensation was not paid within the prescribed period of 30 days from the date of the accident, i.e., 18.7.2004. Clause (a) of sub-section (3) of Section 4-A of the Act, 1923 runs thus: "4-A. Compensation to be paid when due and penalty for default.— xxxxx xxxxx xxxxx (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall— (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due;and" 7. Looking to the above provision, it appears to be mandatory in nature as the word "shall" has been used as such the appe!lant/claimant was entitled to get simple interest per annum on the amount of compensation, i.e., Rs.3,10,488/-. 8 . In National Insurance Co. Ltd. vs. Mubasir Ahmed and another (supra), the Hon'ble Supreme Court has held thus: "9. Interest is payable under Section 4-A(3) if there is default in paying the compensation due under this Act within one month from the date it fell due. The question of liability under Section 4-A was dealt with by this Court in Maghar Singh v. Jashwant Singh, (1998) 9 SCC 134. By amending Act 30 of 1995, Section 4-A of the Act was amended, inter alia, fixing the minimum rate of interest to be simple interest @ 12%. In the instant case, the accident took place after the amendment and, therefore, the rate of 12% asfixed bythe High Courtcannot befaulted. ........" 9. In Kamla Chaturvedi vs. National Insurance Company and others (supra), the Hon'ble Supreme Court has held thus: "10. In National Insurance Co. Ltd. v. Mubasir Ahmed, (2007) 2 SCC 349, itwas, interalia, held as follows: (SCC pp. 354-55, para 9) "9. Interest is payable under Section 4-A(3) if there is default in paying the compensation due under this Act within one month from the date it fell due. The question of liability under Section 4-A was dealt with by this Court in Maghar Singh v. Jashwant Singh. (1998) 9 SCC 134. By amending Act 30 of1995, Section 4-A of the Act was amended, inter alia, fixing the minimum rate of interest to be simple interest @ 12%. In the instant case, the accident took place after the amendment and, therefore, the rate of 12% asfixed bythe High Courtcannot befaulted. ........" 10. Applying the above principle laid down by the Hon'ble Supreme Court, it is evident that interest is payable from the date offiling ofthe claim petition, i.e., 01.10.2004. Hence, the appellant/claimant is entitled to get simple interest at the rate of 12% per annum from 01.10.2004 till realization of the amountofcompensation ofRs.3,10,488/-. \^ 11. In the result, the appeal is allowed in part. So far as awarding of interest is concerned, the appellant/claimant shall be entitled to get simple interest at the rate of 12% per annum on the amount of compensation of Rs.3,10,488/- with effect from 01.10.2004 till realization of final payment of the compensation and respondent No.1 Deepak Kumar Sarraf and respondent No.2/insurance company shall be liable jointly or severally for payment of the amount of compensation together with the interest awarded thereon within a period of two months from today. No order as to costs. Sd/- R.S. Sharma Judge tlini/Gopa!