THE HON’BLE SRI JUSTICE G.V.SEETHAPATHY CIVIL MISCELLANEOUS APPEAL No.30 OF 2009 DATED: 23.06.2011 Between: United India Insurance Company Limited, Rep.by its Divisional Manager, Nizamabad. ..... PETITIONER And Kanupuri Panchalamma & 5 others. .....RESPONDENTS JUDGMENT: This appeal is directed against the order, dated 14.05.2008, in W.C.No.179 of 2003 on the file of the learned Commissioner for Workmen’s Compensation and Assistant Commissioner of Labour, Nizamabad, wherein the said application filed by the respondents herein for compensation, was allowed, awarding a sum of Rs.3,59,536/- with interest @ 7.5% p.a. from one month after the date of the accident. 2. Heard both sides. Perused the record. 3. The only contention raised in this appeal is that the interest is payable only from one month after the date of award and not after the date of the accident. 4. In NATIONAL INSURANCE COMPANY LIMITED v. MUBASIR AHMED AND ANOTHER [1], the apex Court held as follows: “The compensation becomes due on the basis of adjudication of the claim made. The adjudication under Section 4 in some cases involves the assessment of loss of earning capacity by a qualified medical practitioner. Unless adjudication is done, question of compensation becoming due does not arise. The position becomes clearer on a reading of sub-Section (2) of Section 4-A. It provides that provisional payment to the extent of admitted liability has to be made when employer does not accept the liability for compensation to the extent claimed. The crucial expression is ‘falls due’. Significantly, legislature has not used the expression ‘from the date of accident’. Unless there is an adjudication, the question of an amount falling due does not arise”. 5. In the above case, the apex Court held that interest would be awarded only on completion of one month from the date it fell due i.e. after adjudication but not one month from the date of the accident. The above decision is followed by this Court in NEW INDIA ASSURANCE COMPANY LIMITED v. A.NARSIMHULU AND ANOTHER[2], wherein it is held that the claimant is entitled for interest on compensation if it is not paid by the insurer within one month from passing of award by the Commissioner and not from the date of accident. 6. In view of the above settled proposition of law, the direction contained in the impugned award for payment of interest from one month after the date of the accident is liable to be set aside and the same is accordingly set aside and the claimants are held entitled for interest only from one month after the date of the award. The impugned order is modified accordingly. 7. In the result, the appeal is allowed as stated above. There shall be no order as to costs. _______________________ G.V.SEETHAPATHY, J 23rd August, 2010 Note: Furnish C.C. of the order within one week. B/o Tsy [1] 2007 ACJ 845 [2] 2009 (4) ALT 162