1 lgc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.1752 OF 2008 Shri Prabhakar Laxmikant Shrisunder : Appellant. Versus Shri Shivaji Govind Shelke & Anr. : Respondents. Mr. M B Kotak for the appellant. None for the respondents. CORAM : C.L.PANGARKAR, J. DATE : 04th February 2010 P.C. 1. Heard the learned counsel for the Appellant. 2. Rule. Rule returnable forthwith. Heard finally with consent of the learned counsel for the Appellant. 3. This appeal is preferred by the original applicant against the order of passed by the Workmen’s Compensation Commissioner. The facts giving rise to this appeal are as under :- The applicant was working as a cleaner on motor vehicle No.MH-05-S-1762. Non-applicant No.1 is the owner of the said vehicle. While the applicant was travelling in the said vehicle, the said vehicle met with an accident in which the applicant received injuries. At the 2 time of accident he was 35 years of age and was earning a salary of Rs. 4000/- per month. He suffered disability due to the injuries received by him in the said accident. He therefore claimed compensation of Rs. 4,72,944/-. 4. The application was opposed by the owner of the vehicle. He however admits that the applicant was working as a cleaner of the said motor vehicle and that the vehicle met with an accident. He contended that the vehicle was insured and the insurance company was intimated with regard to the said accident. He also admitted his salary. Non- Applicant No.2 i.e. Insurance Company also resisted the applicatio0n and contended that the application was false. It was contended that the applicant No.1 was not in employment of non-applicant No.1 and he was not workman within the meaning of the Workmen’s Compensation Act. 5. The learned Judge of the trial Court recorded the evidence and found that the applicant had suffered disability and was entitled to compensation of Rs.2,12,824/-. The learned judge also awarded interest from the date of adjudication. 3 6. When this appeal came up for hearing, the learned counsel for the appellant made a statement that he only challenges the order of the learned Commissioner with regard to award of interest from the date of adjudication in stead of from the date of accident. Therefore, this Court directed notice to be issued to the Respondents giving an understanding that the appeal shall be heard finally at the stage of admission. In spite of service of notice, Non-applicant No.2 Insurance Company has not cared to appear before the Court. The appeal is now therefore heard finally. 7. The learned counsel for the appellant brings to my notice the provisions contained in Section 4(A) of the Workmen’s Compensation Act. Section 4(A) reads thus :- “4-A. Compensation to be paid when due and penalty for default-- (1) Compensation under Section 4 shall be paid as soon as it falls due. (2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, 4 and, such payment shall be deposited with the Commissioner or made to the workman, as the case may be, without prejudice to the right of the workman to make any further claim. (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, (b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent of such amount by way of penalty; Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the 5 employer to show cause why it should not be passed. Explanation – For the purposes of this sub- section, “scheduled banks means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) (3-A) The interest and penalty payable under sub- section (3) shall be paid to the workman or his dependent, as the case may be.” After going through the provisions of the said Section, it is apparent that the employer is bound to pay not only the amount of compensation but he is also bound to pay simple interest at the rate of twelve percent if he commits default in paying the compensation within one month from the date it fell due. It can be said that the compensation fell due as soon as the applicant suffered injuries. In the circumstances, the learned Commissioner definitely fell in error in awarding interest from the date of his order. The applicant would, therefore, be entitled to interest from the date of accident itself. 8. In the circumstances, this first appeal is allowed. The final order passed by the learned Commissioner of Workmen’s Compensation 6 stands modified to the effect that the applicant shall be entitled to interest from the date of accident i.e. when compensation fell due. No order as to costs. [C.L.PANGARKAR, J]