IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE K.P.BALACHANDRAN TUESDAY, THE 16TH SEPTEMBER 2008 / 25TH BHADRA 1930 MFA.No. 138 of 2008 --------------------------------- WCC.208/2004 of W.C.C., KANNUR .................... APPELLANT/2nd OPPOSITE PARTY: NATIONAL INSURANCE CO.LTD., KANNUR, REP. BY THE MANAGER, KOCHI REGIONAL OFFICE, M.G.ROAD, KOCHI-35. BY ADV. SRI.E.M.JOSEPH RESPONDENTS/APPLICANTS & 1ST O.P.: 1. C.H.RAMLA, W/O.LATE C.H.FAROOK, C.H.HOUSE, PO.KOTTAYAM, MALABAR 2. C.H.FARHANA, D/O.LATE C.H.FAROOK, DO. DO. 3. C.H.FARHAN, S/O.LATE C.H.FAROOK, DO. DO. 4. C.H.MUHAMMED FARZIN, DO. DO. 5. MAHAMOOD.K., KAVULLATHIL HOUSE, MATHIPARAMBA, PO.MEKKUNNU, VIA.CHOKLI. 6. RABIYA.C.C, W/O.MAHAMOOD, CHERIYA CHOKIYIL HOUSE, PO.PALLOOR, NEW MAHE. 7. K.P.SUBHAKARAN, S/O.RAMAN, KUNHIPARAMBATH HOUSE, KOTTAYAM MALABAR.PO., KUTHUPARAMBA VIA. THIS MISC. FIRST APPEAL HAVING COME UP FOR ADMISSION ON 16/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.Koshy & K.P.Balachandran, JJ. --------------------------------- M.F.A.No.138 of 2008 --------------------------------- JUDGMENT Koshy, J. The deceased, who was an autorickshaw driver by profession, sustained fatal injuries during the course of employment on 26.2.2002. The Workmen's Compensation Commissioner awarded an amount of Rs.4,11,900/- with 12% interest from the date of accident in an application filed by the wife, children and parents of the deceased. 2. The main contention raised in this appeal is that Rs.4,000/-, fixed as the monthly income, is on the higher side. Admittedly, the deceased was a duly licensed autorickshaw driver. An autorickshaw driver will get more than Rs.150/- per day and Rs.4,000/- fixed as the monthly income cannot be termed as excessive. The compensation was calculated strictly as per the provisions under the Workmen's Compensation Act. 205.95 was taken as the relevant factor as he was aged 31 at the time of MFA 138/08 2 accident. Therefore, it cannot be stated that compensation awarded is excessive. 3. The next contention is that 12% interest awarded from the date of accident is excessive. Section 4A of the Workmen's Compensation Act deals with payment of interest. Section 4A(3) provides that compensation should be paid within one month from the date of accident and the employer should be directed to pay interest at the rate of 12% per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank on the amount due. The question is when the compensation fell due. In Kerala State Electricity Board v. Valsala ((1999) 8 SCC 254) this question was considered by a three member bench of the Honourable Supreme Court. In that case the accident occurred prior to the amendment of the Workmen's Compensation Act, which came into force on 15.9.1995. The contention taken up by the workmen was that even though the accident occurred before the date of amendment, the compensation fell due MFA 138/08 3 after the amendment, as the adjudication was done after the amendment and therefore, benefit under the amended provisions should be granted to the workmen. That was rejected by the Honourable Supreme Court and held that amount falls due on the date of accident itself and therefore, if the accident is occurring before the amended Act, compensation cannot be decided on the basis of the amended sections. The matter was also considered by a Constitutional Bench of the Honourable Supreme court in Pratap Narain Singh Deo v. Shrinivas Sabata (AIR 1976 SC 222), wherein, it was held that the liability of an employer to pay compensation under Section 3 arises immediately on the occurrence of the accident. It was also held in paragraph 8 of the said judgment that it was the duty of the appellant under Section 4A(1) of the Act to pay compensation at the rate provided by Section 4 as soon as the personal injury was caused to the respondent. In Gopinath v. United India Insurance Co. Ltd. (2000 II LLJ 80 Ker. DB), Vagher MFA 138/08 4 Mamad Husein Gadh v. Secretary, Gujarat Electricity Board (1996 Lab. IC 368), Divisional Manager, New India Assurance Co. Ltd. v. S.B. Singh (2003 Lab. IC 596 Orissa) and in various other decisions it has been held that interest is payable from the date of accident. In Maghar Singh v. Jashwant Singh ((1998) 9 SCC 134) case the accident was in 1984 and the Supreme Court directed to pay interest from 1984 onwards, but, however, considering the long delay, by exercising the powers of the Supreme Court, the rate of interest was reduced from 12% to 9%. From these larger bench decisions it is very clear that interest is payable from the date of accident when the compensation fell due. We see no merit in the appeal. Appeal is dismissed. (J.B.Koshy, Judge) 16th September, 2008 (K.P.Balachandran, Judge) tkv