AO/131/2009 of NEW INDIA ASSURANCE COMPANY LIMITED Vs SMT CHANA DEVI and OTHERS

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL

Appeal from Order No. 131/2009

The New India Assurance Company Limited …. Appellant

Versus

Smt. Chana Devi & Others .… Respondents

Mr. T.A. Khan, Senior Advocate, for the appellant. None for the respondents.

April 28, 2017

Hon’ble Servesh Kumar Gupta, J.

The Court has rendered hearing to learned Senior Counsel for the appellant, while none turned up on behalf of the respondents/claimants even in the revised call. Repeated adjournments were sought earlier by the respondents on the previous dates also.

The only question involved in this appeal is regarding the date of falling due the interest payable by the appellant to the claimant. under the directions of this Court dated 18.11.2010, The principal amount of compensation has already been withdrawn by the claimants and the interest is lying in the fixed deposit. Competent authority had decreed the WCA 19/2007 granting compensation to the tune of Rs. 3,55,126/- and interest amounting to Rs. 85,230/- was awarded in addition, which accrued from the date of accident.

Learned Senior Counsel for the appellant has drawn the attention of this Court towards the interpretation of Section 4-A(3) of the Workmen’s Compensation Act dealing with the subject. It envisages that interest is payable under such provisions if there is default in paying the compensation due within one month

from the date it fallen due. Starting point is on completion of one month from the date on which it fell due.

The Hon’ble Apex Court dealing with the controversy in Kamla Chaturvedi v. National Insurance Co. & Others, 2009 (1) T.A.C. 1, inter alia, relied on National Insurance Co. Ltd. v. Mubasir Ahmed & Another, 2007 (2)SCC 349,and held that 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.

So, the sum and substance of the ratio laid down by the Hon’ble Apex Court is that the amount of compensation will be deemed to have been due since the date of adjudication.

In view of what has been set forth above, I allow this appeal and struck off the orders of the competent authority on the interest amount. This amount along with interest accrued on it shall be returned to the appellant insurance company.

Let the LCR be sent back.

Prabodh

(Servesh Kumar Gupta, J.)