Partly allowed

Sudha Rani Jamwal and Ors. v. Managing Director,J.K.S.R.T.C.Jammu

J&K HC1 Dec 2021MA/105/2016

Case brief

AI extract

What is this about?

The High Court held that under Section 4A(3) of the Workmen's Compensation Act, 193, statutory interest on employee compensation is payable from the date due (one month after the accident), not from the date of filing the claim application, and modified the award accordingly.

What did the court decide?

Statutory interest calculated from the expiry of one month from the date of accident; award stands modified.

Sudha Rani Jamwal and Ors. Vs Managing… — Banking and Recovery | J&K HC (2021)

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Sr. No. 17

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HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU

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MA No. 105/2016

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Sudha Rani Jamwal and Ors.

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…..Appellant(s)/Petitioner(s)

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Through: Mr. R.S Kotwal, Advocate.

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Managing Director JKSRTC Jammu

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.…. Respondent(s)

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Through: Mr. Kamal Gupta, Advocate.

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Coram: HON’BLE MR. JUSTICE PUNEET GUPTA, JUDGE

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ORDER

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Learned counsel for the appellants has argued that the appellants are entitled to interest from the date of the accident and not from the date of filing of claim application as held in the impugned award passed by the Commissioner under Employees Compensation Act (Assistant Labour Commissioner), Jammu. Learned counsel for the appellants does not press for grant of penalty amount though the plea is taken in the appeal.

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Learned counsel for the appellants to support his contention has placed reliance on the judgment of the Apex Court rendered in case titled Saberabibi Yakubbhai Shaikh and ors. Vs National Insurance Company and ors 2014(1) Law Herald (SC) 36.

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Learned counsel for the respondent submits that the appellants are not entitled to the interest as argued by them and the award has been passed as per law.

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MA No. 105/2016

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The appellants have been awarded Rs. 6,77,760/- along with interest calculated to the tune of Rs. 1,35,552/-. The appellants have been awarded interest from the date of filing of claim petition. Section 4A(3) of the Workmen’s Compensation Act, 193 ordains that where an employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner is to award simple interest thereon @ 12 % P.A on the amount due to the appellants.

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The amount is due to the appellants from the expiry of one month from the date of accident and consequently statutory interest also becomes due from the said date.

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In view of the above, the appellants shall be entitled to the interest from the expiry of one month from the date of accident and not from the date of filing of the claim application as held in the impugned award. The plea of the appellants that they are entitled to the interest from the date of accident stands rejected in view of the provisions of law.

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