The Divisional Railway Manager through Authorized Signatory Niraj Kumar v. Fulwa Devi
Employees Compensation Act, 1923 – Sections 4A(3)/4A(3)(a) and 30(1)(aa) – Delayed payment of compensation
Case brief
What is this about?
M.A. No.36 of 2023, High Court of Jharkhand at Ranchi (Rajesh Kumar, J., decided 02.09.2024): Divisional Railway Manager, Dhanbad Division appealed under Section 30(1)(aa) E.C. Act against Labour Court-cum-E.C. Commissioner, Dhanbad order dated 07.12.2022 awarding interest of Rs.2,56,792/- and penalty of Rs.1,28,396/- (total Rs.3,85,188/-) under Section 4A(3) for delay of 2 years 11 months 29 days in depositing Rs.7,13,960/- compensation payable after death in employment on 17.02.2018 of a Mate (employee no.27309420095). Court held 12% interest with penalty follows default beyond one month; no justification for delay; appeal dismissed.
What did the court decide?
Under Section 4A(3) of the E.C. Act, where there is default in payment of compensation within one month from the due date, the employer is liable for interest at the rate of 12% with penalty.