United India Insurance Co. Ltd., Vs Vanajakshi

THIS MFA IS FILED UNDER SECTION 30(1) OF THE WORKMENS' COMPENSATION ACT, PRAYING TO CALL FOR THE RECORDS CONNECTED WITH CASE NO. ECA NO.1/2015 ON THE FILE OF THE COURT OF THE SENIOR CIVIL JUDGE AND ADDITIONAL MACT, SIRA, EXAMINE THE SAME AND SET ASIDE THE JUDGMENT DATED 14.09.2017 IN THE INTEREST OF JUSTICE.

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NC: 2026:KHC:6428 MFA No. 4425 of 2018

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HC-KAR

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THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MS. JUSTICE TARA VITASTA GANJU

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ORAL JUDGMENT

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The present appeal has been filed seeking to challenge the judgment and award dated 14.09.2017 in E.C.A No.1/2015 passed by the Senior Civil Judge and Additional MACT, Sira [hereinafter referred to as the “Impugned Award”] under Section 30(1) of the Employee's Compensation Act, 1923 [hereinafter referred to as the “E.C. Act”]. By the Impugned Award, respondent Nos.1 to 5/claimants were awarded a compensation in a sum of Rs.9,35,910/- along with interest at the rate of 9% per

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annum from the date of filing of petition till its entire realization.

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This Court, after briefly hearing the matter on 06.01.2026, had passed the following order:

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"1. The challenge by the appellant in the present appeal is to the award of Rs.9,000/- (Rupees Nine

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NC: 2026:KHC:6428 MFA No. 4425 of 2018

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HC-KAR

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Thousand) per month in the form of wages to be paid for calculation of compensation in the award.

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2. It is the contention of learned counsel for the appellant that wages should have been taken at Rs.8,000/- (Rupees Eight Thousand) per month as per the Central Government Notification.

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3. Learned counsel for the appellant requests for some time to place the relevant Notification on record.

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4. Learned counsel for the respondent submits that he is entitled to 12% interest and not 9% as is awarded by the Trial Court in view of Section 4A(3)(a) of the Employees Compensation Act, 1923.

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5. Both the parties requests for some time to make their submissions in this behalf."

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Today, learned counsel for the parties, on

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instructions, submit that the parties have arrived at a settlement in the matter. Learned counsel for the appellant/Insurance Company submits that in terms of the settlement, the quantum of compensation in the form of wages may be taken at Rs.8,000/- (Rupees Eight Thousand) per month instead of Rs.9,000/- (Rupees Nine Thousand) per month taken by the learned Tribunal.

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Since the accident happened in the year 2014, learned counsel for the appellant submits that, relying on

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NC: 2026:KHC:6428 MFA No. 4425 of 2018

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HC-KAR

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the Government Notification, the wage ceiling was Rs.8,000/- per month.

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Learned counsel for the respondents fairly concedes to the same.

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On the aspect of interest @ 9% per annum awarded by the Tribunal, the learned counsel for the respondent submits that the statutory interest in terms of Section 4A(3)(a) of the Employee's Compensation Act, 1923 is to be paid @ 12% per annum and that it is to be paid within one month from the date of the accident.

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In this behalf, reliance is placed upon the judgment

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of the Hon'ble Supreme Court in Oriental Insurance

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Co.Ltd. vs. Siby George & Ors.¹

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Accordingly, the compensation to be awarded to the claimants is recalculated, taking the monthly income as Rs.8,000/-, deducting 50%, as the death has arisen on

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1 AIR 2012 SC 3144

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NC: 2026:KHC:6428 MFA No. 4425 of 2018

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HC-KAR

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account of the injury and applying the relevant factor of

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207.98 (since the deceased was 30 years old and survived

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by wife, children and parents) which amount is as follows:

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“Rs.8,000/- x 50% x 207.98 = 8,31,920/-”

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Thus, the claimants are entitled to compensation in a sum of Rs.8,31,920/- as against a sum of

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Rs.9,35,910/- which was awarded by the learned Tribunal.

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Accordingly, the Impugned Award is modified to Rs.8,31,920/- which was awarded by the Learned Trial Court.

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(i) The respondent Nos.1 to 5/claimants are at liberty to withdraw the amount of Rs.8,31,920/- along with the statutory interest thereon @ 12% p.a., calculated one month after the date of the accident and the balance amount including accrued interest, shall be refunded to the appellant- Insurance Company.

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HC-KAR

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(ii) The appellant/Insurance Company shall file an appropriate application before the Tribunal to withdraw the excess amounts deposited, in terms of the judgment passed by this Court.

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(iii) Let a decree be drawn up in terms of the modified award.

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(iv) The Registry is directed to ensure that a copy of the judgment passed today is sent to the respondents by registered mail/speed post.

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