Allowed¶66

Sri Devaraju M v. Vs Sri a Munishamyreddy

Karnataka HC24 Jul 2026MFA/8113/2024

Case brief

AI extract

What is this about?

MFA No. 8113 of 2024, High Court of Karnataka at Bengaluru, Shivashankar Amarannavar J, decided 24-07-2026. Enhancement of interest in employees compensation claim (E.C.A No. 4/2021, Kolar; accident 08.02.2021) against United India Insurance Co. Ltd.; substantial question on whether Commissioner was justified in awarding 6% instead of 12% interest under Section 4A(3) of the Employees' Compensation Act, 1923; court held 12% simple interest payable from 08.03.2021 (one month after accident) on Rs.19,93,620/- till payment/deposit; appeal allowed.

What did the court decide?

Appeal allowed; appellants entitled to interest at 12% per annum on Rs.19,93,620/- from 08.03.2021 till date of payment/deposit (enhancement from 6%) ¶66

Sri Devaraju M v Vs Sri a Munishamyreddy — Karnataka HC (2026) — LawSathi Research

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HC-KAR NC: 2026:KHC:38357 MFA No. 8113 of 2024

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CNR: KAHC010719042024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 24^TH DAY OF JULY, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR MISCELLANEOUS FIRST APPEAL NO. 8113 OF 2024

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(ECA )

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BETWEEN:

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SRI DEVARAJU M V W/O ERAPPA, AGED ABOUT 49 YEARS.

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SMT. LAKSHMAMMA, W/O DEVARAJ AGED ABOUT 44 YEARS,

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BOTH ARE R/O MINDAHALLI VILLAGE, BAVANAHALLI POST, MALUR TALUK, KOLAR DISTRICT.

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Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA

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PRESENTLY R/AT SHARADHA TALKIES ROAD, KATARIPALYA, KOLAR

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…APPELLANTS

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(BY SRI. KAILAS SHANKAR P S., ADVOCATE)

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AND:

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SRI A MUNISHAMYREDDY S/O APPE REDDY, MAJOR, R/AT KARINAYAKANAHALLI VILLAGE, MALUR TALUK, KOLAR DISTRICT.

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2 - NC: 2026:KHC:38357 MFA No. 8113 of 2024

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HC-KAR

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CNR: KAHC010719042024

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THE MANAGER

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THE UNITED INDIA INSURANCE CO. LTD., REGIONAL OFFICE, NO.18, KRISHI BHAVAN, 5^TH FLOOR, OPP. HUDSON CIRCLE, NRUPATHUNGA ROAD, BANGALORE - 560001

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…RESPONDENTS

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(BY SRI. M S SRIRAM, ADVOCATE FOR R2 V/O DATED 09.07.2026, NOTICE TO R1 D/W)

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THIS MFA IS FILED UNDER SECTION 30(1) OF EMPLOYEES COMPENSATION ACT, 1923 AGAINST THE JUDGMENT AND AWARD DATED 07.08.2024 PASSED IN E.C.A NO. 4/2021 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE AND COMMISSIONER FOR EMPLOYEES COMPENSATION, JMFC, KOLAR, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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

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CORAM: HON'BLE MR. JUSTICE SHIVASHANKAR AMARANNAVAR

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ORAL JUDGMENT

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Heard the learned counsel for the appellants and the

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learned counsel for respondent No.2/Insurer.

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This appeal is admitted to consider the following

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substantial question of law:

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3 - NC: 2026:KHC:38357 MFA No. 8113 of 2024

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HC-KAR

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CNR: KAHC010719042024

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Whether the Commissioner was justified in awarding interest at the rate of 6% instead of 12% from one month of date of accident?

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Heard the learned counsel for the appellants

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and the learned counsel for respondent No. 2–Insurer on the above substantial question of law.

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On the claim petition filed by the appellants, the

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III Additional Senior Civil Judge and Commissioner for Employees' Compensation, Kolar (for short, "the Commissioner"), by the impugned order, has awarded compensation of Rs.19,93,620/- with interest at the rate of 6% per annum from the date of the accident till the date of realization.

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The accident occurred on 08.02.2021.

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Learned counsel for the appellants contends

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that, in terms of Section 4A(3)(a) of the Employees' Compensation Act, 1923, interest on the compensation awarded is payable at the rate of 12% per annum from one month from the date of the accident. He submits that

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HC-KAR

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NC: 2026:KHC:38357 MFA No. 8113 of 2024

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CNR: KAHC010719042024

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the Commissioner has erred in awarding interest at the

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rate of 6% per annum from the date of the accident.

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7. Sub-Section 3 of Section 4A of Employees'

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Compensation Act, 1923 reads as under:

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"(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall— (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent. per annum or at such higher, rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government by notification in the Official Gazette, on the amount due;"

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Perusal of Sub-Section 3 of Section 4A of the

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Employees' Compensation Act, 1923 indicate that the rate of interest payable on the compensation awarded is 12% per annum and it is payable after one month from the date it fell due. The accident had occurred on 08.02.2021. The amount of compensation is fell due on the date of accident i.e. 08.02.2021. One month from the date of accident is 08.03.2021. The interest payable on the compensation

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awarded is simple interest at the rate of 12% per annum.

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HC-KAR

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NC: 2026:KHC:38357 MFA No. 8113 of 2024

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CNR: KAHC010719042024

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The Commissioner was not justified in awarding interest at

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the rate of 6% per annum.

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In view of the above, the claimants are entitled to interest at the rate of 12% per annum on Rs.19,93,620/- from 08.03.2021 till payment.

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In view of the above point, the following:

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ORDER

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i) The appeal is allowed. ii) The appellants are entitled to interest at the rate of 12% per annum on Rs.19,93,620/from 08.03.2021 till date of payment/deposit.

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Sd/(SHIVASHANKAR AMARANNAVAR) JUDGE

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BKM List No.: 1 Sl No.: 37

Sri Devaraju M v. Vs Sri a Munishamyreddy

Case brief

What is this about?

What did the court decide?

Sri Devaraju M v. Vs Sri a Munishamyreddy

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

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