This appeal challenged the denial of interest on compensation under the Employee's Compensation Act, 1923. The court held that interest is payable at 9% per annum from the date of the claim notice to the date of deposit or payment.
Appellant entitled to interest @ 9% p.a. from 8.10.1998 till date of deposit or payment.
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FAO No. 5491 of 2004
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In the High Court of Punjab & Haryana at Chandigarh
FAO No. 5491 of 2004 (O&M)
Date of decision : 23.5.2011
Nachhater Kaur
... Appellant
vs
Chand Khan and others
.... Respondents
Coram: Hon'ble Mr. Justice Rajesh Bindal
Present: Mr. P. S. Punia, Advocate, for the appellant.
Mr. Neeraj Khanna, Advocate, for the insurance company.
Rajesh Bindal J.
Challenge in the present appeal is to the award dated 21.5.2004 passed by the learned Commissioner under the Employee's Compensation Act, 1923 whereby the appellant was not granted interest on the amount of compensation assessed.
Learned counsel for the appellant submitted that the appellant should have been granted interest from the date of accident. In support of his argument, he relied upon judgment of Hon'ble the Supreme Court in N. Parameswaran Pillai and another vs Union of India and another 2002 (2) RCR (Civil) 597 and a decision of this court in Usha Rani vs Union of India 2004 (1) RCR (Civil) 676.
Learned counsel for the Insurance company could not dispute the proposition of law laid down in the aforesaid judgments. However, he submitted that the insurance company is not liable to pay any interest as the appellant herself has filed claim petition in the year 1998. The respondents were only informed on 8.10.1998 about the accident.
FAO No. 5491 of 2004
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Heard learned counsel for the parties and perused the paper-
book.
The issue regarding entitlement of interest to the claimants on the amount of compensation, has been gone into by this court in New India Assurance Company Limited vs Manphool Singh and others (2008-1) PLR 706, wherein following judgment of Hon'ble the Supreme Court in Pratap Narain Singh Deo vs Srinivas Sabata (1976) 1 SCC 289, it has been opined that the claimants shall be entitled to interest not from the date of order/award of the Commissioner, but on expiry of one month from the date of accident. However, in the present case, the appellant has given notice for claim only on 8.10.1998.
At the time of hearing, learned counsel for the insurance company has also not been able to point out any clause in terms of the policy which granted exemption to the appellant from liability from payment of interest on the amount of compensation. Reference can be made to judgment of Hon'ble the Supreme Court in Kamla Chaturvedi vs National Isurance Company Limited and others 2009 ACJ 115, wherein it was held that the Insurance company cannot avoid its liability to pay interest on the ground that there is no contract entered into by it with the insured for payment of interest as there is no exception stipulated in the policy for payment of interest by insurance company.
In view of the aforesaid judgments, it is directed that the appellant in the present case shall be entitled to interest @ 9% per annum on the amount of compensation awarded for the period commencing from 8.10.1998 till the same is deposited with the Commissioner or paid to the appellant whichever is earlier.
No other issue was raised.
Disposed of.
(Rajesh Bindal) Judge
23.5.2011 vs.
3 issues framed by the court
Whether the appellant is entitled to interest on compensation awarded by the Commissioner.
Whether the date of deprivation of interest starts from the date of claim notice or the date of accident.
Whether a policy clause absence exempts insurance company from paying interest.
Colour shows how this judgement treated each authority
N. Parameswaran Pillai and another vs Union of India and anotherRelied on¶16
N. Parameswaran Pillai and another vs Union of India and another
Usha Rani vs Union of IndiaRelied on¶16
Usha Rani vs Union of India
New India Assurance Company Limited vs Manphool Singh and othersRelied on¶22
New India Assurance Company Limited vs Manphool Singh and others (2008-1) PLR 706
Pratap Narain Singh Deo vs Srinivas SabataRelied on¶22
Pratap Narain Singh Deo vs Srinivas Sabata (1976) 1 SCC 289 · Who else cites this
Kamla Chaturvedi vs National Isurance Company Limited and othersRelied on¶23
Kamla Chaturvedi vs National Isurance Company Limited and others 2009 ACJ 115
1 provisions across 1 enactments
Nachhater Kaur
Chand Khan and others
Rajesh Bindal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
