Vijay Kumar Vs Prem Singh and Ors. — Punjab & Haryana HC (2026) — LawSathi Research

Vijay Kumar Vs Prem Singh and Ors. — Punjab & Haryana HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal disposed of with modifications to the impugned award: (i) interest @ 12% p.a. on the compensation amount from 30 days after the date of accident (i.e., 30 days after 20.08.1995) till actual realization, per Section 4A of the Workmen’s Compensation Act, 1923; (ii) penalty of 30% of the compensation awarded by the Commissioner with interest @ 7% per annum from the date of order till actual realization; (iii) penalty and interest thereon payable by the employer, while interest on the compensation @ 12% p.a. payable by the insurance company.

Issue for consideration

Whether the claimant is entitled to interest on the compensation amount and to a penalty under Section 4A of the Workmen’s Compensation Act, 1923, and at what rates and from what dates. +1 more

Court's answer

The claimant is held entitled to interest @ 12% p.a. on the compensation amount, commencing 30 days after the date of accident (i.e., 30 days after 20.08.1995) until the date of actual realization, in terms of Section 4A of the Workmen’s Compensation Act, 1923.

Ratio / Principle

The claimant is also entitled to a penalty of 30% of the compensation awarded by the Commissioner, along with interest @ 7% per annum from the date of order till the date of actual realization.

Key takeaways

The penalty awarded, along with the interest accrued thereon, shall be paid by the employer and not by the insurance company.ratio¶27
The interest awarded on the compensation @ 12% p.a. shall be paid by the insurance company.ratio¶27

Detailed headnote1 paragraphs

FAO-1732-2002 (O&M), High Court of Punjab and Haryana at Chandigarh, decided 28.04.2026 by Pankaj Jain, J. (oral). Condonation of 64 days' delay in filing allowed (CM-6584-CII-2002). The appeal against the award passed by the Commissioner was disposed of with the following modifications: (i) the claimant is held entitled to interest @ 12% p.a. on the compensation amount for the period commencing 30 days after the date of accident, i.e., 30 days after 20.08.1995, till actual realization, in terms of Section 4A of the Workmen's Compensation Act, 1923 ('the 1923 Act'); (ii) the claimant is also entitled to penalty of 30% of the compensation awarded by the Commissioner, along with interest @ 7% per annum from the date of order till actual realization; (iii) the penalty and the interest accrued thereon are payable by the employer and not by the insurance company, whereas the interest on the compensation @ 12% p.a. is payable by the insurance company.

FAO-1732-2002 (O&M)

223 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

FAO-1732-2002 (O&M) Date of decision : 28.04.2026

Vijay Kumar ….Appellant

Versus

Prem Singh & ors. ….Respondents

CORAM: HON’BLE MR. JUSTICE PANKAJ JAIN

Present : - Mr. Varun Sharma, Advocate for Mr. Rakesh Nagpal, Advocate for the appellant.

Mr. V.K.Garg, Advocate for respondent No.3.

PANKAJ JAIN, J.(ORAL)

CM-6584-CII-2002

This is an application seeking condonation of delay of 64 days in

filing the present appeal.

For the reasons recorded in the application, this Court is satisfied that the applicant-appellant has shown sufficient cause to condone the delay in filing the appeal.

Application is allowed. Delay of 64 days in filing the appeal is

condoned.

Main case

1 The present appeal is disposed off with the following

modification in the impugned award passed by the Commissioner :-

POOJA SHARMA 2026.04.30 16:06 I attest to the accuracy and integrity of this document

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FAO-1732-2002 (O&M)

(i) The c laimant is held entitled for interest @ 12% p.a. on the compensation amount for the period commencing from 30 days after the date of accident, i.e. 30 days after 20.08.1995, till the date of actual realization of the compensation amount in terms of Section 4A of the Workmen’s Compensation Act, 1923 (for short, ‘the 1923 Act’).

(ii) The claimant shall also be entitled for penalty which shall be 30% of the compensation awarded by the Commissioner along with interest @7% per annum from the date of order till the date of actual realization.

(iii) The penalty awarded along with the interest accrued thereon shall be paid by the employer and not by the insurance company. The interest awarded on the compensation @ 12% p.a. shall be paid by the insurance company.

( PANKAJ JAIN ) 28.04.2026 JUDGE Pooja Sharma-I Whether speaking/reasoned: Yes/No Whether reportable: Yes/No

POOJA SHARMA 2026.04.30 16:06 I attest to the accuracy and integrity of this document

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