Allahabad HC Explains From When Interest under Workmen Compensation Act Shall Be Given

On Tuesday, the Allahabad High Court delivered a Judgment, where the issue was 

Whether default of employer in paying due compensation under the Workmen’s Compensation Act, 1923 within one month from the date it fell due, entitles the claimant to 12% interest over the entire amount assessed as compensation in Claims proceeding under Section 4A of the Act and from what date?

Hon’ble Justice Dr. K.J.Thaker referred to the Judgment of Allahabad High Court in the case of Sanju Kushwah Vs. Vimal Kumar Verma and another, wherein the Court had held that in case of default of employer in payment of compensation under the Workmen Compensation Act within one month of accident, the employee is liable to be paid compensation with interest from the date of completion of one month period.

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In view of the above the Allahabad High Court partly allowed the Appeal and modified the Judgment and Award of the Commissioner to the extent that the insurance company shall deposit the amount with interest from one month from the date of the accident, i.e. 3.12.2017.

The Court further pulled up the Employee Compensation Commissioner, observing:

Despite directions of this Court, it appears that the learned Commissioner is not following the dictate of the legislation. Hence, explanation of the learned Commissioner be called for as to why without assigning reasons, she had granted interest from the date of order.

Case Details:

Coram: Hon’ble Dr Justice K.J. Thaker

Case No:  FIRST APPEAL FROM ORDER No. – 1596 of 2020

Appellant :- Shri Balak Ram

Respondent :- National Insurance Company Ltd. And Another

Counsel for Appellant :- Sanjay Singh,Amrendra Nath Rai

Counsel for Respondent :- Radhey Shyam,Pankaj Rai

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