SHOBHA & ORS. versus THE CHAIRMAN, VITHALRAO SHINDE SAHAKARI SAKHAR KARKHANA LTD. & ORS.

SHOBHA & ORS. versus THE CHAIRMAN, VITHALRAO SHINDE SAHAKARI SAKHAR KARKHANA LTD. & ORS.

The liability to pay compensation arises from the date the deceased died (date of accident) and, consequently, interest under Section 4A(3)(a) accrues from that date; the High Court erred in applying the penalty provision (Section 4A(3)(b)) to limit the date from which interest runs. The High Court's order directing interest only from after one month of the Commissioner's order is quashed and set aside; the claimants are entitled to interest at 12% p.a. from the date of the incident (29.11.2009).

Parties
Appellants: Shobha & Ors.; Respondents: The Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Ltd. & Ors.
Jurisdiction
India
Judgment Date
11 March 2022
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal
Outcome
Appeal allowed
Legal Topics
Employees' Compensation Act, 1923, Interest on Compensation, Penalty Under Section 4 a, Date From Which Interest Accrues
Labour Law Statutory Interpretation Employees' Compensation Act, 1923 Interest on Compensation Penalty Under Section 4 a Date From Which Interest Accrues

Case Brief

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Parties

Shobha & Ors.

Appellants

The Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Ltd. & Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 Whether interest under Section 4A accrues from the date the compensation fell due (date of death/accident) or from the date of the Commissioner's order
  2. 2 Whether the High Court erred in treating Section 4A(3)(b) (penalty) as determinative of the date from which interest under Section 4A(3)(a) is payable

Ratio Decidendi

The liability to pay compensation arises from the date the deceased died (date of accident) and, consequently, interest under Section 4A(3)(a) accrues from that date; the High Court erred in applying the penalty provision (Section 4A(3)(b)) to limit the date from which interest runs. The High Court's order directing interest only from after one month of the Commissioner's order is quashed and set aside; the claimants are entitled to interest at 12% p.a. from the date of the incident (29.11.2009).

Court Disposition

Appeal allowed

Orders

  • Impugned judgment and order of the High Court insofar as it directed that interest at 12% p.a. would be payable only from the period after expiry of one month from 25.01.2017 is quashed and set aside.
  • The appellants (original claimants) shall be entitled to interest at 12% p.a. on the amount of compensation as awarded by the Commissioner from the date of the incident, i.e., 29.11.2009.