1 2025:CGHC:39041 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 659 of 2022 1 - Shramik Dhawle @ Sunny Shri Ashok Rao Dhawle Aged About 38 Years R/o Awas Platpara, Gram Sonarpal, P.S. Bhanpuri, District Bastar Chhattisgarh. ... Appellant/Claimant versus 1 - Anil Kumar Sao S/o Shri Kanhaiya Sao, R/o Bhattipara, Bastar District Bastar Chhattisgarh. 2 - National Insurance Co. Ltd. Through Branch Manager, Branch Office Above Central Bank, Near R.M.S. Office, Jagdalpur District Bastar Chhattisgarh. ... Respondents (Cause title, as taken from Case Information System) For Appellant/Claimant For Respondent No.1 : : Ms. Harneet Kaur, Advocate appears on behalf of Mr. Anand Kumar Gupta, Advocate Mr. Arvind Prasad, Advocate For Respondent No.2 : Mr. G.V. Kutumba Rao, Advocate. (Hon’ble Shri Justice Naresh Kumar Chandravanshi) Order On Board 06/08/2025 1 Heard on I.A. No.01/2022, application for condonation of delay in filing the miscellaneous appeal. RUKHSAR BANO Digitally signed by RUKHSAR BANO Date: 2025.08.07 19:23:07 +0530 2 2 On due consideration and for the reason mentioned in the application, which is well supported by an affidavit, the same is allowed and delay of 26 days in filing instant appeal is condoned. 3 Also heard on admission. 4 This miscellaneous appeal is admitted for hearing on following substantial question of law:- “Whether, granting conditional interest that too of 10% from the date of claim is against the provision of Section 4A(3)(a) of the Employee’s Compensation Act, 1923?” 5 With the consent of the parties, the matter is heard finally. 6 This is a claimant’s appeal filed under Section 30 of the Employee’s Compensation Act, 1923 (henceforth referred to as ‘the Act, 1923’) against the order/award dated 28.01.2022 passed by Commissioner, Employee’s Compensation Act, Labour Court, Bastar at Jagdalpur, Chhattisgarh (henceforth referred to as ‘the Commissioner’) in Case No.59/2012/E.C.Act/ Non fatal, whereby the learned Commissioner has granted compensation in favour of the appellant/claimant to the tune of Rs.3,14,880/-, but granted conditional interest @ 10% per annum from the date of filing of claim application, if the same is not paid within a period of 45 days. 7 Learned counsel for the appellant would submit that, as per Section 4A(3)(a) of the Act, 1923, 12% interest is payable on the amount of compensation, that too, from the date it fell due i.e. from the date of accident. But, in instant case, learned Commissioner has granted conditional interest of 10% if the amount of compensation is not paid within a period of 45 days, that too, from the date of filing of claim application, which is against aforesaid provision. Hence, she prays that the instant appeal may be allowed and 12% 3 interest may be granted to the appellant/claimant on the amount of compensation from the date of accident. 8 Per contra, learned counsel appearing for the respondent No.2 - Insurance Company supported the impugned award. 9 Learned counsel appearing for the respondent No.1 also supported the impugned award. 10 I have heard learned counsel for the parties and perused the material available on record. 11 Provision for payment of interest on amount of compensation has been provided in Section 4A(3)(a) of the Employee's Compensation Act 1923. Section 4A(3) of the Act, 2023 runs as under:- "4A(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 percent 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; and (b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent of such amount by way of penalty: Provided that an order for the payment of penalty shall not 4 be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed.” 12 Rate of interest payable in the amount of compensation has already been provided in Section 4A(3)(a) of the Act, 1923. So far as starting point for payment of interest is concerned, this issue has further been considered by Hon’ble Apex Court in the case of Shobha Vs. The Chairman, Vitthal Rao Shinde in Civil Appeal No.1860 of 2022 decided by Hon'ble Apex Court on 11-03-2022, in which, it has been held that:- "Therefore, on the death of the employee/deceased immediately, the amount of compensation can be said to be falling due. Therefore, the liability to pay the compensation would arise immediately on the death of the deceased. Even as per Section 4A(2), in cases, where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the employee, as the case may be, without prejudice to the right of the employee to make any further claim. Therefore, the liability to pay the compensation would arise from the date on which the deceased died for which he is entitled to the compensation and therefore, the liability to pay the interest on the amount of arrears/compensation shall be from the date of accident and not from the date of the order passed by the Commissioner. ..." 13 This issue is no more res integra as Hon'ble the Supreme Court in case of Ajay Kumar Das Vs. Divisional Manager (2022 SCC OnLine SC 93) has reiterated the law that compensation is payable within one month from the date when it fell due. Hon'ble the Supreme Court in paragraph 5 & 6 has held 5 as under: "5. .......To set the record straight, the High Court has erred on merits as well. Section 4A of the Workmen's Compensation Act 1923 stipulates that the Commissioner shall direct the employer to pay interest of 12% or at a higher rate, not exceeding the lending rates of any scheduled banks specified, if the employer does not pay the compensation within one month from the date it fell due. In Saberabibi Yakubhai Shaikh v. National Insurance Co. Ltd. [(2014) 2 SCC 298], this Court held that interest shall be paid on the compensation awarded from the date of the accident and not the date of adjudication of the claim in view of the decision of this Court in Oriental Insurance Co. Ltd. v. Siby George [(2012) 12 SCC 540] where it was held that compensation would fall due from the date of the accident. Further, in the recent decision in P. Meenaraj v. P. Adigurusamy [Civil Appeal No. 209/2022 decided on 6-1- 2022, this Court reiterated that the applicant is entitled to interest from the date of accident while rejecting the submission that the award of interest should be after the expiry of 30 days from the date of accident. Thus, there was no legal basis for the High Court to delete the order of payment of interest. 6. For the above reasons, we set aside the direction contained in the order of the High Court dated 11 April 2018 by which the order for the payment of interest was deleted. The order for the payment of interest which was issued by the Additional Labour Commissioner-cum-Commissioner, Workmen Compensation shall together with the award of compensation stand restored." 14 In view of the aforesaid law laid down by Hon’ble Apex court, it is abundantly clear that, award of compensation falls due on the date of 6 occurrence/ accident and computation of interest begins from the date, it fell due i.e. the date of accident and not from the date of award, till its realization. In instant case, learned Commissioner has granted interest from the date of filing of claim application, if amount of compensation is not paid within 45 days. Such condition cannot be imposed by the Commissioner, as claimant has statutory right to get interest on the amount of compensation at the rate of 12% per annum from the date of occurrence of accident till its final payment. As such, the claimant is entitled to get interest at the rate of 12 % per annum from the date of accident i.e. 08.10.2008 till final payment of award amount. Accordingly, question of law is answered in affirmative form i.e. in favour of the claimant and against the respondents. 15 In view of above discussion, the instant appeal is allowed. The impugned award is modified to the extent of payment of simple interest at the rate of 12% per annum from the date of accident i.e. 08.10.2008 till the date of actual payment on the original award of Rs.3,14,880/-. It is further observed that respondent No.2 -Insurance Company shall pay remaining interest within further period of 30 days from today. Rest of the terms of the impugned judgment shall remain intact. 16 Accordingly, this miscellaneous appeal is allowed to the extent indicated here-in-above. 17 Pending interlocutory, if any, application(s) stands disposed of. Sd/- (Naresh Kumar Chandravanshi) Judge Rukhsar