1 2025:CGHC:53496 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 33 of 2020 1 - Domu Ram Baghel @ Domu S/o Late Ramu Baghel Aged About 45 Years R/o Village Chamiya, Temruguda, Police Station - Bhanpuri, District - Bastar Chhattisgarh. 2 - Smt. Padma W/o Domu Ram Baghel Aged About 42 Years. Both R/o Village Chamiya, Temruguda, Police Station - Bhanpuri, District Bastar Chhattisgarh. ... Appellants. versus 1 - R. Dhanashekaran S/o Shri Raju, R/o 172, Malaikavalar, Kovil Building, Valur Road, Tiruchangod, District - Namakal ( Tamilnadu ). 2 - The National Insurance Company Limited, Tiruchangod, Opposit Bus Stand, District - Namakal ( Tamilnadu ), National Insurance Company Limited, Through Branch Manager, Upper Floor To Central Bank, Near R. M. S. Office, Jagdalpur, District - Bastar Chhattisgarh. .. Respondents. For Appellants : Shri Praveen Dhurandhar, Advocate. For Respondent No.2 : Shri Anil Gulati, Advocate. AVINASH SHARMA Digitally signed by AVINASH SHARMA Date: 2025.11.03 17:17:40 +0530 2 Hon'ble Shri Justice Deepak Kumar Tiwari Judgment on Board 03/11/2025 1. With the consent of the parties, the matter is heard finally. 2. This Appeal preferred under Section 30 of the Employee’s Compensation Act, 1923 (hereinafter “the Act, 1923”) was admitted for hearing on the following substantial question of law:- “Whether finding of the Commissioner for Employees’ Compensation directing for payment of interest @ of 12 % per annum conditionally by ignoring the mandatory provisions prescribed under clause (a) of sub-section 3 of Section 4-A of the Employees’ Compensation Act, 1923, is perverse?” 3. At the outset, learned counsel for the appellants submits that while passing the award/judgment dated 20.09.2019, learned Commissioner had imposed condition for grant of interest on the awarded sum that after the expiry of 45 days from the date of judgment, if the amount is not deposited by the Insurer, then simple interest @ 12 % per annum shall be reckoned. He submits that the aforesaid condition of the learned Commissioner while awarding the interest on the awarded sum is contrary to the law as per Section 4-A (3) of the Act, 1923, as the same has been explained in the matter of Pratap Narain Singh Deo vs. Srinivas Sabata {(1976) 1 SCC 289}, in a four-Judge Bench of the Hon’ble Supreme Court, wherein, it has been held that an employer becomes liable to pay compensation as soon as the personal injury is caused to the workman in the accident which arouse out of and in the course of employment. It was accordingly held that it is the date of 3 accident and not the date of adjudication of the claim, which is material and the same has been followed in the matter of North East Karnataka Road Transport Corporation vs. Sujatha {(2019) 11 SCC 514}. He lastly prays to allow the Appeal. 4. Shri Anil Gulati, learned counsel for Respondent No.2 would also not dispute the aforesaid legal proposition. 5. Section 4A of the Act, 1923 deals with the provisions with regard to the compensation to be paid when due and penalty for default. For the sake of brevity, the said Section reads thus: “4A. Compensation to be paid when due and penalty for default.- (1) Compensation under section 4 shall be paid as soon as it falls due. (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. (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 per cent. 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 4 (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 be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed. Explanation.- For the purposes of this sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934. (2 of 1934) [(3A) The interest and the penalty payable under sub- section (3) shall be paid to the employee or his dependant, as the case may be.]” 6. From reading of the aforesaid provision, it is explicit that under Section 4, the compensation shall be paid as soon as it falls due and the claimants shall be entitled to interest @ 12% per annum as per Section 4A(3)(a) within 1 month from the date it fell due. So, the liability to pay interest on the amount of compensation due and payable would be under Section 4-A(3)(a) that the employer shall pay, in addition to the amount of the arrears, simple interest thereon @ 12% per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified on the amount due. 7. In view of the aforesaid legal provisions and also taking into consideration the judgment rendered by the Hon’ble Supreme Court in the matter of Pratap Narain Singh Deo (supra) and North East Karnataka Road Transport Corporation (supra), imposition of 5 condition by the learned Commissioner for grant of interest is in the teeth of law and the learned Commissioner could not have imposed such conditions while passing the judgment. So, this Court is of the opinion that interest @ 12 % per annum shall be reckoned after the expiry of 1 month from the date of accident i.e. 29.12.2010 on the awarded sum of compensation to the tune of Rs.5,53,425/- which was directed to be deposited by the Insurer. 8. Accordingly, Respondent No.2/Insurer is directed to deposit the sum as awarded by the learned Commissioner along with interest, as per the revised calculation to be made pursuant to the direction given by this Court in the preceding paragraph of this judgment and the difference of the amount, if any, shall be paid within a period of 45 days from the date of this judgment. 9. Substantial question of law is answered in affirmative in favour of the appellants. 10.Accordingly, the present Appeal is allowed. 11.In facts and circumstances of the case, there shall be no order as to costs. Sd/- (Deepak Kumar Tiwari) Judge Avinash