# Sri Sanju Kushwaha /Claimant v. Sri Vimal Kumar Verma & Anr - **Citation:** (2021) 1 ILRA 219 - **Court:** High Court of Judicature at Allahabad - **Decided:** 2020-12-03 - **Case number:** FAFO No. 1553 of 2020 - **Bench:** Dr. Kaushal Jayendra Thaker - **Source:** https://unisonlegal.in/judgment/allahabad-high-court/sri-sanju-kushwaha-claimant-v-sri-vimal-kumar-verma-anr-45986 - **Pages:** 3 ## Headnote Law - Employees' Compensation Act (8 of 1923) - Section4A - Interest - Where any employer is in default in paying the compensation due under the Act within one month from the date it fell due, the Commissioner shall direct that the employer shall, pay simple interest at the rate of twelve per cent - Issue - Whether Assistant Labour Commissioner can award interest less than what the statute has fixed, namely, 12% - No - Court deprecated the practice of grant of interest less than what is specific under the statute (Para 4) B. Civil Law - Employees' Compensation Act (8 of 1923)- Section 4A - Interest - Issue - when the interest becomes due and from whom - Held - it is for the Insurance Company to pay the interest - claimant becomes entitled to interest within a period of one month from the date the amount accrues to him (Para 5) Accident took place, i.e., 25.10.2017 & the owner who was insured by the respondent did not make the payment - Commissioner, Workmen's Compensation awarded a sum of Rs.6,24,000/- & ordered if within 30 days the Insurance Company does not deposit amount, they shall deposit the amount with interest at the rate of 7 per cent - Held - If the Insurance Company has not yet deposited the amount, it shall deposit the amount with interest at the rate 220 INDIAN LAW REPORTS ALLAHABAD SERIES of 12% from one month from the date of accident, i.e., 25.11.2017 Partly Allowed. (E-4) List of Cases cited :- ## Text 1 All. Sri Sanju Kushwaha Vs. Sri Vimal Kumar Verma & Anr. 219 claimant for any financial year exceeds Rs.50,000/-, insurance company/owner is/are entitled to deduct appropriate amount under the head of 'Tax Deducted at Source' as provided u/s 194A (3) (ix) of the Income Tax Act, 1961 and if the amount of interest does not exceeds Rs.50,000/- in any financial year, registry of this Tribunal is directed to allow the claimant to withdraw the amount without producing the certificate from the concerned Income- Tax Authority. The aforesaid view has been reiterated by this High Court in Review Application No.1 of 2020 in First Appeal From Order No.23 of 2001 (Smt. Sudesna and others Vs. Hari Singh and another) while disbursing the amount. 16. In view of the above, the appeal is partly allowed. Judgment and award passed by the Tribunal shall stand modified to the aforesaid extent. Record and proceedings be sent to the Tribunal. A copy of this order be forwarded to the Tribunal concerned for knowledge. 17. This Court is thankful to both the learned Advocates for getting this matter disposed of during this pandemic. ---------- (2021)01ILR A219 APPELLATE JURISDICTION CIVIL SIDE DATED: ALLAHABAD 03.12.2020 BEFORE THE HON'BLE DR. KAUSHAL JAYENDRA THAKER, J. FAFO No. 1553 of 2020 Sri Sanju Kushwaha ...Appellant/Claimant Versus Sri Vimal Kumar Verma & Anr. ...Respondents/Opposite Parties Counsel for the Appellant: Sri Shreesh Srivastava Counsel for the Respondents: Sri Sushil Kumar Mehrotra, Sri Sushil Kumar Mehrotra A. Civil Law - Employees' Compensation Act (8 of 1923) - Section4A - Interest - Where any employer is in default in paying the compensation due under the Act within one month from the date it fell due, the Commissioner shall direct that the employer shall, pay simple interest at the rate of twelve per cent - Issue - Whether Assistant Labour Commissioner can award interest less than what the statute has fixed, namely, 12% - No - Court deprecated the practice of grant of interest less than what is specific under the statute (Para 4) B. Civil Law - Employees' Compensation Act (8 of 1923)- Section 4A - Interest - Issue - when the interest becomes due and from whom - Held - it is for the Insurance Company to pay the interest - claimant becomes entitled to interest within a period of one month from the date the amount accrues to him (Para 5) Accident took place, i.e., 25.10.2017 & the owner who was insured by the respondent did not make the payment - Commissioner, Workmen's Compensation awarded a sum of Rs.6,24,000/- & ordered if within 30 days the Insurance Company does not deposit amount, they shall deposit the amount with interest at the rate of 7 per cent - Held - If the Insurance Company has not yet deposited the amount, it shall deposit the amount with interest at the rate 220 INDIAN LAW REPORTS ALLAHABAD SERIES of 12% from one month from the date of accident, i.e., 25.11.2017 Partly Allowed. (E-4) List of Cases cited :- 1. Oriental Insurance Company Vs Siby George & ors. 2012(4) T.A.C. 4 (SC) 2. North East K.R.T.C. Vs Smt. Sujatha C.A No. 7470 of 2009 Dt 2.11.2018 3. Smt. Surekha & ors .Vs B.M. National Insurance Comp. Ltd Civil Appeal No. 10018 of 2017 (Delivered by Hon'ble Dr. Kaushal Jayendra Thaker, J.) 1. Heard Sri Shreesh Srivastava, learned counsel for the appellant and Sri S.K. Mehrotra, learned counsel for the respondents. 2. Sri A.K. Verma, Commissioner, Workmen's Compensation Act 1923/Assistant Labour Commsioner, Kanpur Region, Kanpur on 15.7.2020 has awarded a sum of Rs.6,24,000/- and has considered the application as if it is under the Motor Vehicles Act. He has passed an order which is conditional in nature that if within 30 days the Insurance Company does not deposit amount, they shall deposit the amount with interest at the rate of 7 per cent. 3. Fact that the appellant-claimant was an employee is not in dispute; vehicle caused him injuries which can be said to be arising out of his employment is not in dispute and; the Insurance Company having insured the vehicle with the workmen is not in dispute, hence, no facts are mentioned except that the accident occurred on 25.10.2017 and no technical pleas are raised. Compensation awarded is not in challenge. 4. The two questions of law which arise for consideration are-firstly that can Assistant Labour Commissioner award interest less than what the statute has fixed, namely, 12% under the provisions 4-A of the Workmen's Compensation Act (hereinafter referred to as 'the Act')? A similar issue has arisen before this Court where the Court has deprecated the practice of grant of interest less than what is specific under the statute. The reason being the word usef 'shall' which has been interpreted by the Courts time and again. The second question arises when the interest becomes due and from whom? Of course, as per the Judgement, it is for the Insurance Company to pay the interest as no other technical defects, as can be raised under the Employees Compensation Act, are raised. 5. I am pained to pen down that the Workmen's Commissioner in Uttar Pradesh are time and again to be conveyed that they are supposed to follow the statute under which they are functioning. I am supported in my view by the Judgments rendered by Supreme Court in Oriental Insurance Company Vs. Siby George and others, 2012(4) T.A.C. 4 (SC); Civil Appeal No. 7470 of 2009 North East Karnataka Road Transport Corporation Vs. Smt. Sujatha decided on 2.11.2018; and Civil Appeal No. 10018 of 2017, Smt. Surekha and others Vs. the Branch Manager, National Insurance Company Ltd. decided on 3.8.2017 which holds that Insurance Company has to be made liable and further the relevant date from when the interest would be payable is decided therein, namely, one month of the date, it accrues. 1 All. National Insurance Company Ltd. Vs. Smt. Kiran & Ors. 221 6. Learned counsel Sri S.K. Mehrotra tried to point out that the Judgment is just and proper, however, I am not convinced as the statute demands that the claimant becomes entitled to interest within a period of one month from the date the amount accrues to him. In our case, the amount accrued to him one month after the accident took place, i.e., 25.10.2017 and the owner Vimal Kumar Verma, who was insured by the respondent no.2 did not make the payment. 7. In view of the aforesaid, Judgment and award impugned herein is modified. If the Insurance Company has not yet deposited the amount, it shall deposit the amount with interest at the rate of 12% from one month from the date of accident, i.e., 25.11.2017. 8. It goes without saying that once the amount is deposited, the Tribunal shall disburse the same and the Insurance company shall not deduct TDS as against the settled principles of law. 9. The appeal is, therefore, partly allowed. 10. This Court is thankful to Sri S.K. Mehrotra for ably assisting this Court and Sri Vidya Kant Shukla, for acting as Amicus Curiae for pointing out the Judgments on the matter. ---------- (2021)01ILR A221 APPELLATE JURISDICTION CIVIL SIDE DATED: ALLAHABAD 13.10.2020 BEFORE THE HON'BLE VIVEK KUMAR BIRLA, J. FAFO No.- 1615 of 2017 National Insurance Company Ltd. ...Appellant Versus Smt. Kiran & Ors. ...Respondents Counsel for the Appellant: Sri Arvind Kumar Counsel for the Respondents: Sri Chandra Bhan Gupta, Sri Vidya Kant Shukla Civil Law - Motor Vehicles Act (59 of 1988)- Section 168 - Compensation - Computation - Insurance company challenged Motor Accident Claims Tribunal award on the ground of excessive compensation awarded to claimants - Deceased aged about 35 years - earned Rs.15,000/- per month as self employed tailor working from home - Tribunal awarded 50% towards future prospects & awarded Rs. 1 lakh each to three persons towards love and affection - Held - in view of the judgment of the Hon'ble Apex Court in the case of Sarla Verma and Pranay Sethi future prospects reduced from 50% to 40% - Conventional Head which includes loss of love & affection and funeral expenses as per Pranay Sethi modified to Rs 70,000/- (Para 15, 16) Partly allowed. (E-4) List of cases cited : 1. Sarla Verma Vs Delhi Transport Corporation (2009) 6 SCC 121 : 2009 (2) TAC 677 2. National Insurance Co. Ltd. Vs Pranay Sethi & 3 ors. (2017) 16 SCC 680 : 2017 (4) TAC 673