Full Judgment
V.M. Jain, J.
1. This appeal has been filed against the order dated 2.3.2004 passed by the Commissioner under the Workmen's Compensation Act, 1923 (hereinafter referred to as 'the Act') vide which compensation was awarded to the claimants without awarding any interest thereon to them.
2. The facts which are necessary for the decision of the present appeal, are that the claimants had filed a petition under the provisions of the Act for the grant of compensation for the death of Jagan Nath deceased while under the employment of the respondents. The case was contested by the respondents. After hearing both sides, the Commissioner under the Act found that Jagan Nath deceased was an employee of the respondents duly covered as Workmen under the aforesaid Act and that he died while discharging his dues and the applicants who were dependent on the deceased are entitled to compensation. It also found that the deceased was aged 31 years at the time of his death and was getting Rs. 1,650/ - per month. Resultantly, a sum of Rs. 1,69,933/- was awarded to the claimants as compensation. However, no order was passed with regard to the grant of interest on the aforesaid amount of compensation. This necessitated the filing of the present appeal by the claimants, claiming interest on the aforesaid amount of compensation.
3. After hearing the learned Counsel for the parties and perusing the record, in my opinion, the present appeal must be allowed and the order dated 2.3.2004 passed by the Commissioner under the Act must be modified. Under Section 4-A(3) (a) of the Act, it is provided that the employer shall, in addition to the amount of arrears, pay simple interest thereon @ 12% per annum on the amount due. A Division Bench of the Kerala High Court, in the case of Alex v. Chacko : 2004(1)KLT914 , had held that the due date was the date of accident as held by the Hon'ble Supreme Court in Partap Narain Singh Deo v. Srinivas Sabata 1976 ACT 141 (SC), and as such under the provisions of the Act, the claimants were entitled to 12% interest from the date of accident till the deposit of compensation. It was further held that the payment of statutory interest was mandatory. Keeping in view the law laid down in the above-mentioned authorities and the provisions of Section 4-A(3) (a) of the Act, in my opinion, the Commissioner under the Act was duty bound to award interest to the claimants, since respondents had failed to pay the compensation amount to the claimants within one month from the date the compensation amount fell due i.e. within one month from the date of accident.
4. In view of the above, the present appeal is allowed, the order dated 2.3.2004 passed by the Commissioner under the Act is modified and it is directed that in addition to the amount of Rs. 1,69,933/-, which was awarded to the claimants as compensation, the claimants shall also be entitled to simple interest on the aforesaid amount of Rs. 1,69,933/- @ 12% per annum from the date of accident till payment and the respondents were liable to pay the same to the claimants.
Announced.