- (1.) THOUGH the ease was listed for consideration of the application for vacation of stay, however, keeping in view the nature of the controversy, this matter has been heard for final disposal with the concurrence of counsel for the parties.
(2.) INSURANCE company, appellant herein, has challenged award dated 28. 2. 1997 passed by the Commissioner under the workmen's Compensation Act, 1923, Hisar (hereinafter referred to as 'the commissioner') awarding the compensation to the tune of Rs. 4,72,944, interest to the tune of rs. 2,01,001 and the expenses to the tune of Rs. 2,000, total Rs. 6,75,945. The award further directs the insurance company to deposit the amount within 30 days from the date of order, failing which the whole amount will be recovered along with 15 per cent per annum interest from the date of order up to the date of payment.
(3.) THOUGH the insurance company has challenged the award as a whole, however, during the course of arguments and keeping in view the findings recorded by the commissioner, on the basis of the facts, learned counsel appearing for the insurance company has ultimately confined his arguments to the question of payment of interest. It has been urged on behalf of the appellant that the Commissioner has awarded interest from the date of accident at the rate of 10 per cent per annum and not from the date of order. According to the learned counsel, interest under section 4-A (1) of the Workmen's Compensation act, 1923 (hereinafter referred to as 'the act') becomes payable from the date of the order and not from the date of the accident. With a view to appreciate the contention of the appellant, it is deemed appropriate to examine the provisions of section 4-A of the Act which is reproduced hereunder: "4-A. Compensation to be paid where 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 workman, as the case may be, without prejudice to the right of the workman 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 (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 ). (3-A) The interest and penalty payable under section (3) shall be paid to the workman or his dependant, as the case may be. ";