- (1.) In award dated 29.06.2010 passed in Claim Case No. WCCF 9/2008 titled as Ramswaroop Singh & Anr. Vs. M/s Carvan Roadways Ltd. & Ors. by Commissioner(W.C.) Jaipur District, Jaipur has been challenged by claimant Ramswaroop Singh only on the ground that the interest on the compensation amount should have been awarded to the claimants from 10.06.2005 (date of the accident) and not from 15.01.2008 (the date of filing of claim application) and additionally funeral expenses to the tune of Rs. 2500/- have also been claimed by the appellant.
(2.) I have heard arguments of both the parties law of interest payable in cases of W.C. Act have been elaborated in the following ruling to my knowledge- 1. Mohamadi and Ors. Vs. Union of India, 2011 ACJ 2356 In this case two judges bench of the Apex Court on 05.04.2010 held that in a case of compensation under Section 124 (A) of the Railway's Act 1999 interest would accrue on the compensation amount from the date of the claim application and not from the date of the judgment of the Tribunal. In this case Thazhathe Purayil Sarabi and Ors. Vs. Union of India, 2010 4 AllMR 472 was followed. It was further held in these cases that payment of interest is basically compensation for being denied the use of the money during the period which the same could have been made available to the claimants. It was further held in these cases that even if the appellants may not be entitled to claim interest from the date of the accident , we are of the view that the claim to interest on the awarded sum has to be allowed at least from the date of the application till the date of the recovery. Appellant cannot be faulted for the delay caused in disposal of the claim by the Tribunal. It was further held in these cases that even when there is no specific provision for grant of interest on any amount due, the Court and Tribunals are entitled to award interest in their discretion, under the provisions of Section 3 of the Interest Act and Section 34 of C.P.C. 2. Pratap Narain Singh Deo Vs. Srinivas Sabata and another, 1976 1 SCC 289 (Bench of four judges of the Apex Court)- This was case under the W.C. Act 1923 and in this case compensation was awarded by the Commissioner with 6% simple annual interest on the award amount and 50% of the award amount was also ordered to be paid by way of penalty to the claimant. It was held by the Apex Court that the employer was supposed to pay the compensation as soon as the personal injury was caused to the respondent and it cannot be said that the compensation had not fallen due until it was settled by the award. So in the facts and circumstances Apex Court held that the Commissioner was fully justified in making an order for the payment of interest and penalty. 3. Kerala SEB Vs. Valsala K., 1999 8 SCC 254 In this case it was held that if accident took place prior to amendment in W.C. Act then enhanced rates of compensation will not be applicable while awarding compensation. It was further held in this case that judgment of Larger Bench in Pratap Singh Deo case will prevail over two judge bench decision in E.N. Company Vs. V.K. Neela Kandan of Apex Court decided on 06.11.1996 . It was held that the relevant date for determination of the rate of compensation under W.C. Act is the date of accident and not the date of the award. 4. Sabera Bibi Yakubbhai Shaikh and Ors. Vs. National Insurance Compay Ltd. and Ors, 2014 2 SCC 298. In this case two judges bench of the Apex Court held that in cases under W.C. Act 1923 claimants will be entitled to interest on award amount from the date of the accident and not from the date of the award. Pratap Narain Singh Deo Case and Valsala K. Case and Oriental Insurance Company Vs. Siby George, 2012 12 SCC 540 of the Apex Court were followed and following decisions were held perincuriam- a. U.P.SRTC Vs. Satnam Singh, 2011 14 SCC 758 b. National Insurance Co. Ltd. Vs. Mubasir Ahmed, 2007 2 SCC 349 c. Oriental Insurance Co. Ltd. Vs. Mohd. Nasir, 2009 6 SCC 280
(3.) Looking to the law propounded in aforesaid rulings and looking to the delay made by the claimants in filing the claim it appears that the interest on the compensation amount should be made payable in this case neither from the date of the accident nor from the date of the award of the Tribunal but from the date of the filing of the claim application i.e. 15.01.2008 because for the delay in filing the claim application, the respondents may not be unnecessarily made to suffer and so the argument of the appellant in this regard stands dismissed because the Tribunal has already awarded interest from the date of filing of claim application.;