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Judgment
N.V.Anjaria, J
Heard learned advocate Mr. Vishal B. Thakkar for the applicants and learned advocate Mr. Shashikant Gade for the respondent Nos.1 and 2.
In this application, the applicants invoked jurisdiction of the Court under the Contempt of Court’s Act, 1971, on the ground that following
directions issued by learned Single Judge in judgment dated 20.9.2019 passed in Special Civil Application No.631 of 2016 have not been complied with.
“14. This Court deems it appropriate in wake of the discussion above to grant the interest @ 12% on the delayed payment of compensation from
18.12.1996, the day on which the employer had intimated the death of the person concerned to the ESI Corporation till the payment made on
20.05.2015.
In the result, this petition succeeds, quashing and setting aside the order of Employees State Insurance Court at Bhavnagar in ESI application No.2
of 1998, the respondent organisation is directed to pay interest at the rate of 12% on the delayed payment of amount of compensation to the petitioner
from the date of intimation of death i.e. 18/12/1996 till the making of payment i.e. 20/05/2015. This shall be paid within four weeks from the date of
receipt of copy of this order.
The amount shall be disbursed in the account of the petitioner No.1. The detail of her account shall be provided to the respondent. Considering the
fact that both the sons have attained majority and the petitioner No.1 is the widow having no means, entire amount shall be paid to her. Any delay
would entitle her to recover the interest at the rate of 15% per annum from the initial date. Petitioner to be paid the cost of this litigation by the
respondent.â€
Notice was issued on 22.6.2020. Further on 6.7.2020, following order was passed.
“1. The following order was passed on 22.06.2020:- “It was submitted by learned advocate Mr. Vishal Thakkar in the present application filed
under Section 10 of the Contempt of Court's Act, 1971 that the directions contained in paragraph Nos.14, 15 and 16 in the judgment and order dated
20.09.2019 in Special Civil Application No.631 of 2016 have not been complied with even after the petitioner's sent a notice dated 08.01.2020 to the
authority concerned. It was stated that the aforesaid order and the directions therein have attained finality as no Letters Patent Appeal has been filed
thereagainst. Let there be Notice to the respondents returnable on 06.07.2020.â€
Today, Mr. Vishal P. Thakker, learned advocate for the applicant has been requested by Mr. Shashikant S. Gade, for the opponents No.1 and 2
that the authority is prepared to execute the order and in all its probabilities by next week, they may be ready with the amount also.
Matter is fixed on 13.07.2020.â€
As per the directions of learned Single Judge reproduced above, the applicants were entitled to 12% interest on the delayed payment of
compensation from 18.12.1996, the day on which the employer intimated the death of the person concerned to the ESI Corporation, till payment made
on 20.5.2015. It was directed that the interest shall be paid within four weeks from the date of receipt of the copy of the order. It was next provided
that any delay would entitle the applicant to recover the interest at the rate of 15%.
3.1 In response to the notice of this Court, respondent filed reply interalia stating that the certified copy of the order was received in December, 2019
and the payment was made on 10.7.2020. Counting the four weeks from the date of receipt of the order, the payment was required to be made
somewhere in the month of January, 2020, however it was delayed as above. It was made as on 10.07.2020, it was submitted.
Learned advocate for the applicant submitted that in view of these above facts, the directions for recovery of interest at the rate of 15% would
operate and until the amount was paid on 10.7.2020, it ought to have been at the rate of 15%. We are not persuaded with the submission. It is to be
taken into consideration that since the last week of March, 2020 the situation arose due to spread of Corona virus which resulted into lockdown in
which the Government offices could also not function fully.
In this view the prayer for interest at the rate of 15% as sought to be canvassed by learned advocate for the applicant on the ground of delayed
payment cannot be countenanced. However, as noted above, the amount of interest is required to be paid within four weeks from the date of certified
copy which was in December.
5.1 It could be at the same time said that for the period of two months, that is February, 2020 and March, 2020, the applicant would be entitled to get
the benefit of interest at the rate of 15%.
It is not in dispute that the interest at the rate of 12% is already paid, and in that regard the order is complied with. We therefore close the contempt
proceedings.
6.1 We, however, direct that the respondent ESI Corporation shall calculate the interest at the rate of 15% on the compensation payable and pay such
interest amount in respect of two months that is February, 2020 and March, 2020. The differential amount payable as above, shall be paid to the
applicant within six weeks from today.
The present Miscellaneous Civil Application stands disposed of. Notice is discharged.