Ramswaroop Singh vs Carvan Roadways Ltd. and Others

Atul Kumar Jain, J—In award dated 29th June, 2010 passed in Claim Case No. WCCF 9/2008 titled as Ramswaroop Singh & Anr. v. 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 10th June, 2005 (date of the accident) and not from 15th January, 2008 (the date of filing of claim application) and additionally funeral expenses to the tune of Rs. 2,500 have also been claimed by the appellant. 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 Others Vs. Union of India (UOI), (2011) ACJ 2356 -In this case two Judges Bench of the Apex Court on 5th April, 2010 held that in a case of compensation under Section 124(A) of the Railway''s Act, 1989 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 Others Vs. Union of India (UOI) and Another , 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) ACJ 141 : AIR 1976 SC 222 : (1976) LabIC 222 : (1976) 1 LLJ 235 : (1976) 1 SCC 289 : (1976) 2 SCR 872 : (1976) 8 UJ 139 , (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 State Electricity Board and Another Vs. Valsala K and Another, (1999) 2 ACC 656 : (2000) ACJ 5 : AIR 1999 SC 3502 : (2000) 1 CTC 563 : (1999) 7 JT 292 : (1999) 2 LLJ 1112 : (1999) 6 SCALE 31 : (1999) 8 SCC 254 : (2000) SCC(L&S) 50 : (1999) 2 SCR 657 Supp : (1999) AIRSCW 3496 : (1999) 8 Supreme 362 , Kerala SEB v. Valsala K. (Three Judges Bench)-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 v. V.K. Neela Kandan, of Apex Court decided on 6th November, 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.

Saberabibi Yakubbhai Shaikh and Others Vs. National Insurance Co. Ltd. and Others, (2014) 1 ACC 82 : (2014) ACJ 467 : AIR 2014 SC 1393 : (2014) AIRSCW 1584 : (2014) 1 JT 550 : (2014) 1 SCALE 153 : (2014) 2 SCC 298 , Sabera Bibi Yakubbhai Shaikh and Ors. v. National Insurance Company Ltd. and Ors., 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 The Oriental Insurance Company Ltd. Vs. Siby George and Others, (2012) ACJ 2126 : AIR 2012 SC 3144 : (2012) 134 FLR 1064 : (2012) 7 JT 301 : (2013) LabIC 350 : (2012) 3 LLJ 609 : (2012) LLR 897 : (2012) 4 PLR 598 : (2012) 4 RCR(Civil) 617 : (2012) 7 SCALE 86 : (2012) 12 SCC 540 : (2012) 4 TAC 5 : (2012) AIRSCW 4384 : (2012) 5 Supreme 254 of the Apex Court were followed and following decisions were held per incuriam-

(a) U.P.S.R.T.C. now Uttarakhand Transport Corporation Vs. Satnam Singh, (2012) ACJ 691 : (2012) 4 RCR(Civil) 232

(b) National Insurance Co. Ltd. Vs. Mubasir Ahmed and Another, (2007) 2 ACC 374 : (2007) ACJ 845 : AIR 2007 SC 1208 : (2007) 112 FLR 1033 : (2007) 3 JT 176 : (2007) 1 LLJ 1035 : (2007) 2 SCALE 455 : (2007) 2 SCC 349 : (2007) 1 SCC(L&S) 643 : (2007) 2 SCR 117 : (2007) 3 SLJ 62 : (2007) 1 UJ 240

(c) Oriental Insurance Co. Ltd. Vs. Mohd. Nasir and Another, (2006) ACJ 2742 : (2009) 121 FLR 1103 : (2009) 8 JT 26 : (2009) 3 LLJ 559 : (2009) 156 PLR 778 : (2009) 8 SCALE 161 : (2009) 6 SCC 280 : (2010) AIRSCW 866 : (2009) AIRSCW 3717 : (2009) 4 Supreme 589 ."

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. 15th January, 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. Claim for payment of Rs. 2,500. As funeral expenses appears to be fully justified in this matter and so the appellant will be entitled to get an additional amount of Rs. 2,500 from the respondents under this order. The appeal of Ram Swaroop Singh is partly allowed as above.