Full Text
HIGH COURT OF DELHI
FAO No. 14/2012 12th March, 2014 NEW INDIA ASSURANCE CO. LTD. ......Appellant
Through: Mr. D.D.Singh, Adv and Mr. Navdeep Singh, Adv.
Through:
To be referred to the Reporter or not? VALMIKI J. MEHTA, J (ORAL)
JUDGMENT
1. This first appeal is filed under Section 30 of the Employee’s Compensation Act, 1923 impugning the order of the Commissioner dated 19.10.2011 which has directed payment of interest under Section 4A of the Act by the appellant-insurance company on the compensation amount awarded.
2. It is the undisputed position in law and now settled by various Supreme Court judgments that proceedings under Section 4-A are consequential proceedings on first the compensation amount being 2014:DHC:1389 determined under Section 4 of the Act. After determination of compensation under Section 4 of the Act, then, the show cause notice is issued to the employer and the insurance company if there is any justification for delayed payment. If the Commissioner is satisfied by the justification then the Commissioner may not award interest and penalty.
3. Before the Commissioner, the appellant-insurance company gave a reply relying upon the case of the National Insurance Co. Ltd. Vs. Mubasir Ahmed and Anr. (2007) 2 SCC 349 that the interest is liable to be paid after passing of the Award by the Commissioner and not after 30 days of date of the accident.
4. The Supreme Court by a Division Bench judgment of four judges way back in the case of Pratap Narain Singh Deo Vs. Srinivas Sabata & Anr. (1976) 1 SCC 289 has held that interest is payable not after 30 days of passing of the order by the Commissioner but after 30 days of date of the accident and failing which interest will have to be paid. The judgment in the case of Mubasir Ahmed(supra) was rendered in ignorance of the judgment in the case of Pratap Narain Singh Deo (supra) and therefore, this has been so clarified by the Supreme Court in the case of Oriental Insurance Co. Ltd. Vs. Siby George & Ors. (2012) 12 SCC 540 which holds that since Mubasir Ahmed’s case (supra) takes contrary view to a Larger Bench judgment in the case of Pratap Narain Singh Deo (supra), the same is per incuriam decision and not binding.
5. In view of the above, the appellant-insurance company is liable to pay interest not from 30 days of passing of the order by the Commissioner but after 30 days of date of the accident in view of the ratio of Pratap Narain Singh Deo (supra)
6. In view of the above, there is no merit in the appeal and the same is therefore dismissed, leaving the parties to bear their own costs. All pending applications stand disposed of accordingly.
MARCH 12, 2014 VALMIKI J. MEHTA, J. ib