Karnataka High Court
National Insurance Co Ltd vs Late Sri Ramanappa on 9 November, 2012
Author: N.Ananda
Bench: N.Ananda
1
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 09TH DAY OF NOVEMBER 2012
BEFORE
THE HON'BLE MR.JUSTICE N.ANANDA
M.F.A.No.8755/2009 (WC)
BETWEEN:
National Insurance Co. Ltd.
Kolar Branch
1092/2, New Extension
Doomlight Circle, Kolar
Appellant rep. herein
By its Regional Office at
Subharam Complex
No.144, M.G.Road
Bangalore, rep. by its Manager. ... Appellant
(By Smt.Deepa, Advocate for Sri C.M.Poonacha, Advocates for
M/s.Lexplexus, Advocates)
AND:
1. Late Sri Ramanappa
S/o Venkataravanappa, 35 Years deleted v.c.o.dt.08.02.2011
R/at Nallamaddireddy Halli,
Gudibande Taluk.
2. Smt.Ramalakshmma
W/o Ramanappa, 29 Years
3. Kumari Nethravathi
D/o Ramanappa, 8 Years
2
4. Kumari Vedavathi
D/o Ramanappa, 8 Years
5. Kumari Vedavathi
D/o Ramanappa, 8 Years
6. Sri Thippareddy
S/o Chikkabiddappa
R/at Geggirallahalli
Gudibande Taluk
Chikkaballapur District. ...Respondents
(By Sri P.L.Nanjundaswamy, Advocate for R2 to R5; R6 - notice
held sufficient v.c.o, dt.08.02.2011)
This appeal is filed under section 30(1) of Workmen's
Compensation Act, to set aside the award dated 30.04.2009,
passed in KAPAKA-MA/CB/CR-08/2008(Old No.WCA.NF.
No.15/2004), on the file of the Labour Officer and Commissioner
for Workmen's Compensation, Chikkaballapur District,
Chikkaballapur, awarding compensation with interest.
This appeal coming on for hearing this day, the court
delivered the following:
JUDGMENT
In this appeal, the Insurance Company has raised following substantial questions of law:-
1. Whether the Commissioner was justified in awarding 12% interest per annum on the award amount from the date of filing of application till the date of deposit in view of the law settled by the Supreme Court of India 3 awarding interest at 7½% from date of application till date of award?
2. Whether the Commissioner was justified in answering issue nos.1, 2 and 3 in the affirmative merely on the ground that the appellant had failed to produce any evidence to dislodge the claims of the respondents 1 to 3, even though the burden of proof lie upon the respondents herein to prove the same?"
2. In my considered opinion, second question as aforestated cannot be termed as a substantial question of law. Therefore, what remains to be determined is the rate of interest and date of accrual of interest.
3. In Civil Appeal No.5669/2012 (arising out of SLP(C) No.9516/2010) (in the case of Oriental Insurance Co.Ltd. Vs. Siby George & Others), the Supreme Court has held:-
"The decisions in Pratap Narain Singh Deo was by a four Judge Bench and in Valsala by a three Judge Bench of this Court. Both the decisions were, thus, fully binding on the Court in Mubasir Ahmed and Mohd.Nasir, each of 4 which was heard by two Judges. But the earlier decisions in Pratap Narain Singh Deo and Valsala were not brought to the notice of the Court in the two later decisions in Mubasir Ahmed and Mohd.Nasir.
12. In light of the decisions in Pratap Narain Singh Deo and Valsala, it is not open to contend that the payment of compensation would fall due only after the Commissioner's order or with reference to the date on which the claim application is made. The decisions in Mubasir Ahmed and Mohd. Nasir insofar as they took a contrary view to the earlier decisions in Pratap Narain Singh Deo and Valsala do not express the correct view and do not make binding precedents."
In the aforestated judgment, the Supreme Court has held that interest is payable after 30 days from the date of accident.
4. The Commissioner for Workmen's Compensation has rightly awarded interest at 12% per annum after 30 days 5 from the date of accident. Therefore, neither rate of interest nor date of accrual of interest need modification.
5. In the result, I pass the following:-
ORDER The appeal is dismissed. The impugned award is confirmed. The amount deposited by Insurance Company, which has been invested in fixed deposit shall be realised and transferred to the Commissioner for Workmen's Compensation at Chikballapur for disbursement of the same to claimants, in accordance with law.
Sd/-
JUDGE SNN