M.N. KRISHNAN v. Rekha (2007(4) KLT 386) considered the impact of the ConstitutionalBench decision & Anr.

M.N. KRISHNAN, J. ........................................... M.F.A.No.239 OF 2009 .............................................Dated this the 12th day of January, 2010. J U D G M E N T This is an appeal preferred against the award passed by the Workmen's Compensation Commissioner, Kollam inW.C.C.No.51/2002. The only question that arises for determination is whether interest is liable to be paid from the date of the accident or only from the date of the award.2. The learned counsel for the insurance company would contend that interest need be paid only from the date of award for the reason that the amount is crystalisedonly on passing of the award. In Pratap Narain Singh Deov. Shrinivas Sabata (AIR 1976 222), a Constitutional Benchdecision, the Hon'ble Apex Court found that interest is to bepaid from the date of the accident. Later a Division Benchof this Court in National Insurance Co. Ltd. v.

Rekha (2007(4) KLT 386) considered the impact of the ConstitutionalBench decision and later decision of the apex court. ThisCourt held that when there is conflict between the decisions : 2 :M.F.A.No.239 OF 2009 of the Supreme Court, the decision of the Larger Bench will prevail. So analysing the case in the backdrop of the Constitutional Bench decision, this Court held that the liability to pay interest is from the date of the accident and not later. Considering the Constitutional Bench decision aswell as the decision of the Division Bench of this Court, alearned Judge of the Himachal Pradesh High Court in the decision reported in New India Assurance Company v.Budh Ram (2009 (4) TAC 614) had quoted it as follows: “The Constitution Bench had already decided the question as to when compensation falls due in terms of the Workmen's CompensationAct, 1923. Unfortunately, this decision of the Constitution Bench was not brought to the notice of the Apex Court while decidingNational Insurance Company Ltd. v.

MubasirAhmed and Another, 2007 A.C.J. 845: 2007(2) T.A.C 3. Therefore, I feel that this Courtis bound by the judgment rendered by the Constitution Bench of the Apex Court and Iaccordingly hold that the compensation falls due on the date when the accident takes place and in case the same is not deposited within thirty days, the workman is entitled to claim interest at the rate of 12% per annum without having to show that delay in depositing the compensation was attributable to the employer. While taking this view, I amsupported by a Division Bench judgment of the Kerala High Court reported in NationalInsurance Company Ltd. v. Rekha, 2008 A.C.J : 3 :M.F.A.No.239 OF 2009 886” So, in the light of the decisions referred to above, this Court cannot find fault with the Workmen's CompensationCommissioner having awarded interest from the date of the accident. Therefore the appeal lacks merit and the same is dismissed. M.N. KRISHNAN, JUDGEcl : 4 :