OD-3,5 v. M/S EASTERN COALFIELDS LIMITED & Ors.

death of the employee (husband of the writ petitioner). 2

2. Learned Advocate for the writ petitioner/cross appellant submits that the amount of MMCC under National Coal Wage Agreement (hereinafter in short referred to as ‘NCWA’) has been paid.

3. It is not in dispute that the ECL has made payments as per direction of the learned Single Judge’s bench. The amount paid is also not in dispute. Under the circumstances the appeal filed by the ECL has become infructuous.

4. Learned Advocate for the writ petitioner, however, submits that the petitioner field an appeal challenging the self-same order dated 17.06.2025, passed by the Writ Court since the writ court did not award any interest on the delayed payment made for the period of delay, commencing from the date of demise of the writ petitioner’s husband on 19.04.2012.

5. Learned Advocate for the ECL submits that prior to the claim for MMCC being processed, a claim for employment of the son was being processed by the authorities. Sufficient material was placed before the learned Single Judge to demonstrate that the petitioner’s claim was being processed at all levels. The delay was procedural

6. The wife finally submitted a claim for benefit of MMCC only on 14.06.2016 and, therefore, there is no scope for the writ petitioner to claim a benefit of interest on the dues of MMCC with effect from 19.04.2012.

7. We have considered the submission advanced on behalf of the parties. The sole issue for consideration in the present intra-court appeal is writ petitioner’s claim for interest on the delayed payments made in respect of dues under the MMCC. The plea raised by the ECL that an application for the claim was submitted for the first time on 14.06.2016, cannot be made a basis to justify the inordinate and 3 unexplained delay even thereafter. The dues have been paid recently during pendency of the present proceeding more than a decade even after an application for MMCC was submitted on 14.06.2016.

8. Even otherwise this Court recently in the Maya Bouri v. Eastern Coal Fields Ltd. (APOT 267 of 2025) and Eastern Coalfields Ltd. & Ors. V. Maya Bouri (APOT 205 of 2025) has held that delay of such a nature which has the effect of depriving an intended beneficiary of a social welfare and protective benefit (MMCC), is required to be compensated by way of interest. The Court in the case of Maya Bouri (supra) considered that withholding of the amounts on account of inaction/delay of the employer is an antithesis of the beneficial and protective intention under the NCWA which contemplates payment of MMCC to the dependent widow with effect from the date of demise of the workman. The Court considered that there was no obligation even for making an application for grant of such benefit.

9. In the present case also, we found that details of the beneficiary/writ petitioner was available with the employer which is apparent from the details submitted by the workman while in service. His nomination in favour of the present petitioner is also apparent from the records.

10. In the case of Maya Bouri (supra) the Court considered a settled position that grant of benefit of MMCC was not dependent upon making of an application for the benefit. Under the circumstance a plea regarding delayed application is devoid of any substance.

11. Learned Advocate for the ECL also relied upon a recent decision of the Apex Court in the case of (2025) 4 SCC 19 [M/s. Tomorrowland Limited -vs- Housing and 4 Urban Development Corporation Ltd. (HUDCO)] to submit that the award of interest requires a balanced approach and consideration of the relevant facts. Whether there is any mitigating factor in favour of the person upon whom the interest is to be saddled is required to be considered vis a vis latches on the part of the claimant.

12. We have perused the Judgment. The law laid down therein is settled and binding on this Court. The apex Court has laid down the law which mandates judicious exercise of discretion to award interest aligning with equitable considerations. The Court is required to ensure that neither there is undue enrichment nor unfair deprivation. The discretion, therefore, must reflect a balanced approach grounded by reason and guided by equity. The judgment mandates such consideration in the facts and circumstances of each case. We, therefore, proceeded to consider the claim for interest having regard to the above noted facts.

13. We find the son of the deceased employee was an applicant for compassionate employment. His application for such a benefit was also kept pending by the employer from 23.01.2013 till such time he was alive. The son unfortunately passed away on 24.03.2015.

14. Another aspect which merits consideration is accretion of interest on the amounts withheld by the ECL while the amount was illegally and unjustly withheld. Such unjust enrichment by the ECL at the cost of dependants of the deceased employee cannot be countenanced.

15. The totality of the above facts and circumstances leaves no room for the ECL to contend that there was any mitigating circumstance whatsoever relying on which 5 they may claim any leniency by this Court while considering the grant of interest on the withheld dues of MMCC. Under these circumstances we were also contemplating award of penal interest/cost.

16. However, we take note of one positive factor in the present proceedings, i.e. payment of the admitted dues, in the meantime, with effect from the date of death of the employee in harness.

17. The above factors lead the court to an irresistible conclusion that the deprivation suffered by the dependants of the deceased employee in the present case warranted imposition of interest on the amount withheld.

18. Therefore, we are of the considered opinion that the present petitioner/cross appellant is entitled to interest at the rate of 6% per annum, as granted in the case of Maya Bouri (supra)

19. In view of the above order, the appeal and the cross appeal along with the connected applications accordingly stand disposed of. (MADHURESH PRASAD, J.) (PRASENJIT BISWAS, J.)