{"id":239903,"date":"2020-11-30T10:15:14","date_gmt":"2020-11-30T04:45:14","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=239903"},"modified":"2020-12-05T10:00:13","modified_gmt":"2020-12-05T04:30:13","slug":"all-hc-liability-of-employer-and-insurer-to-pay-interest-on-amount-awarded-but-not-paid-under-the-employees-compensation-act-whether-mandatory-court-answers","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/30\/all-hc-liability-of-employer-and-insurer-to-pay-interest-on-amount-awarded-but-not-paid-under-the-employees-compensation-act-whether-mandatory-court-answers\/","title":{"rendered":"All HC | Liability of employer and insurer to pay interest on amount awarded but not paid under the Employees\u2019 Compensation Act, whether mandatory? Court answers"},"content":{"rendered":"

Allahabad High Court: <\/strong>Dr Kaushal Jayendra Thaker, J., held the employer and the insurance company liable to pay interest on the amount which was awarded by the Labour Commissioner to the claimants under the Employees\u2019 Compensation Act, 1923, but which was not paid by the employer and the insurance company within one month from the date when it felt due.<\/p>\n

The High Court admitted the appeal on the limited question of law framed as follows:<\/p>\n

Whether the Commissioner has committed an error of law in not granting any interest despite the fact that the claimants were held entitled to compensation?<\/p>\n

The appeal<\/span><\/h3>\n

The present appeal was filed by the claimants challenging the judgment and award dated 16-3-2020 passed by the Commissioner, Employees Compensation Act and the Assistant Labour Commissioner, Muzaffarnagar, in an Employees Compensation Case, awarding a sum of Rs 8,47,160. Since the facts, quantum and liability have attained finality, the appeal was heard and decided only on the question of law mentioned above.<\/p>\n

The claimants were represented by Satya Deo Ojha, Advocate; while Pawan Kumar Singh, Advocate, appeared for the respondent-insurer.<\/p>\n

Analysis and decision<\/span><\/h3>\n

At the outset, it was noted by the High Court that the employer and the insurance company had not deposited the amount nor it paid the amount within one month from when it feel due. The Court stated:<\/p>\n

\n

The Tribunal could have exonerated them for penalty but should the insurance company and the owner be not made liable for payment of interest on the amount accrued after one month of payment is the question posed to decision for not granting interest.<\/p>\n<\/blockquote>\n

After noting the submission of claimants that no reasons were assigned by the Comissioner for not awarding the interest, the High Court answered that in Section 4-A (\u201ccompensation to be paid when due and penalty for default<\/em>\u201d) of the Employees\u2019 Compensation Act, 1923, the word used is \u201cshall\u201d and therefore amount awarded shall carry 12% interest as per the statute. It was directed that the amount be deposited on or before 20-2-2021.<\/p>\n

The Commissioner too was directed to be more vigilant in future and if they feel, interest is not to be granted, they shall record reasons for the same and if they come to the conclusion that amount has been paid on the date of award, the same shall carry interest as per statute. The present order is directed to be circulated to all the Commissioners in State of Uttar Pradesh. [Miskina v. HDFC Ergo General Insurance Co. Ltd., First Appeal from Order No. 1538 of 2020, decided on 26-11-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"

Allahabad High Court: Dr Kaushal Jayendra Thaker, J., held the employer and the insurance company liable to pay interest on the amount <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[19811,44267,3302,29785],"class_list":["post-239903","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-employees-compensation-act","tag-employer-liability","tag-insurer","tag-law"],"yoast_head":"\nAll HC | Liability of employer and insurer to pay interest on amount awarded but not paid under the Employees\u2019 Compensation Act, whether mandatory? 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The claimants claimed compensation under Section 3\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":259567,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/06\/can-minor-who-succumbed-to-an-accident-during-course-of-employment-be-compensated-under-employees-compensation-act\/","url_meta":{"origin":239903,"position":1},"title":"Can \u2018minor\u2019 who succumbed to an accident during course of employment be compensated under Employees Compensation Act or Insurance Company will be absolved of its liability? 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Narendra Prasad, J. while allowing the appeal in part and condoning the delay ordered that the claimant was not entitled to the interest for the delayed period of 358 days. This Miscellaneous First Appeal was filed under Section 173(1) of Motor Vehicles Act, 1988 seeking enhancement\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":350865,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/06\/18\/2025-scc-vol-5-part-2\/","url_meta":{"origin":239903,"position":3},"title":"2025 SCC Vol. 5 Part 2","author":"Editor","date":"June 18, 2025","format":false,"excerpt":"2025 SCC Vol. 5 Part 2: Explore the latest Supreme Court Cases on the Employees' Compensation Act, IBC and the Transfer of Property Act.","rel":"","context":"In "Cases Reported"","block_context":{"text":"Cases Reported","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casesreported\/"},"img":{"alt_text":"2025 SCC Vol. 5 Part 2","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/06\/2025-SCC-Vol.-5-Part-2.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/06\/2025-SCC-Vol.-5-Part-2.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/06\/2025-SCC-Vol.-5-Part-2.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/06\/2025-SCC-Vol.-5-Part-2.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":263654,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/14\/explained-compensation-under-section-4-of-employees-compensation-act-1923-to-be-awarded-from-the-date-of-accident-or-the-date-of-commissioners-order\/","url_meta":{"origin":239903,"position":4},"title":"Explained| Compensation under Section 4 of Employee\u2019s Compensation Act, 1923 to be awarded from the date of accident or the date of Commissioner’s order?\u00a0","author":"Prachi Bhardwaj","date":"March 14, 2022","format":false,"excerpt":"Supreme Court: The bench of MR Shah* and BV Nagarathna, JJ has held that as per Section 4A of the Employee\u2019s Compensation Act, 1923, the liability to pay the compensation would arise from the date on which the deceased died for which he is entitled to the compensation and therefore,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":145341,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/07\/27\/s-167-of-motor-vehicles-act-bars-dual-claim-of-compensation-both-under-employees-compensation-act-as-well-as-mv-act\/","url_meta":{"origin":239903,"position":5},"title":"S. 167 of Motor Vehicles Act bars dual claim of compensation, both under Employees Compensation Act as well as MV Act","author":"Saba","date":"July 27, 2017","format":false,"excerpt":"Karnataka High Court: While delivering the judgment in a Miscellaneous First Appeal under Section 173(1) of the MV Act, against the judgment passed by the Ist Additional District Judge, Mangaluru, a Single Judge Bench comprising of B. 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