SC: Workmen’s Compensation Interest to be paid from Date of Accident as opposed to Date of Adjudication of Claim

Workmen’s Compensation

The Supreme Court had observed that the interest on the compensation as receivable under the Workmen’s Compensation Act 1923, would be paid from the date of the accident and not from the date of adjudication of that claim. 

Ajaya Kumar Das, who was working as a labourer met with an accident and suffered multiple injuries in his abdomen as well as his kidney. A claim for compensation was then lodged before the Workmen compensation-cum-Assistant Labour Commissioner, Odisha. 

Having allowed his claim, the Commissioner had directed that a compensation of Rs 2,78,926 would need to be paid together with interest at the rate of 12% per annum on the total principal sum that was awarded from the date of the accident until the deposit. Though the High Court refused to interfere with the compensation amount, it was held by the court that Das was not entitled to receive any interest on the compensation that was awarded except the accrued interest.