Ajaya Kumar Das & Anr. vs Divisional Manager & Anr.
Background
The appellant, a labourer, suffered severe permanent disability in a 2000 truck accident while loading/unloading sand. In 2016, the Workmen's Compensation Commissioner awarded him compensation of about Rs. 2,78,926 with 12% annual interest from the date of the accident. The insurer appealed to the Orissa High Court after a delay of 619 days. The High Court dismissed the appeal itself as time-barred, but nonetheless went on to delete the interest awarded to the labourer.
Decision Breakdown
The Supreme Court held the High Court's judgment "inexplicable", having dismissed the insurer's appeal for being filed beyond limitation, the High Court had no jurisdiction to interfere with the merits of the compensation order at all, including the interest component. Relying on its own precedents, the Court reaffirmed that under Section 4A of the Workmen's Compensation Act, 1923, interest on compensation runs from the date of the accident, not the date the claim is decided. The Court restored the original order granting interest and, expressing strong disapproval that the well-resourced insurer had used a time-barred appeal to unjustly avoid paying dues to an injured labourer, awarded the appellant Rs. 50,000 in costs in addition to the compensation and interest.
Lesson Learnt
When an appeal is dismissed purely on the ground of limitation (being filed too late), the appellate court cannot then go on to modify the underlying order on its merits, and interest on workmen's compensation is payable from the date of the accident itself, not from when the claim is finally decided.