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Jashoda Kumari Pradhan & Anr. v. The Divisional Manager, The United India Insurance Company Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 514 of 2016)Decided 22 Jan 2016
Civil Appeal No. 514 of 2016
Justice Anil R. Dave · Justice Adarsh Kumar Goel

Background

The Assistant Labour Commissioner-cum-Commissioner for Workmen's Compensation, Odisha, had awarded over Rs. 3 lakh in compensation plus 12% annual interest to the legal heirs of a deceased workman. The insurer's challenge to this award succeeded in part before the High Court, which deleted the interest component, prompting the heirs to appeal to the Supreme Court.

Decision Breakdown

The Supreme Court held that it could see no reason for the High Court to have denied interest to the legal heirs. It set aside the High Court's judgment on this point and restored the original Workmen's Compensation award in full, including the 12% interest, directing the insurance company to pay the amount within eight weeks.

Lesson Learnt

Interest on a workmen's compensation award is meant to make up for the delay in payment to a deceased worker's family, and courts should not casually strip it away once a competent authority has granted it.

Official source (sci.gov.in)View Judgment (PDF)

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