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Saberabibi Yakubbhai Shaikh & Others v. National Insurance Co. Ltd. & Others

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 8 of 2014)Decided 2 Jan 2014
Civil Appeal No. 8 of 2014
Justice S.S. Nijjar · Justice F.M. Ibrahim Kalifulla

Background

A truck driver's family sought compensation after he died in a road accident, but had still received nothing more than sixteen years after bringing their claim. The Compensation Commissioner awarded compensation, a penalty and 12% interest from the accident. On the insurer's appeal, the High Court restricted interest to the much later date when the claim was decided.

Decision Breakdown

The Supreme Court allowed the family's appeal and set aside the High Court's order. It followed earlier binding decisions holding that compensation becomes due upon the accident, rather than only when the Commissioner determines the claim. Decisions supporting the later starting point had overlooked judgments of larger benches and could not govern the case. The family was therefore entitled to 12% interest from the accident date.

Lesson Learnt

A long delay in deciding an employment-compensation claim should not strip a bereaved family of the interest awarded for that delay. In this case the Court restored interest from the accident, rather than letting the insurer benefit from years of litigation.

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

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