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Supreme Court of India 2022-03-11 allowed

Shobha & Ors vs Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Ltd. & Ors

Bench: 2 — M.R. Shah

In Brief

A sugarcane labourer died of a snake bite while working; his heirs claimed compensation under the Employee's Compensation Act, 1923. The Commissioner awarded compensation with interest from the accident date and imposed a penalty. The High Court removed the penalty but restricted interest to one month after the order. The Supreme Court held that under Section 4A(3)(a), interest is payable from the date compensation fell due (the accident date), not from later dates. Interest and penalty are separate provisions; the High Court erred by conflating them and thus wrongly limited interest. The appeal was allowed, and interest was restored from the date of the incident."

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Labour Law Workmen's Compensation Interest and Penalty Statutory Interpretation

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