After Marble Fell On Labourer’s Leg At Work, Karnataka HC Raises Interest On His Rs 5.89 Lakh Compensation To 12%

On 27 May 2015, while unloading marble from a lorry during construction work, the appellant sustained an injury when a marble slab fell on his left leg.

He claimed compensation under the Employees’ Compensation Act, 1923.

The Commissioner awarded him ₹5,89,550 with interest at 9% per annum.

The appellant appealed seeking enhancement; the High Court modified the award by increasing the interest rate.

The appeal was brought under Section 30(1) of the Employees’ Compensation Act, 1923.

The Court stated that the employer has a duty to pay interest on compensation, irrespective of any contract concerning interest, and considered 12% per annum appropriate in this case.

The judgment cites no specific statutory provision governing the interest rate or any precedent.

The Court found that the wage register and master roll showed the appellant received ₹234 per day, and therefore upheld the income adopted by the Commissioner.

It also found the compensation of ₹5,89,550 appropriate and left that amount unchanged.

However, it considered the 9% interest awarded by the Commissioner insufficient and raised the rate to 12% per annum from the date of the claim petition until realisation.

The compensation award of ₹5,89,550 was affirmed, but interest was increased from 9% to 12% per annum from the date of the petition until realisation.

The Insurance Company was directed to deposit the compensation with accrued interest before the Tribunal within six weeks of receiving the certified copy of the judgment.