Compensation attracts 12% simple interest from filing of the claim until realization.

The appellant, a semi-skilled worker, was electrocuted while working on an electric pole on 8 January 1997, sustaining serious injuries and permanent disability.

The Labour Court awarded him Rs.91,733 with simple interest at 9% per annum from the date of filing his claim until realization.

In the appeal, the appellant challenged only the interest rate; the assessment of disability, monthly income of Rs.1,500 and compensation calculation were not disputed

Whether the Labour Court’s award of interest at 9% per annum should be enhanced under Section 4A(3) of the Workmen’s Compensation Act

Whether the respondents were jointly and severally liable for the compensation and enhanced interest

The Court applied Section 4A(3) of the Workmen’s Compensation Act, holding that the claimant was entitled to simple interest at 12% per annum.

It further treated the principal employer and the contractor, as respondents to the claim, as jointly and severally liable for the compensation and interest

The appellant confined his challenge to the rate of interest, leaving the compensation assessment undisturbed.

The Court concluded that the Labour Court’s 9% rate was contrary to the entitlement it identified under Section 4A(3), and therefore enhanced interest to 12% per annum.

It also held the principal employer and contractor jointly and severally liable

Interest was enhanced from 9% to 12% per annum, payable from the date the claim petition was filed until realization, with all respondents held jointly and severally liable.

The respondents were directed to deposit the amount with the Labour Court within four weeks; upon deposit, it could be disbursed to the claimant after verification