SABERABIBI YAKUBBHAI SHAIKH & ORS. versus NATIONAL INSURANCE CO. LTD. & ORS.

Citation: [2014] 1 S.C.R. 303 · Decided: 02-01-2014 · Supreme Court of India · Bench: S.S. NIJJAR, F.M. IBRAHIM KALIFULLA · Disposal: Appeal(s) allowed
Open in Lexace · Ask the AI about this case
Judgment (excerpt)

(2014] 1 S.C.R. 303 
SABERABIBI YAKUBBHAI SHAIKH & ORS. 
A 
v. 
NATIONAL INSURANCE CO. LTD. & ORS. 
(Civil Appeal No.8 of 2014) 
JANUARY 02, 2014 
[SURINDER SINGH NIJJAR AND FAKKIR MOHAMED 
IBRAHIM KALIFULLA, JJ.] 
WORKMEN'S COMPENSATION ACT, 1923: 
Interest on compensation - Relevant date - Held: 
Claimants are entitled to interest @12% from the date of 
accident and not from the date of award. 
B 
c 
Pratap Narain Singh Deo v. Srinivas Sabata (1976) 1 
SCC 289; Oriental Insurance Company Limited vs. Siby D 
George and others 2012 (6) SCR 1079 = (2012) 12 SCC 540 
- relied on. 
National Insurance Co. Ltd. v. Mubasir Ahmed 2007 
(2) scR 111 = (2007) 2 sec 349 and (2011) 14 sec 758; 
E 
Oriental Insurance Co. Ltd. v. Mohd. Nasir 2009 (8) SCR 829 
= (2009) 6 sec 280 - stood held per incuriam. 
Uttar Pradesh State Road Transport Corporation now 
Uttarakhand Transport Corporation versus Satnam Singh 
F 
(2011) 14 sec 758 - cited. 
Case Law Reference : 
(2011) 14 sec 758 
cited 
para 7 
2012 (6) SCR 1079 
relied on 
para 9 
G 
2007 (2) SCR 117 
held per incuriam para 10 
2009 (8) SCR 829 
held per incuriam para 10 
303 
H 
A 
304 
SUPREME COURT REPORTS 
[2014] 1 S.C.R. 
(1976) 1 sec 2s9 
relied on 
para 10 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8 
of 2014. 
From the Judgment and Order dated 24.01.2012 of the 
B High Court of Gujarat at Ahmedabad in First Appeal No. 197 
of 2012. 
c 
D 
O.P. Bhadani. Ashok Anand, Rakesh Kumar Singh, Fazal 
Ahmad for the Appellants. 
S.L. Gupta, Ram Ashray, D.P. Singh Yadav, J.P. Jayant, 
Shalu Sharma for the Respondents. 
The following order of the Court was delivered 
ORDER 
1. Delay condoned. 
2. Leave granted. 
E 
3. The appellants are the wife and the relatives of 
deceased driver who died in a road accident. The deceased 
driver was driving a truck bearing No. GJ-17-T-8607, which was 
owned by Yunusbhai Gulambhai Shaikh, respondent No.2 
herein. The deceased was 36 years of age at the time of the 
F accident. On 20th November, 1996, the appellants raised a 
claim of compensation for a sum of Rs.2, 15,280/- and 12% 
interest therein from the date of accident by filing a claim 
application before the Workmen Compensation Commissioner/ 
Labour Court. After passage of more than 16 years, the wife 
G and children of the deceased driver had still not received any 
compensation. 
4.' The appellants filed a compensation application before 
the Workmen Compensation Commissioner/Labour Court on 
20th November, 1996. The appellants made a claim of 
H Rs.2, 15,280/- and also penalty to the tune of 50% of the 
SABERABIBI YAKUBBHAI SHAIKH v. NATIONAL 
305 
INSURANCE CO. LTD. 
compensation i.e. a sum of Rs.1,07,640/-, thus, making the 
A 
grand total of Rs.3,22,920/-. Respondent No.1- the Insurance 
Company, contested the compensation application. On 23th 
December, 2010, the learned Commissioner awarded 
compensation on account of death in the sum of Rs.2, 13,570/ 
- with 12% interest from the date of accident. The learned 
8 
Commissioner also awarded Rs.1,06, 785/- as penalty. 
5. Aggrieved and dissatisfied with the aforesaid judgment 
and award passed by the learned Commissioner, the Insurance 
Company filed First Appeal before the High Court. 
c 
6. By judgment and order, dated 24th January, 2012, the 
High Court has partly allowed the First Appeal. The High Court 
directed the respondent No.1 - Insurance Company to pay 
interest on the amount of compensation from the date of 
adjudication of claim application i.e. 23th December, 2010 and 
D 
not from one month after from the date of accident i.e. 21st 
August, 1996. A further direction· was issued that the excess 
amount towards interest, If any, deposited by the respondent 
No.1 - Insurance Company be refunded to it. The judgment and 
order of the Commissioner for Workmen Compensation was 
E 
modified to that extent. 
7. In coming to the aforesaid conclusion, the High Court 
relied upon the judgment of this Court reported in Uttar Pradesh 
State Road Transport Corporation now Uttarakhand Transport 
Corporation versus Satnam Singh, (2011) 14 sec 758, 
F 
wherein it has been held that the interest was payable under 
the Workmen Compensation Act from the date of the Award 
and not from the date of accident. 
· 
8. Aggrieved by the aforesaid judgment of the Hgh Court, 
G 
the appellants have filed the present appeal. 
9. Learned counsel for the appellants has submitted that 
the aforesaid judgment of the High Court is contrary to the la
Excerpt shown. Read the full judgment & AI analysis in Lexace.