VidhiSangh

Supreme Court of India · 11/03/2022

SHOBHA & ORS. versus THE CHAIRMAN, VITHALRAO SHINDE SAHAKARI SAKHAR KARKHANA LTD. & ORS.

[2022] 1 S.C.R. 761 · 2022 INSC 298

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Summary

The dependants of a sugarcane-cutting labourer who died from a snakebite challenged postponement of interest on employee compensation until after the Commissioner’s award. The Court held that compensation became due on the employee’s death and distinguished statutory interest from the separate penalty provision. It restored twelve-percent annual interest on the awarded compensation from the incident date, 29 November 2009.

Issues

  1. Whether interest on compensation ran from the fatal incident or from after the Commissioner’s award.
  2. Whether the distinct penalty provision governed the commencement of interest.

Provisions considered

Held

Result

Appeal allowed without costs. The High Court’s postponement of interest was set aside; twelve-percent annual interest on the awarded compensation was directed from 29 November 2009, the incident date.

Judgment PDF: Supreme Court of India, [2022] 1 S.C.R. 761.