Employee’s Compensation Act: Interest payable from accident date

Shobha & Ors. Vs  Chairman, Vithalrao Shinde, Sahakari Sakhar Karkhana Ltd. & Ors. (Supreme Court) As per Section 4A of Employee’s Compensation Act, 1923 compensation under Section 4 shall be paid as soon as it falls due. It can be seen that the liability to pay the interest on the amount of compensation due and payable would be under Section 4A(3)(a) and the penalty would be leviable under Section 4A(3)(b). As per Section 4A(3)(a), the employer shall pay, in addition to the amount of the arrears, simple interest thereon @ 12% p.a. or at such higher rate not exceeding the maxi...