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TMI Blog2013 (7) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... is justified in directing the appellant to pay interest at the rate of 12% per annum from the date of the accident. (B) Considering the facts and circumstances of the case, the Court below ought to have found that the compensation becomes due only when the adjudication of the claim is made. The expression falls due , signifies that it is due only when the adjudication is made, i.e., the date of passing of order. 2. As far as the substantial questions of law are concerned, there can be no dispute that the matter is to be answered against the appellant going by the judgment of the Apex Court reported in Oriental Insurance Co. Ltd. v. Siby George (2012 (3) KLT 544 (SC)), we do so and therefore the appeal is only to be dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The word 'interest' is defined under S. 2(28A) as:- interest means interest payable in any manner in respect of any moneys borrowed or debt incurred including a deposit, claim or other similar right or obligation and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised; We need not be detained by S. 2(28B) as it relates to interest on securities which is not relevant for our purpose. 8. As far as the interest paid or credited by way of interest on compensation awarded by Motor Accidents Claims Tribunal where the amount of such income does not exceed fifty thousand rupees is concerned, by the provisions of S. 194A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and income for the purpose of S. 194A and tax is to be deducted if the other ingredients are satisfied. 10. Learned counsel for the claimant however brings to our notice of the judgment of a Division Bench of this Court reported in New India Assurance Co. Ltd. v. Biju (2011 (2) KLT 142). There the questions which apparently arose was whether the employer or insurer is bound to deposit interest portion of amount payable under impugned order, as a condition pre-requisite to maintain an appeal under S. 30 of the Act. Whether the amount payable under the order appealed against will include not only the principal amount of compensation but interest as well. Therein, the court inter alia held as follows:- 29. As has been noticed alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . No doubt it is the judgment pronounced by a Division Bench of this court. We also told that the matter was referred to Full Court. We may incidentally notice that S. 4A of the Act reads as follows:- 4A. Compensation to be paid when due and penalty for default.-- (1) Compensation under section 4 shall be paid as soon as it falls due. (2) xxxxxx (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall- (a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the maximum of the lending rates of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue receipt and therefore income. There is no exception provided in respect of interest on compensation payable under the Act. The only exception of the nature is seen provided under clause (ix) of sub-section (3) which we have already alluded to. Therefore, whatever may have been held by this court in the context of the question as to the prerequisite to maintain an appeal under S. 30, we would think that as far as the liability to deduct tax in so far as the interest is concerned it to be treated as revenue receipt and the appellant was liable to deduct tax on the interest. In such circumstances, the upshot of the above discussion is as follows:- The appeal is meritless and it is dismissed. The appellant was justified in deductin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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