The Supreme Court last week ruled that compensation for personal injury suffered by a worker “arising out of or in the course of employment” becomes due from the date of accident under the Workmen’s Compensation Act (now Employees Compensation Act). Interest on delayed payment also must be counted from the date of the industrial accident, the Supreme Court stated in the appeal case, Oriental Insurance Company vs Siby George. The insurance company argued that its liability starts from the date when the commissioner under the law orders payment, and not from the date of the accident. It cited some judgements of the Supreme Court itself which took this view. However, the court stated that there is already a judgment by four judges which has decided this issue, and therefore the latter judgments to the contrary by two-judge benches were made “in ignorance of the precedent” and therefore invalid.
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