Employee's Compensation Act: Liability To Pay Interest On Compensation Amount Is From Date Of Accident: Supreme Court In the case of Shobha vs Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Ltd. The Supreme Court observed that the liability to pay the interest on the amount of arrears/compensation under Employee's Compensation Act, 1923, shall be from the date of accident and not from the date of the order. Appeal against High Court order which directed that the interest @ 12% p.a. shall become payable from the period after expiry of one month from the date of the Commissioner's order. While directing the employer to pay the interest from the date of the order passed by the Commissioner. The supreme court said that, the High Court has not at all considered Section 4A(3)(a) and has considered Section 4A(3)(b) only, which is the penalty provision - Claimants shall be entitled to the interest @ 12% p.a. on the amount of compensation as awarded by the Commissioner from the date of the incident. In the view of the above the supreme court ordered to pay compensation amount to be paid from date of accident and also granted penalty for employer under Sec 4A3(b) and uphold the order by the Commissioner “Claimants shall be entitled to the interest @ 12% p.a. on the amount of compensation”. With a team of Law experts, Reddy & amp; Reddy Law Firm has extensive experience and involvement in legal disputes. We are regularly involved in representation in the district and high courts in India.