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Where the workmen’s compensation commissioner is of opinion that there was no justification for the delay in payment of compensation, he may direct the employer to pay, in addition to the amount of arrears and interests thereon, a further sum as penalty;
not exceeding 25% of such amount
not exceeding 50% of such amount
not exceeding 75% of such amount
none of the above
Employer must pay the compensation to the workman within one month of time. If employer fails to pay the compensation within one month of time, the commissioner can direct the employer to pay Compensation amount by adding 12% of simple interest per annum or specified by the Central Government.
If there is no proper reason or there is no justification by the employer for delay in payment of compensation, in that case the commissioner can direct the employer to pay extra sum of not exceeding 50% of compensation amount as the penalty. [Sec 4A (b)].
By: santosh ProfileResourcesReport error
MD ABID HUSSAIN
6 percent simple interest per annum.
Kennedy Rana
Simple interest should be 6% instead of 12% shown
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