Logo
Court Book - India Code App - Play Store

advertisement

Punjab & Haryana HC Modifies Compensation Deadline Due to Unintentional Delay

Vivek G.

The Punjab & Haryana High Court modified its earlier order in Nathu Ram's case, revising the interest clause on delayed compensation of ₹6 lakh due to unintentional delay by respondent.

Punjab & Haryana HC Modifies Compensation Deadline Due to Unintentional Delay

In a recent decision, the Punjab & Haryana High Court addressed a review plea filed in RA-LP No. 26 of 2025 in LPA No. 1782 of 2018 by the employer (respondent No.2) in a case involving petitioner Nathu Ram. The court slightly modified its previous judgment dated 12.09.2024 regarding the compensation timeline.

हिंदी में पढ़ें

The matter was heard by Hon’ble Mr. Justice Sheel Nagu, Chief Justice, and Hon’ble Mr. Justice Sanjiv Berry.

Background of the Case

On 12th September 2024, the High Court had ordered that ₹6 lakh compensation be paid to petitioner Nathu Ram by the employer, in lieu of reinstatement. The employer was directed to make the payment within 30 days, failing which, an interest of 8% per annum would apply from the date of the original Labour Court award—13.08.2009.

Read also: Supreme Court Grants Anticipatory Bail to Meera Devi in NDPS Case

“The said amount shall be paid to the workman within a period of 30 days, from today, failing which, the same shall carry interest @ 8% per annum from the date of passing of the award i.e. 13.08.2009.” — Original order dated 12.09.2024

Respondent No.2 (the employer) filed a review application, citing that the delay in payment was due to the transfer of the dealing clerk. As soon as they became aware of the judgment, a cheque dated 19.02.2025 was issued and handed over to the petitioner’s counsel.

However, the petitioner’s lawyer objected, stating that the employer was already aware of the order since their counsel was present during the hearing. Therefore, the delay could not be justified on grounds of lack of knowledge.

Read also: Supreme Court: No Fixed Deadline for Speaker in Disqualification Cases

While acknowledging that the employer’s legal counsel was indeed present during the original judgment and the delay technically could not be excused, the court still considered the fact that the compensation amount was eventually paid.

Hence, the High Court modified the interest clause. Now, interest at 8% per annum would apply from the date of the judgment (12.09.2024) if the amount was not paid within the stipulated 30 days, rather than from the original Labour Court award in 2009.

“The said amount shall be paid to the workman within a period of 30 days, from today, failing which, the same shall carry interest @ 8% per annum from the date of passing of this order i.e. 12.09.2024.” — Modified clause dated 31.07.2025

Read also: Supreme Court Quashes FIR in Bengaluru Land Dispute, Highlights Misuse of Criminal Law

With this adjustment, the court disposed of the review application. The modification served as a balanced approach—acknowledging both procedural delay and eventual compliance.

Case Title: Nathu Ram vs Presiding Officer, Labour Court and Another
Case Number: RA-LP No. 26 of 2025 in LPA No. 1782 of 2018
Reserved On: 25 July 2025
Pronounced On: 31 July 2025
Petitioner: Nathu Ram
Respondents: 1. Presiding Officer, Labour Court 2. Employer (Private/Company — specific name not mentioned in order)