The Karnataka High Court, in Sanjeev Kumar vs. Sri Akash &Anr. (Misc. FA No. 201018/2019), on June 3, 2025, modified the award issued by the Industrial Tribunal by increasing the interest payable on the compensation from 7.5% per annum to 12% per annum, effective from the date of the incident. In doing so, the Court relied on the precedent set by the Supreme Court in Shobha and Others vs. Chairman, Vithalrao Shinde Sahakari SakharKarkhana Limited and Others, 2022 SCC OnLine SC 308, which held that interest under the EC Act must be levied at 12% per annum from the date the compensation becomes due. The High Court reaffirmed this principle and accordingly enhanced the rate of interest in the present matter.
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