Compensation to be paid when due and damages for default
Section 77 of the Code on Social Security, 2020 deals with compensation to be paid when due and damages for default. Compensation under section 76 shall be paid as soon as it falls due. The Act was enacted on 28 Sep 2020.
(1) Compensation under section 76 shall be paid as soon as it falls due.
(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the competent authority or made to the employee, as the case may be, without prejudice to the right of the employee to make any further claim.
(3) Where any employer is in default in paying the compensation due under this Chapter within one month from the date it fell due, the competent authority shall,—
(a) direct that the employer shall, in addition to the amount of the arrears, pay interest at such rate as may be prescribed by the Central Government, on the amount due; and
(b) if in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent. of such amount of arrears by way of damages:
Provided that an order for the payment of damages shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause as to why it should not be passed.
(4) The interest and the damages payable under sub-section (3) shall be paid to the employee or his dependant, as the case may be.
Section 77, The Code on Social Security, 2020 (Act 36 of 2020).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Oriental Insurance Co. LTD vs Siby George
Court's Decision & Legal Precedent
The Court held that compensation falls due on the date of the accident and not on the date of the Commissioner's order, so that the employer's liability and the default interest run from the accident itself; reaffirming Pratap Narain Singh Deo, it overruled the contrary two-Judge decisions in Mubasir Ahmed and Mohd. Nasir and treated interest on default as mandatory without a separate finding of unjustified delay.
On this section: It fixes the date from which compensation is due for the purposes of the obligation in section 77 to pay compensation as soon as it falls due, and hence the point from which default interest accrues.
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Bhagirathi Sahoo vs The Manager, the Oriental Insurance Co. LTD
Court's Decision & Legal Precedent
The Court applied the statutory default provision to hold the insurer liable to pay interest at twelve per cent on compensation disbursed late, treating payment of that interest along with the compensation award as a statutory obligation rather than a matter of discretion.
On this section: It illustrates the working of the default consequence in section 77 by quantifying the interest payable where compensation is not paid when it falls due.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 77
What have the courts held on Section 77 of the Code on Social Security?
Oriental Insurance Co. LTD vs Siby George is the leading judgment on this section among those set out below: It fixes the date from which compensation is due for the purposes of the obligation in section 77 to pay compensation as soon as it falls due, and hence the point from which default interest accrues. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 77 of the Code on Social Security?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Code on Social Security 77, section 77 Code on Social Security, section 77 of the Code on Social Security. People searching for it also type section 77 of code on social security. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Oriental Insurance Co. LTD vs Siby George.
What should I read with Section 77 of the Code on Social Security, and has it changed?
Its own text turns on section 76 (Amount of compensation), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 77 of the Code on Social Security enacted?
Section 77 of the Code on Social Security, cited as Code on Social Security 77, was enacted on 28 Sep 2020 as Act 36 of 2020. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5890 words
- 155. Power of central Government to make rules1551 words
- 131. Other modes of recovery1340 words
- 143. Power to exempt establishment1042 words
- 6. National Social Security Board and State Unorganised Workers’ Board1022 words
- 76. Amount of compensation946 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.