New India Assurance Company Ltd. v. Rajendra Singh
2007-01-12
K.S.RATHORE
body2007
DigiLaw.ai
JUDGMENT 1. - This misc. appeal is directed against the award dated 28.10.2004 passed by the Workmen Compensation Commissioner. 2. The relief claimed in this appeal is with regard to the interest which has been awarded by the Workmen Compensation Commissioner and learned counsel for the appellant submits that the interest cannot be levelled against the New India Assurance Company. 3. In support of his submissions, learned counsel for the appellant placed reliance on the judgment rendered by Hon'ble the Supreme Court in the case of P.J. Narayan v. Union of India and Others, reported in 2004 ACJ 452 wherein the writ petition was for the purpose of directing the insurance company to delete the clause in the insurance policy which provides that in case of compensation under the Workmen's Compensation Act, 1923 the insurance company will not be liable to pay interest. Hon'ble the Supreme Court has observed as under "There is no statutory liability on the insurance company. The statutory liability under the Workmen's Compensation Act is on the employer. An insurance is a matter of contract between the insurance company and the insured. It is always open to the insurance company to refuse to insure. Similarly, they are entitled to provide by contract that they will not take on liability for interest. In the absence of any statute to that effect, insurance company cannot be forced by court to take on liabilities which they do not want to take on". 4. Having considered the ratio decided by Hon'ble the Supreme Court and upon careful perusal of the award impugned passed by the Workmen's Compensation Commissioner, the interest at the rate of 9% on the amount awarded by the Commissioner is contrary to the clause of the contract and as per the judgment rendered by Hon'ble the Supreme Court in the case of P.J. Narayan (supra), the Assurance Company is not liable to make the payment of interest. 5. Consequently, the impugned award dated 28.10.2004 is hereby quashed and set aside. So far interest against the New India Assurance Company concerned and the workman can recover the interest from the employer. The rest part of the award is upheld.Thus appeal stands partly allowed.Appeal Allowed Partly Against Insurer. *******