JUDGMENT 1. - This misc. appeal under Section 30 of the Workmen' Compensation Act, 1923 (hereinafter 'the 1923 Act') has been filed by the non-claimant Narendra Kumar the insured of the vehicle Truck No. RJ-02/G-1804, against the judgment dated 20-6-2002 passed by the Workmen' Compensation Commissioner, Kota (hereinafter 'the Commissioner'), whereby the Commissioner found the claimant Fajru @ Bavanna (hereinafter 'the claimant') entitled to compensation for a sum of Rs. 1,29,489/-, of which a sum of Rs. 1,13,190/- had already been paid by the insurer on 20-12-2000. Consequently the remainder Rs. 16,299/- was payable by the insurer. The Commissioner however directed that interest at the rate of 12% on the whole amount of compensation found payable from 18-8-1999 to 19-12-2000 would be to the account of insured Narendra Kumar, while thereafter from 20-12-2000 till the date of payment interest was to be borne by the insurer albeit only on the amount of Rs. 16,299/-. 2. The non claimant insured now the appellant in this appeal is aggrieved of the award related to the extent of levy of interest on him on the compensation determined for the period between the date of accident 18-8-1999 upto 19-12-2000. 3. Heard learned counsel for the parties and perused the impugned judgment dated 20-6-2002. 4. The sole issue agitated in the present appeal by the insured is that the insured has been made liable for payment of interest on the amount of compensation found payable to the claimant contrary to the judgment of the Hon'ble Supreme Court in case of Ved Prakash Garg v. Prem Devi [1998 (1) TAC 215 (SC)]. Counsel submits that consequently substantial question of law which arises in the appeal are: 1. Whether the learned Workmen Compensation Commissioner has committed serious error in directing the appellant to make the payment of interest over the compensation amount to the claimant, even though the vehicle in question was insured with the respondent No.2 and the required premium on this count was paid? 2. Whether under Section 4A of the Workmen compensation Act, 1923 the workmen Compensation Commissioner is competent to award interest against the employer, even if admittedly the insurer has not satisfied its liability, despite the notice given by the employer? 5. Mr. Tripurari Sharma, appearing on behalf of the Oriental Insurance Company Ltd. has submitted that the Hon'ble High Court of Patna in the case of United India Insurance Co.
5. Mr. Tripurari Sharma, appearing on behalf of the Oriental Insurance Company Ltd. has submitted that the Hon'ble High Court of Patna in the case of United India Insurance Co. Ltd. v. Manjit Kaur [1998 (1) TAC 295 (Pat.)] has held the liability of insurer on account of interest can be fixed only from the date of knowledge of the accident or the date of filing of claim petition, whichever is latter. Counsel submitted that no sooner the insurer company was informed of the accident on 13-9-1999 it had deposited the interim compensation payable as per its estimation in an amount of Rs. 1,13,190/- on 20-12-2000. It is submitted that in this view of the matter, the learned Commissioner has rightly held that on the total amount of compensation Rs. 1,29,489/- found payable to the claimant, subsequent to adjustment of Rs. 1,13,190/- earlier paid by the insurer, the insurer was liable to pay only the remainder amount Rs. 16,299/- with interest at the rate of 12% per annum from 20-12-2000 till the date of payment and liability to pay interest from the date of the accident till 20-12-2000 would be on the insured. 6. Having heard learned counsel for the parties, I am of the considered view that the question of law framed in this appeal have to be decided in favour of the insured. It is an admitted fact that notice of the accident of the vehicle in question on 18-8-1999 resulting in the death of Kasamdeen, the conductor of the vehicle was sent to the insurer by the insured employer. On receipt of information on 13-9-1999, the insurer deposited Rs. 1,13,190/- vide cheque No. 3488060 dated 4-12-2000 on 20-12-2000. It is thus evident that within 25 days of the accident of 18-8-1999, requisite information had been supplied by the insured to the insurer. In this view of the matter, it was upon the insurer to deposit of the amount of compensation or any part of it in terms of the contract between the insured and insurer. The amount was however deposited by the insurer on 20-12-2000. The whole of the liability towards compensation and interest thereon was lawfully to the account of the insurer under his contract with the insured.
The amount was however deposited by the insurer on 20-12-2000. The whole of the liability towards compensation and interest thereon was lawfully to the account of the insurer under his contract with the insured. In the facts of the case in my considered opinion, the judgment of the Hon'ble Supreme Court in the case of Ved Praskash Garg (supra) attracts fully to the present case. 7. Consequently, the appeal is allowed. It is directed that the due interest on the amount of compensation as determined by the Commissioner shall be payable by the insurer the Oriental Insurance Company Ltd. Branch Nagali Chauraha, Alwar and the non claimant insured shall correspondingly stand absolved of all liability on account of interest on the compensation.Appeal Allowed as Above. *******