KAMLA CHATURVEDI Vs. NATIONAL INSURANCE CO

JUDGEMENT

(1.) Leave granted.

(2.) Challenge in this appeal is to the judgment of a learned Single Judge of the Madhya Pradesh High Court, Jabalpur Bench, allowing the Misc. Appeal filed by the respondent No. 1 (hereinafter referred to as the Rs. Insurance Company). The controversy lies within a very narrow compass.

(3.) Challenge in the Misc. Appeal before the High Court was to the Award made by the Commissioner for Workmens Compensation, Labour Court No. 1 Gwalior (in short the Rs. Commissioner). A sum of Rs. 2,21,370/- along with interest at the rate of 12% per annum was awarded. The liability to make the payment was fixed on the Insurance company. In appeal the only ground raised was that in a claim arising under the Workmens Compansation Act, 1923 (in short the Rs. Act) interest is not payable by the Insurance company as there was no contract by the insurer with the insured with regard to the payment of interest. High Court accepted the stand placing reliance on a judgment of this Court in New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya, (2006) II LLJ 782 SC . It was held that the direction for payment of interest by the insurance company was not sustainable and it was held that the insurance company was not liable to pay any interest and if so advised the amount of interest could be recovered by the claimant from the employer.