MANAGER ORIENTAL INSURANCE CO LTD Vs. GURUVAMMA

JUDGEMENT

(1.) THESE appeals have come up today for admission. The substantial questions of law that arise for consideration in all the five appeals being common, they are taken up together for final disposal in the presence of counsel appearing for the parties.

(2.) THE brief facts in each of the case are as under:

(3.) UNDER the Workmen's Compensation Act there is an obligation on the employer to pay compensation as and when it falls due. Section 4-A(3)(a) and (b) of the Act provides that whenever there is failure on the part of employer to pay compensation adjudicated by Commissioner for Workmen's Compensation as and when it falls due there is liability on the employer to pay interest on the compensation awarded. The Act also specifies the percentage of interest that is required to be paid. In the aforesaid proceedings initiated by the claimant seeking compensation the primary liability to pay compensation and as well as interest is on the employer. However, the employer can enter into an agreement with insurance company and seek indemnification of the same by obtaining necessary policy in that behalf. The liability of insurance company is subject to the terms of policy. In the instant case, the policy under which insurance company has agreed to indemnify the liability of employer contains an endorsement, which excludes its liability to pay interest.