ORIENTAL INSURANCE LTD Vs. SUNDARI

JUDGEMENT

(1.) THE short question involved in this appeal filed by appellant insurer is, whether the liability of the insurance company arising under Workmen's Compensation act extends to the payment of the principal amount of compensation computed by the Commissioner for Workmen's compensation and interest levied under section 4-A (3) (a) of Workmen's compensation Act.

(2.) IN the instant case, the Commissioner for Workmen's Compensation having noticed that both the insurer and insured have failed to deposit the compensation amount to which claimants were entitled within the prescribed period, has directed both the insured and the insurer to pay interest at the rate of 6 per cent per annum on the principal amount of compensation computed under Section 4-A (3) (a) of the workmen's Compensation Act. Appellant insurance company is aggrieved by that part of the order whereby the Commissioner has directed the insurance company to pay the interest at 6 per cent per annum on the principal amount of compensation.

(3.) THERE is no dispute regarding the quantum of compensation payable and all that has to be considered is whether the appellant insurance company is liable to pay the interest.