NEW INDIA ASSURANCE COMPANY LTD Vs. BUDHARAM

JUDGEMENT

(1.) HEARD.

(2.) THE appellant/insurance Company has preferred this appeal against the order dated 16th June, 1998 passed in W. C. Case No. 3/1989 (N. F.) by the Commissioner for workmen's Compensation, Labour Court, raipur (hereinafter referred to as the 'lower court') where by while awarding compensation of Rs. 36,747, for permanent disablement suffered by the workman/respondent No. 1 -Budharuram banjare due to accident arising out of and in course of his employment, the lower Court has imposed the liability upon the insurance Company for payment of penalty as well as interest on the amount of compensation of Rs. 36,747 awarded to the claimant.

(3.) MR. N. K. Agrawal, learned Senior advocate for the appellant/insurance Company conceded that in view of the dictum of the apex Court in New India Assurance Co. Ltd. v. Ram Dayal and others, since the insurance policy did not contain the exact time from which it commenced to operate, it became operative from the previous midnight of the date of insurance. The liability of the appellant/ insurance Company to pay compensation under the Workmen's Compensation Act, 1923 (henceforth the Act, 1923) is also not in dispute.