NEW INDIA ASSURANCE CO. LTD. Vs. ELDOS

JUDGEMENT

(1.) The insurer has come up with this appeal mainly pointing out two aspects (i) the insurer ought not to have been mulcted with the liability in the light of the contract which excludes payment of interest on the compensation amount as per the schedule to the policy and (ii) the compensation awarded is far greater when compared to the injury sustained.

(2.) The first among these two contentions really involves a substantial question of law whereas the latter does not. Therefore, in this appeal under S.30 of the Workmen's Compensation Act, 1923 (hereinafter referred to as "the Act" ), the first aspect alone need be examined.

(3.) The liability to pay interest arises out of S.4A of the Act which was introduced as per the Workmen's Compensation (Amendment) Act, 1959. The schedule to Ext. M - 1 policy clearly indicates that the liability in terms of the said Amendment Act is undertaken by the insurer. But at the same time, a proviso is added in the said schedule that liability on account of failure on the part of the insured to comply with the requirement laid down under the Act shall not be fastened on the insurer.