NEW INDIA ASSURANCE CO LTD Vs. LILLA FRANCIS

JUDGEMENT

(1.) The appellant is the second opposite party in the proceedings under Section 22 of the Workmen's Compensation Act. Besides ordering payment of compensation amount of Rs.2,71,120/-, the appellant has also been mulcted with liability to pay interest at 12% from 23/5/2008(date of the accident of the employee) till the date of deposit within 30 days of receipt of that order. It is the said direction, which is impugned before us.

(2.) We heard the learned senior counsel for the appellant and the learned counsel for respondents 1 to 4.

(3.) The learned senior counsel for the appellant would contend that it is a clear case where there is a contract of insurance. Significantly, there is a clause in the contract by which the insurer has been excluded from the liability to pay interest. This fact is not in dispute. However, the Commissioner has proceeded to award interest on the basis that intimation has been given by the employer and that the matter is delayed by the appellant. He submits that in view of the clear provision contained in the contract, the appellant cannot be called upon to pay interest. He relied on the judgments of the Apex Court in New India Assurance Co.Ltd. v. Harshadbhai Amrutbhai Modhiya, 2006 2 KerLT 667 , Kancherla Bhagya v. K.Balakotaiah and another, 2004 ACJ 453 and unreported judgment in MFA No. 8/2006.