VARSHABEN MAHENDRAKUMAR SACHANIYA Vs. RAHIMBHAI JILMAHMADBHAI DHEBA

JUDGEMENT

(1.) Opponent No.1 - Rahimbhai Jilmahmadbhai Dheba, workman filed Workmen Compensation (non-fatal) Application No.56 of 2000 before the Court of Workmen Compensation Commissioner, claiming compensation worth Rs.3 lacs for the injuries received by him during accident while on duty. Learned Commissioner by his impugned Judgment and order dated 23.3.2004 allowed the application and ordered opponent No.2 National Insurance Co. Ltd. to pay Rs.3,12,350/- to the workman. However, the learned Commissioner ordered the present appellant Varshaben Mahendrakumar Sachaniya - owner - original opponent No.2, to pay interest at the rate of 9 % p.a. on the said amount and also to pay penalty at the rate of 25 per cent.

(2.) This Appeal is preferred by the appellant - original opponent No.2 Varshaben only on the point of interest on the amount awarded by the learned commissioner.

(3.) It was submitted by learned Counsel Shri Soni for the appellant that learned Commissioner wrongly relied on the Judgment of the Hon'ble Supreme Court in Writ Petition (Civil) No.341/03 (P.J.NARAYAN v/s. UNION OF INDIA & ORS., reported in 2004 ACJ 452) in not holding the Insurance Company liable to pay the interest on the amount awarded. He submitted that in view of the Judgment of the Hon'ble Supreme Court in the case of VED PRAKASH GARG v/s. PREMI DEVI, reported in 1998 ACJ 1 (SC) the Insurance Company has to pay the interest on the amount awarded. The said Judgment was subsequently followed by the Apex Court in its later decision of L.R.FERROR ALLOYS LTD. v/s. MAHAVIR MAHTO & ANR., reported in 2001 ACJ 645.