CHIEF EXECUTIVE OFFICER, AGARTALA MUNICIPAL COUNCIL Vs. DIVISIONAL MANAGER, UNITED INDIA INSURANCE COMPANY LTD ; DULAL SARKAR

JUDGEMENT

(1.) This appeal under Section 30(aa) of the Workmen's Compensation Act (W.C. Act) was admitted on the following question of law:-

(2.) There is no manner of doubt that the Insurance Company can avoid its liability to pay interest in a case arising out of the Workmen's Compensation Act. However, if it has to escape its liability to pay the interest, it must prove that the insurance policy contained an exclusion clause whereby the Insurance Company was not liable to pay interest. In the present case, the insurance policy has been placed on record. I have perused the contract of insurance and it does not have any exclusion clause whereby the Insurance Company is exonerated from paying the interest. As per this policy, the risk covered is Workmen's Compensation insurance as per policy. There is no exception that the Insurance Company will not be liable to pay interest. Therefore, the learned Commissioner was wrong in discharging the Insurance Company of its liability.

(3.) In view of the above discussion, the appeal is allowed. The appellant-employer is exonerated from the liability to pay interest and it shall be the responsibility of the Insurance Company to pay the interest also.