NATIONAL INSURANCE CO LTD Vs. ATARER NACHHA

JUDGEMENT

(1.) In both the aforesaid appeals, I am called upon to answer as to whether in an award, passed under the provisions of Workmen's Compensation Act, 1923, an Insurance Company can also be held liable to pay interest on the principal amount of compensation ?

(2.) The appeals are arising out of judgment & award dated 31.07.2007 passed by the Commissioner under W.C. Act, West Tripura, Agartala in Title Suit No. 3 of 2005 and award dated 06.06.2007 passed in Title Suit No. 52 of 2005. The legal heirs of the deceased who were engaged by the owners of motor vehicles to drive their respective vehicles filed both the claim cases. After full length enquiry the Commissioner has awarded compensation of Rs. 4,33,060/- and Rs. 3,47,540/- adopting the formula prescribed under the W.C. Act. The un-disputed facts are that the offending vehicles were duly insured with the Insurance Companies on the date of the accident. Besides this, there is also no dispute that the deceased were the employees within the meaning of Section 2 sub-sec. (1) (e) of the W.C. Act. The insurance companies have also practically not alleged any patent illegality in quantifying the compensation. In this way the appellants are only aggrieved by the direction of the Commissioner to pay interest @12% per annum on the awarded amount from the date of filing of the claim petitions.

(3.) I have heard Sri A. Lodh and Sri S. M. Ali learned counsels representing the insurance companies. The learned counsels made elaborate submissions even at the admission stage with regard to their liability to pay interest on the principal amount of compensation. I have also heard the arguments of Sri Somik Deb and Sri T.D. Majumder and Sri S.B. Debnath, learned counsel appearing for the claimants and owner of vehicles/respondents.