SAT PAL Vs. SUBASH CHANDER JINDAL ETC

JUDGEMENT

(1.) THE only grievance made by learned counsel for the petitioners is that no interest as payable under the workmen's Compensation Act has been awarded against the Insured or co-Insurer. In order to answer the question raised, it would be pertinent to refer to Section 3 (l) (iii) of the Workmen's Compensation Act, 1923 which runs :

(2.) WE have gone through the Provisions of the Act as well as the relevant conditions in the contract of insurance which may be reproduced in varbatim herein:

(3.) WITHOUT expressing any opinion with regard to penalty as that the Insurer cannot escape from its liability to pay interest which is undoubtedly the liability of the Insured and which the Insurer has to indemnify under the agreement. We find support from the decision of this Court in Smt. Sheela Rani and Ors. v. Mehar Chand and Ors. , (1993-2)104 P. L. R. 105 and we have no reason to differ with the same. Consequently, we are of the considered view that respondent No. 2 is liable to pay interest at the rate of 6% per annum from the date of the accident till the date of payment.