NATIONAL INSURANCE CO.LTD. Vs. GULABA RAM

JUDGEMENT

(1.) This appeal has been filed by the appellant Insurance Company against the order dated 29.11.2004 passed by the Commissioner under the Workmens Compensation Act, 1923 (hereinafter referred to as the Act), vide which a sum of Rs.1,42,680/ - besides interest at the rate of 12% pa. amounting to Rs.26,620/ - total amounting to Rs.1,69,300/ - was awarded to the claimants for the death of Parkash Chand deceased during the course of his employment. After hearing both sides, the Commissioner under the Act awarded the aforesaid amount of compensation including interest of the claimants to be paid by the appellant Insurance Company, being the insurer of the vehicle, which had met with an accident on 10.4.2003, resulting in the death of Parkash Chand deceased who was working as a conductor on the said vehicle at the time of the accident. The appellant Insurance Company was further directed by the Commissioner under the Act to deposit the aforesaid amount of Rs.1,69,300/ - within one month from the date of the award failing which it shall be liable to pay simple interest at the rate of 18% p.a. from the date of the award till the date of deposit. Aggrieved against the award of the Commissioner under the Act the appellant Insurance Company filed the present appeal in this Court.

(2.) Notice in this appeal was given to the respondents. I have heard the learned counsel for the parties and have gone through the courts carefully. So far as the quantum of compensation and the liability of the appellant Insurance Company to pay the amount of interest to the claimants -is concerned, in my opinion, there is no merit in this appeal to that effect, inasmuch as, the Commissioner under the Act had assessed the compensation payable to the claimants, after following the procedure laid down under the Act and applying the formula as given there in. Furthermore, there is nothing to show that in the insurance policy the appellant Insurance Company had excluded itself from its liability to pay interest on the amount of compensation. In this view of the matter, in my opinion, the Commissioner under the Act had rightly awarded the compensation amount to the claimants, besides interest and had rightly held the appellant Insurance Company liable to pay the compensation amount and the amount of interest to the claimants and no fault could be found with the same.

(3.) The learned counsel appearing for the appellant Insurance Company submitted before me that the Commissioner under the Act had no jurisdiction to grant penal interest at the rate of 18% pa. from the date of award till the date of deposit, in case the compensation amount was not deposited within on month from the date of the order passed by the Commissioner under the Act.