PATIDAR, CONTRACTOR AND ANR. Vs. RAMA AND ANR.

JUDGEMENT

(1.) In this miscellaneous appeal filed under Sec. 30 of the Workmen Compensation Act, 1923, employer appellants are challenging award dated 03.07.1997 passed by the Commissioner, Workmen Compensation, Bnaswara in claim Case No. 8/96, whereby, the learned Commissioner allowed compensation of INR 1,02,475.00 along with penalty of INR 51,238.00 and interest at the ate of 12% from the date of accident which is 16.05.1996.

(2.) During the course of arguments, which disputing adjudication made by the learned Commissioner, learned Counsel for the appellants submits that the learned Commissioner has committed an error while imposing the interest liability only against the appellants and not against the insurance company. Further, it is submitted that the insurance company has been liable to pay compensation of INR 1,02,475.00 has not challenged the order impugned also; but appellants are challenging the liability of interest imposed upon the appellants. So also, finding on issue No. 4 with regard to releasing the insurance company from the liability of interest upon the award on the ground that according to provisions of the Act the employer is under obligation to pay compensation within one month failing which there is provision for payment of interest.

(3.) Learned Counsel for the appellant submits that without any cogent reasons the learned Commissioner has imposed the liability of interest upon the appellant-employers whereas award has been passed against the New India Insurance Company; meaning thereby, till adjudication, the Insurance Company has failed to pay the compensation knowing well that workman was insured with them through the employer. Learned Counsel for the appellants invited my attention towards recent judgment of the Honourable Supreme Court, reported in MACD 2009 S.C. 4, in which, while considering the earlier judgment in New India Assurance Co. Ltd. Vs. Harshadbhai Amrutbhai Modhiay, MACD 2006 (2) (SC) 673, so also, judgment in the case of Ved Prakash Garg Vs. Premi Devi and Ors., (1997) 8 SCC 1, it has been held that upon the facts if it appears that insurance company or employer has failed to pay compensation, then, they are liable to pay interest.