The New India Assurance Company Ltd v. Smt. Damanath & Ors.

of 2005, Smt. Damanath & others Vs Kanti Ballabh Joshi & others.

Brief facts of the case are that Joganath (deceased) was working at Vairaj Side as a labourer and during the course of his employment he died on 10.08.2000 due to electric current. According to the claimant, the deceased was working as a labourer under the employment of Kantibalabh Joshi, who was doing the work of National Hydro Electric Power Corporation Ltd. The claimant is the wife of the deceased and dependent upon him. Therefore, she filed an application under the provision of Workmen(cid:146)s Compensation Act, 1923 before learned Workmen Compensation Commissioner for a compensation of Rs. 1,96,555/- (including interest) in lieu of the death of her husband.

Thereafter, notices were issued to the opposite parties. On the receipt of the notices, the opposite parties filed 2 their separate written statements before learned Workmen(cid:146)s Compensation Commissioner. After hearing learned counsel for the parties and perusing the entire material available on record, learned Workmen(cid:146)s Compensation Commissioner has decreed the petition for a sum of Rs. 3,04,939/- in favour of the claimant vide judgment and award dated 06.06.2007.

Feeling aggrieved by the aforesaid judgment and award, the appellant has preferred this appeal before this Court.

Heard Sri M.K. Goyal, learned counsel for the appellant, Sri Alok Mehra, Advocate, holding brief of Sri Manoj Tiwari, learned counsel for the respondents and perused the record.

Learned counsel for the appellant has submitted before the Court that learned Workmen(cid:146)s Compensation Commissioner has committed error while imposing the liability of interest upon the Insurance Company/appellant. The appellant cannot be held liable to pay the interest on the awarded amount of compensation as has been imposed by the learned Workmen Compensation Commissioner.

In order to resolve the sole controversy whether the Insurance Company liable to pay interest on compensation amount awarded by the learned Workmen(cid:146)s Compensation Commissioner or not?. According to learned counsel for the appellant as per condition of insurance workmen(cid:146)s compensation policy the insurance company cannot be held liable to pay any interest/penalty. Perusal of proviso (i) inserted to the heading Law(s) (1), shows that the 3 insurer has been excluded from paying any interest and/or penalty imposed on the insured on account of his/her failure to comply with the requirements laid down under the W.C. Act

1923. It has not been specifically mentioned in the insurance policy that the insurance company shall not be liable to pay any interest to the claimants on the compensation amount.

In instant case learned Workmen(cid:146)s Compensation Commissioner has fixed the liability upon the insurer as there has been default in paying the compensation to the claimants on the part of the insurance company. It is the specific case of the claimants that the employer as well as the insurance company were aware of the death of the workman from the very beginning and claimants have been making demand of compensation from them right from the time of the death of the workman in the accident. Copy of notice dated 14-10-2004, sent by the Advocate on behalf of the claimants to the contractor, Manager, N.H.P.C. and the Branch Manager, The New India Assurance Company Ltd also shows that the claimants have been making repeated demands from the contractor, N.H.P.C. as well as New India Assurance Company from 10-8-2000, but no compensation was paid to the claimants. Here it may also be noted that the death of workman during the course of his employment has been proved. It is also proved that workman was insured with New India Assurance Company under Workman Compensation Insurance and the insurance company was liable to pay compensation for the death of the deceased but the insurer has not paid the compensation inspite of repeated demands of the claimants. Therefore, the learned Workmen(cid:146)s Compensation Commissioner has rightly held the insurance company to pay the interest. I do not find any infirmity in the 4 finding recorded by the tribunal. The impugned judgment and award is liable to be confirmed.

For the reasons aforesaid, the appeal lacks merit and is liable to be dismissed.