The Oriental Insurance Co. Ltd vs K.K. Chacko
2024 Latest Caselaw 27473 Ker

Kerala High Court

The Oriental Insurance Co. Ltd vs K.K. Chacko on 11 September, 2024

Author: T.R. Ravi

Bench: T.R.Ravi

                                                      2024:KER:69260
MFA (ECC) NO. 15 OF 2014

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             IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
                THE HONOURABLE MR. JUSTICE T.R.RAVI
 WEDNESDAY, THE 11TH DAY OF SEPTEMBER 2024 / 20TH BHADRA, 1946
                     MFA (ECC) NO. 15 OF 2014
        AGAINST THE ORDER DATED 30.09.2011 IN WCC NO.4 OF 2007 OF
    COMMISSIONER FOR WORKMEN'S COMPENSATION (DEPUTY LABOUR
                      COMMISSIONER), KOTTAYAM



APPELLANT/2ND OPPOSITE PARTY:

            THE ORIENTAL INSURANCE CO. LTD.
            REPRESENTED BY ITS DULY AUTHORISED OFFICER,
            METRO PLAZA, NORTH RAILWAY STATION ROAD,
            ERNAKULAM.

            BY ADV.SRI.V.P.K.PANICKER



RESPONDENTS/1ST OPPOSITE PARTY AND APPLICANTS:

    1       K.K. CHACKO
            PROPRIETOR, M/S.K.P.RUBBERS,
            DEVELOPMENT PLOT, POOVATHURUTHU POST,
            KOTTAYAM - 686012.

    2       USHA SALAIB,
            W/O.LATE SALAIB.P.S.,
            VELLIYAMKUNNEL HOUSE,
            KUNNAMTHANAM POST, THIRUVALLA,
            PATHANAMTHITTA DISTRICT-689 581.

    3       SACHIN SALAIB,
            S/O.LATE SALAIB.P.S.,
            (MINOR SON REPRESENTED BY HIS MOTHER USHA SALAIB)
            VELLIYAMKUNNEL HOUSE,
            KUNNAMTHANAM POST,
            THIRUVALLA,
            PATHANAMTHITTA DISTRICT -689 581.
                                                  2024:KER:69260
MFA (ECC) NO. 15 OF 2014

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    4     BHAVANI,
          W/O.VISWAVANDHYAN,
          PIUTHUVEEDU HOUSE,
          CHERUKARA POST, KAINADY,
          ALLEPPY - 688 506.

          BY ADV.SRI.S.NIDHEESH


     THIS MFA (ECC) HAVING BEEN FINALLY HEARD ON 11.09.2024,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                        2024:KER:69260
MFA (ECC) NO. 15 OF 2014

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                             T.R. RAVI, J.
              --------------------------------------------
                     M.F.A. (ECC) No.15 of 2014
               --------------------------------------------
             Dated this the 11th day of September, 2024

                             JUDGMENT

The appeal is filed by the Insurer being aggrieved by the

direction to pay interest on the compensation awarded. The

contention of the appellant is that in a non-statutory policy, they

are not liable to pay interest, particularly since there is an

exclusion clause contained regarding the payment of interest.

2. Reliance is placed on the decision of the Hon'ble

Supreme Court in New India Assurance Co. Ltd. V.

Harshadbhai Amrutbhai Modhiya reported in (2006 (5) SCC

192) and National Insurance Co. Ltd. V. Usha reported in

(2023 KHC 9219) in support of the above contention.

3. In view of the settled legal position, the appellant

cannot be made liable for the payment of interest. The appeal is

allowed to the extent it mulcts the Insurance Company with the

liability to pay interest. The above benefit is not available to the

employer, who is principally liable for the payment. The appellant 2024:KER:69260 MFA (ECC) NO. 15 OF 2014

is permitted to withdraw the amount deposited with the

Commissioner towards interest.

Sd/-

T.R. RAVI JUDGE

Pn