The New India Assurance Company Limited vs Mariappan
2024 Latest Caselaw 19163 Mad

Madras High Court

The New India Assurance Company Limited vs Mariappan on 1 October, 2024

                                                                          C.M.A.(MD) No.1252 of 2024


                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                   DATED : 01.10.2024

                                                        CORAM

                                  THE HON'BLE MR.JUSTICE SUNDER MOHAN

                                            C.M.A.(MD) No.1252 of 2024
                                                       and
                                            C.M.P.(MD) No.13186 of 2024


                    The New India Assurance Company Limited,
                    41-B, Victoria Street,
                    Thoothukudi.                                           ... Appellant

                                                          Vs.

                    1.Mariappan
                      S/o.Nattar

                    2.J.M.Samuvel                                          ... Respondents

                    Prayer:- Civil Miscellaneous Appeal filed under Section 30 of the
                    Employee's Compensation Act, 1923 to set aside the order dated
                    23.02.2024 passed in E.C.No.65 of 2016 on the file of the Joint
                    Commissioner       of    Labour     Court/Commissioner        for      Employee's
                    Compensation at Thirunelveli.


                                   For Appellant       : Mr.V.Sakthivel

                                   For R2              : Mr.R.J.Karthick



                    _____________
https://www.mhc.tn.gov.in/judis
                    Page No. 1 of 6
                                                                        C.M.A.(MD) No.1252 of 2024


                                                   JUDGMENT

The instant appeal has been filed by the Insurance Company

challenging the direction issued by the Commissioner to them to pay the

interest on the compensation amount.

2. Since the finding on liability is not under challenge, the facts

leading to the filing of the claim petition are unnecessary for the disposal

of this appeal.

3. The appellant Insurance Company was directed to pay the

compensation of Rs.2,17,820/- along with interest at the rate of 12% per

annum from the date of the accident till the date of payment.

4. The learned counsel for the appellant submitted that the contract

of insurance clearly stipulated that the Insurance Company would not be

liable to pay interest for the compensation payable by them. The learned

counsel for the appellant has produced a copy of the Insurance Policy in

support of his submission.

_____________ https://www.mhc.tn.gov.in/judis

5. The learned counsel for the second respondent, employer, does

not dispute the terms of the contract of insurance. The learned counsel for

the second respondent would further submit that they will be liable to pay

interest only from the date of the claim petition and not from the date

of the accident, and therefore, the award to that extent may be

modified.

6. In view of the order proposed to be passed, the notice to the

claimant, the first respondent herein, is not necessary and is therefore

dispensed with.

7. The only point for consideration in the instant appeal is whether

the appellant is liable to pay interest on the compensation amount.

8. Admittedly, the contract of insurance has an exclusion clause

regarding the payment of interest on the compensation amount payable by

the Insurance Company. Therefore, this Court is of the view that the

appellant cannot be directed to pay interest on the compensation amount.

However the employer, the second respondent herein, is liable to pay the

_____________ https://www.mhc.tn.gov.in/judis

interest on the compensation amount at the rate of 12% per annum from

the date of the accident till the date of payment.

9. It is reported by the learned counsel for the appellant/Insurance

Company that the appellant has already deposited the compensation

amount along with the interest. The first respondent/claimant is permitted

to withdraw the compensation amount deposited by the appellant,

excluding the interest portion.

10. The second respondent shall deposit the interest on the

compensation amount at the rate of 12% per annum from the date of the

accident till the date of payment, within a period of six weeks from the

date of receipt of a copy of this Judgment. On such a deposit, the first

respondent/claimant is permitted to withdraw the same.

11. The appellant/Insurance Company shall be permitted to file an

application before the Commissioner for refund of the excess amount

deposited by them, if any.

_____________ https://www.mhc.tn.gov.in/judis

12. In the result, this Civil Miscellaneous Appeal is partly allowed.

No costs. Consequently, the connected Miscellaneous Petition is closed.

01.10.2024 Index: Yes/ No Neutral Citation: Yes / No Speaking Order/Non-Speaking Order

JEN

Copy To:

1.The Joint Commissioner of Labour Court (Commissioner for Employee's Compensation) Thirunelveli.

2.The Section Officer, V.R.Section, Madurai Bench of Madras High Court, Madurai.

_____________ https://www.mhc.tn.gov.in/judis

SUNDER MOHAN, J.

JEN

and

01.10.2024

_____________ https://www.mhc.tn.gov.in/judis