Madras High Court
The Divisional Manager vs Chinnasamy on 28 October, 2024
C.M.A.(MD) No.1306 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 28.10.2024
CORAM:
THE HONOURABLE MR.JUSTICE SUNDER MOHAN
C.M.A.(MD)No.1306 of 2024
and
C.M.P.(MD)Nos.13994 & 14107 of 2024
The Divisional Manager,
New India Assurance Company Limited,
F-46, I Main road, Mangalam Buildings,
25th Floor, Anna Nagar East,
Chennai. ...
Appellant
vs.
1.Chinnasamy,
2.Chinnakannu,
3.The General Manager,
Hudson Agro Product Limited,
Santhan Chettivalsu,
melakaraipatti (post),
Palani Taluk, Dindigul. ...
Respondents
PRAYER: Civil Miscellaneous Appeal filed under Section 30 of the
Employee Compensation Act against the order dated 28.12.2023 in
E.C.No.02 of 2020 on the file of the Commissioner for Employees
Compensation Court at Dindigul.
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Page No. 1 of 6
C.M.A.(MD) No.1306 of 2024
For appellant : Mr.V.Sakthivel
For Respondents
for R1 & R2: Mr.S.Pugalendhi
for R3 : Mr.R.Sureshkumar
*****
JUDGMENT
The insurance company has challenged the award of the
commissioner on the sole ground that they are not liable to pay interest on
the award amount as per the terms of the policy of the insurance.
2. Since the finding on liability is not under challenge, the facts
leading to the filing of the claim petition before the Commissioner of
Employees Compensation are not necessary for the disposal of this appeal.
3. The learned counsel for the appellant would submit that as per
the terms of Ex.P7, the copy of the policy document, the insurance
company is not liable to pay interest or penalty imposed on the insured on
account of the failure to comply with the requirements of the Workmen
Compensation Act.
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4. The learned counsel for the claimants/respondents 1 and 2, per
contra, submitted that they are entitled to interest, whether it is payable by
the appellant or by the insured/third respondent.
5. The learned counsel for the third respondent/the insured owner,
per contra, submitted that the award of the commissioner is just and
reasonable and no interference is called for.
6. The above appeal raises the following substantial question of
law:
“1. Whether the Commissioner of Employees
Compensation is right in directing the appellant insurance
company to pay interest for the award amount from the date
of accident till date of payment as against the terms and
conditions of the Workmen Compensation Policy issued by
this appellant to the second respondent/first respondent?”
7. The relevant portion of the insurance policy/Ex.P7, reads as
follows:
“Provided that the Insurance granted
hereunder is not extended to include:
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(i)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.”
8. In view of the terms of the policy, it is clear that the appellant
would be liable to pay only the compensation amount and not the interest
on the compensation amount.
9. Hence, this Court is of the view that the award of the
Commissioner, insofar as the direction to the appellant to pay the interest,
cannot be sustained. The insured is liable to pay the interest to the
claimants on the award amount. The question of law is answered
accordingly.
10. The third respondent shall deposit the interest at 12% p.a from
the due date till the date of deposit on the compensation amount within a
period of six weeks from the date of receipt of a copy of this order.
11. The respondents 1 and 2 are permitted to withdraw the
compensation amount deposited by the appellant and the interest to be
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deposited by the third respondent by filing a suitable application before
the Commissioner.
12. The appellant shall be permitted to withdraw the excess amount
deposited, if any, towards interest by filing a suitable application before
the Commissioner.
13. In the result, this Civil Miscellaneous Appeal is partly allowed.
No costs. Consequently, connected miscellaneous petitions are closed.
28.10.2024
NCC : Yes/No
Index : Yes / No
Internet : Yes / No
apd
To
1.The Commissioner for Employees Compensation Court at Dindigul.
2.The Section Officer,
V.R. Section,
Madurai Bench of Madras High Court,
Madurai.
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SUNDER MOHAN,J
apd
28.10.2024
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