IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE M.L.JOSEPH FRANCIS TUESDAY, THE 9TH AUGUST 2011 / 18TH SRAVANA 1933 MFA.No. 65 of 2008 -------------------------------- (AGAINST THE ORDER DATED 14.3.2008 OF THE COURT OF THE COMMISSIONER FOR WORKMEN'S COMPENSATION, ERNAKULAM IN W.C.C.NO.28 OF 2003). .................... APPELLANT(S): 2ND OPPOSITE PARTY: -------------------------------------------------------- THE BRANCH MANAGER, ORIENTAL INSURANCE CO. LTD., KOTHAMANGALAM, REPRESENTED BY THE CHIEF REGIONAL MANAGER, REGIONAL OFFICE, NORTH RAILWAY STATION ROAD, KOCHI 682 018. BY ADV. SRI.M.JACOB MURICKAN RESPONDENT(S): APPLICANT AND 1ST OPPOSITE PARTY: ------------------------------------------------------------------------------------- 1. BINU ELDHOSE, OOTHALAKKOTE HOUSE, KEERAMPARA P.O., KOTHAMANGALAM. 2. M.P.PAULOSEKUTTY, DIRECTOR, HYRANGE WOOD TREATS (P) LTD., KEERAMPARA P.O. KOTHAMANGALAM. ADV. SRI.C.DILIP FOR R1 SRI.VINOD RAVINDRANATH FOR R1 DR.GEORGE ABRAHAM FOR R2 THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 09/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M. JOSEPH & M. L. JOSEPH FRANCIS, JJ. ----------------------------------------- M.F.A.(W.C.C).NO.65 OF 2008 G ------------------------------------------ Dated this the 9th August, 2011 JUDGMENT K.M. Joseph, J. Appellant is the second opposite party in a proceeding before the Commissioner for Workmen's Compensation, Ernakulam filed by the first respondent herein seeking compensation of Rs.2,60,000/= for personal injuries sustained by her. After framing various issues and finding that the applicant was an employee, and that she was drawing Rs.2,250/=monthly and the injury was an employment injury, compensation was awarded in a sum of Rs.2,09,195/=. The appellant was made liable to pay the sum. The amount was ordered to be paid by the appellant with simple interest at the rate of twelve per cent from 19.7.2001 till the date of deposit. 2. Learned counsel for the appellant would contend that MFA(WCC).NO.65 OF 08 G 2 actually this is not a motor vehicles policy and it is only a policy under the Workmen's Compensation Act and what is more important is that the policy contains a stipulation that the appellant will not be liable to pay interest or penalty and in this regard, reliance was placed on the decision of the Apex Court in New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya & Anr. (2006 AIR SCW 2352). In fact, we notice that in the impugned order, the Commissioner has stated as follows: “The second opposite party contended that there is a specific endorsement in the policy to the effect that the policy shall not extend to indemnify the insured in respect of any interest and or any penalty imposed on him. In this case the second opposite party deliberately rejected the claim submitted by the applicant on the ground that the compensation demanded is exorbitant. Considering all these aspects, the second opposite party is liable to pay interest also.” 3. Therefore, the Commissioner was aware of the fact that MFA(WCC).NO.65 OF 08 G 3 under the contract, there was no liability to pay interest. In such circumstances, we would think that the reasoning given may not be justifiable. Accordingly, we modify the impugned order and direct that interest at the rate of twelve per cent on Rs.2,09,195/= shall be payable by the first opposite party and the direction to pay interest against the appellant will stand set aside. The amount deposited by the appellant representing the interest portion as aforesaid is permitted to be withdrawn by the appellant. The Appeal is allowed in part. Sd/= K.M. JOSEPH, JUDGE Sd/= M.L. JOSEPH FRANCIS, JUDGE kbk. //True Copy// PS to Judge MFA(WCC).NO.65 OF 08 G 4