IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA FAO No. 355 of 2007 Date of decision: 23.11.2012 National Insurance Company Ltd., The Mall, Solan, H.P. through its Divisional Manager, Himland Hotel, Circular Road, Shimla – 171 001. … Appellant. Vs. 1. Pano Devi Wd/o of Sh. Rajander Singh 2. Nanaki Devi Wd/o Sh. Pyar Singh, Both R/o Village & P.O. Amarpur, Tehsil Ghumarwin, Distt. Bilaspur, H.P. 3. Praveen Kumar Sharma S/o Sh. Balak Ram R/o Village & P.O. Bhager, Tehsil Ghumarwin, Distt. Bilaspur. …Respondents. Appeal Under Section 30 of the Workman Compensation Act, 1928. Coram The Hon’ble Mr. Justice Deepak Gupta, Judge. Whether approved for reporting?1 No. For the appellant: Mr. Deepak Bhasin, Advocate. For the Respondents No. 1 and 2: Ms. Tim Saran, Advocate. Deepak Gupta, J.(Oral) 1. This appeal was admitted on the following substantial question of law:- “Whether the Ld. Commissioner was justified in imposing the interest and penalty on awarded amount upon the Insurance Company in the absence of any contract or statutory provision empowering him to do so, that too from the date of accident?” 1 Whether the reporters of the local papers may be allowed to see the Judgment? Yes. 2 2. Though this case arises out of a motor vehicle accident but in fact the case is one in which the claim has been filed by the heirs of the driver of the vehicle under the provisions of the Workmen’s Compensation Act. 3. As far as the penalty is concerned, no order of penalty has been passed. It is only ordered that in case of failure to deposit the amount within one month from the date of order then proceedings under Section 4(A) may be initiated against the defaulter. 4. As far as interest is concerned, this Court in number of cases had laid down the law that in case the Insurance Company wants to escape the liability to pay interest it must prove a specific condition in the policy excluding payment of interest by the Insurance Company. No such condition has been proved on record and therefore, the Commissioner had rightly held that the Insurance Company is liable to pay interest. 5. It is, however, made clear that the interest shall be payable not from 12.7.2006 when the accident took place but from 13.8.2006 i.e. one month after the accident. 6. In view of the above discussion the appeal is disposed of and the amount of compensation is apportioned as follows:- 3 1. Smt. Pano Devi (widow) Rs.2,40,715/-. 2. Smt. Nanaki Devi (mother) Rs.1,00,000/- 7. Out of the amount held payable to the widow (Pano Devi), a sum of Rs.50,000/- only shall be released in her favour by remitting it to her bank account. The balance amount alongwith interest accrued upto date shall be re-invested in a fixed deposit in her name for a period of three years at the first instance. The amount shall be released to her only on her furnishing a photocopy of her pass book which should clearly show that she is the sole person operating the account. Out of the amount so kept in fixed deposits, the interest accruing henceforth on the fixed deposit of the widow (Pano Devi) shall be released in her favour on quarterly basis, which shall be used by her for her own up keep. 8. As far as the mother is concerned, she may file separate application for release of money. Till she files the application the amount shall remain in a fixed deposit. 9. The appeal is disposed of in the aforesaid terms. No costs. 23rd November, 2012 ( Deepak Gupta ) ™ Judge