1 S.B. Civil Misc. Appeal No.2516/2007 S.B. Civil Misc. Appeal No.2520/2007 1. S.B. Civil Misc. Appeal No.2516/2007 National Insurance Co. Ltd. vs. Smt. Mohini Devi & Ors. 2. S.B. Civil Misc. Appeal No.2520/2007 National Insurance Co. Ltd. vs. Smt. Dhapu Devi & Ors. Date : 25.3.2009 HON'BLE MR. PRAKASH TATIA, J. Mr.J Vyas, for the appellant. Mr.M Pitaliya ) for the respondents. Mr.M Patodia ) - - - - - Heard learned counsel for the parties. The short questions involved in these appeals are whether the appellant insurance company was rightly held to pay the interest over the compensation amount awarded by the Workmen's Compensation Commissioner, Bhilwara in award dated 29.8.2007 ? and if the insurance company is held to be liable, then from which day, the appellant is liable ? And lastly whether the increase of interest rate in case of default in payment can be 2 S.B. Civil Misc. Appeal No.2516/2007 S.B. Civil Misc. Appeal No.2520/2007 justified ? Both the learned counsels for the parties submit that the issues have already been answered by the Hon'ble Apex court the first two are answered by the judgment delivered in the case of Kamla Chaturvedi vs. National Insurance Co. & Ors. reported in MACD 2009 (SC) 4, wherein it has been held that the insurance company is liable to pay not only the principal amount of compensation payable by the insured employer but also the interest thereon if ordered by the Commissioner to be paid by the insured employer. The Hon'ble Apex Court held that unless liability to pay the interest is excluded expressly by contract between the insured and insurer, the insurance company is liable to pay interest under Section 4-A(3) of the Workmen's Compensation Act, 1923. In this case, the liability of the insurer has not been excluded expressly and, therefore, the insurance company is liable to pay interest on the compensation. The Hon'ble Apex Court has held that the 3 S.B. Civil Misc. Appeal No.2516/2007 S.B. Civil Misc. Appeal No.2520/2007 liability to pay interest starts from the date of adjudication of the liability and not from the accident. In view of the above, it is held that the insurance company is liable to pay interest over the compensation awarded by the Commissioner but from the date of award i.e. from 29.8.2007. The condition of payment of interest within stipulated time is quashed. The amount which has already been deposited in excess of the above may be refunded to the appellant insurance company. These appeals are disposed of accordingly. (PRAKASH TATIA), J. S.Phophaliya