IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 28TH JANUARY 2009 / 8TH MAGHA 1930 MFA.No. 17 of 2009() -------------------- WCC.33/2005 of W.C.C.,ERNAKULAM .................... APPELLANT(S): RESPONDENT NO.2: ------------------------------ THE NEW INDIA ASSURANCE CO. LTD., DIVISIONAL OFFICE, KOTTAKKAL ARYAVAIDYASALA BUILDING, M.G.ROAD, ERNAKULAM, REPRESENTED BY ITS MANAGER. BY ADV. SRI.KKM.SHERIF SRI.A.A.ZIYAD RAHMAN RESPONDENT(S): PETITIONERS 1 TO 3 AND RESPONDENT NO.1: ------------------------------------------------------ 1. SMT.MARY, W/O.JOY, KUNNEL HOUSE, MUNDANVELI, MANASSERRY, KOCHI. 2. BRIJITHA, D/O.JOY, KUNNEL HOUSE, MUNDANVELI, MANASSERY, KOCHI. 3. ANTONY, S/O.JOY, KUNNEL HOUSE, MUNDANVELI, MANASSERRY, KOCHI. 4. M/S.SILPI CONSTRUCTIONS CONTRACTORS, 40/7331 "V" 2ND FLOOR, PENTA SQUARE, M.G.ROAD, ERNAKULAM. THIS MISC. FIRST APPEAL HAVING COME UP FOR ADMISSION ALONG WITH MFA NOS.9,15&16/2009 ON 28/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... M.F.A.(WCC) Nos.17,15,16 & 9 of 2009 .................................................................... Dated this the 28th day of January, 2009. JUDGMENT Ramachandran Nair, J. Heard counsel for the appellant which is the Insurance Company against which award is passed by the Workmen's Compensation Commissioner awarding compensation with interest for the death of four employees of the 4th respondent. Question raised is only on liability of the Insurance Company to pay interest on the compensation amount awarded by the Workmen's Compensation Commissioner. Counsel for the appellant relied on decision of the Supreme Court in NEW INDIA ASSURANCE CO. LTD. V. HARSHADBHAI AMRUTBHAI MODHIYA (2006(2) KLT 667) wherein Supreme Court has held that interest is a matter which should be considered with reference to the terms of the policy. According to counsel, the terms of policy in this case are same as the terms of policy covered by judgment of the Supreme Court. In the circumstances, we dispose of the appeals with the following directions to the Workmen's Compensation 2 Commissioner. (1) The compensation amount awarded and deposited by the appellant will be released to the beneficiaries except interest at the earliest and in terms of the norms followed. (2) The Workmen's Compensation Commissioner on receipt of copy of this judgment will issue notice to the insured and to the appellant and hear them about the interest liability and if interest is to be borne by the insured, the Commissioner will order recovery from the insured and exonerate the appellant. On the other hand if appellant is found liable, the interest amount deposited also will be released to the beneficiaries without any delay. If after hearing the insured and the appellant, the Workmen's Compensation Commissioner is of the view that interest is not payable by any of the parties, then before passing final orders in the matter, the claimants also should be heard in the matter. The Workmen's Compensation Commissioner is directed to decide the above issue within a period of three months from date of 3 receipt of copy of this judgment which will be produced by the appellant. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms