IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE M.L.JOSEPH FRANCIS THURSDAY, THE 18TH AUGUST 2011 / 27TH SRAVANA 1933 MFA.No. 55 of 2007(A) --------------------- WCC.36/2001 of Commissioner for Workmen's Compensation KOLLAM .................... APPELLANT(S): -------------- ALPHONSE JOSEPH,MANAGING PARTNER, CAPITHAN EXPORTING COMPANY LTD,SAKTHIKULANGARA, KOLLAM. BY ADV. SRI.K.JAJU BABU SMT.M.U.VIJAYALAKSHMI SMT.DHANYA CHANDRAN RESPONDENT(S): --------------- 1. D.RISHI KUMAR,S/O.DAMODARAN,RAJI BHAVAN, CHAVARA P.O. 2. THE DIVISIONAL MANAGER,UNITED INDIA INSURANCE COMPANY LTD,S.K.P BUILDINGS BEACH ROAD, KOLLAM. ADV. SRI.V.E.ABDUL GAFOOR FOR R.1 SRI.A.MOHAMMED SAVAD FOR R.1 SRI.P.JAYASANKAR FOR R2 THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 18/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH & M.L.JOSEPH FRANCIS, JJ. ----------------------------------------------- M.F.A. No.55 of 2007 ----------------------------------------------- Dated 18th August, 2011. J U D G M E N T Joseph, J. This appeal is filed against the order passed by the Commissioner in a proceeding under Section 22 of the Workmen's Compensation Act, directing the appellant to pay 12% interest from the date of the accident, on a sum of Rs.2,14,188/-. The second opposite party, who is the second respondent herein was directed to pay Rs.2,14,188/-, which is the amount of compensation calculated by the Commissioner. 2. The complaint of the appellant is that there is no justification for the Commissioner to order interest to be paid by the appellant. He would contend that this is not a case where the contract of insurance excluded any liability on the part of the insurer to pay interest and in such circumstances, there is no basis to order payment of interest as against the appellant. 3. We would think that the principle enunciated by the Apex Court that if the contract of insurance contemplates exclusion of liability by the insurer to pay interest, the insurer would not be liable to pay interest is not applicable as no such MFA 55/2007 2 exclusion is available. In such circumstances, appeal is allowed and the order is modified and we direct that the appellant will not be liable to pay interest as ordered and the second respondent Insurance Company is directed to pay interest as ordered by the Commissioner otherwise. Sd/- K.M.JOSEPH, JUDGE. Sd/- M.L.JOSEPH FRANCIS, JUDGE. tgs (True copy) P.S. to Judge.