1 IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD FIRST APPEAL NO. 3717 OF 2008 Oriental Insurance Company, Through it’s Branch Manager, Opp.ST Stand, Latur. - APPELLANT VERSUS 1) Ashok s/o Dattatraya Deolekar and others. - RESPONDENTS ***** Mr.AA Joshi, Advocate for Appellant; Mr.LB Sayyed, Adv. h/for SS Kazi, Advocate for Respondent No.1; Mr.VR Mundada, Advocate for Respondent No.9 ----- CORAM : K.U.CHANDIWAL, J. DATE : 10th July, 2009. PER COURT : 1) Heard learned Counsel extensively. 2) The interest liability on death of an employee under Workmen's Compensation Act, is subject of controversy. 3) The interest being not exorbitant, the counsel for the appellant was asked to ensure if settlement is possible. Sufficient time was consumer ultimately to yield result of no 2 settlement. The appeal is finally heard at admission stage, as indicated on 23rd October, 2008. 4) The factual details, in the matter about the death of Kundan in an accident, being employee of Ashok Garage, are not in controversy. The insurance company/appellant accepted insurance and consequently accepted to pay Rs. Rs.2,16,910/-. 5) The substantial question of law is – Whether the insurance company is liable to pay the interest of 12% from the date of accident dated 6.11.1997 till realization of the amount to the claimant?. 6) The correspondence between Ashok Garage and Oriental Insurance Company was tendered before the learned Judge. The details of the accident including the requisite papers were sent by the original respondent no.3 on 23.11.1997 and again details were furnished on 10.2.1998. As demanded by Oriental Insurance Company, policy details were given on 31.10.1998. Since the 3 insurance company/appellant assured Ashok Deolekar, it will look into the claim and remittance of the amount, matter was not properly attended by said Ashok Deolekar. It is pertinent, since he realized from the order that the responsibility of making payment of interest was saddled to him, he filed review application being 1/2001, which was served upon the Oriental Insurance company, the appellant herein. However, for the reasons best known, the appellant did not participate, and consequently, based on the correspondence, slackness of insurance company to be obvious, directed payment of interest by the appellant/insurance company. 7) The policy under which the liability of insurance company comes into acceleration, has an inbuilt indication to make the payment, either to the claimants or to the employer. Since the insurance company cannot claim ignorance of passing of the order dated 19.7.2000, it was equally incumbent upon the insurance company to have paid the amount of Rs.2,16,910/- in time, 4 which it failed. The term `liability’ envisage all consequential payments including interest but excluding penalty. 8) It was expected of the insurance company/appellant, when it got knowledge of the accident with the details immediately after the accident with the formalities completed, to have settled the same even as per its own calculation, which is also not done. The apathetic approach is beyond comprehension. In the facts of the case, the insurance company cannot be allowed to plead that it is not liable to make the payment of interest payable by insured employer. The substantial question of law is answered against the appellant. Appeal dismissed. No costs. CA No. 4524/2002 stands dismissed. 9) Heard Mr.Joshi. The earlier order of stay to continue for a period of four weeks. ( K.U.CHANDIWAL ) JUDGE bdv/fa3717.08