IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMAN & THE HONOURABLE MR. JUSTICE V.K.MOHANAN MONDAY, THE 4TH FEBRUARY 2008 / 15TH MAGHA 1929 MFA.No. 135 of 2004() --------------------- WCC.116/1998 WORKMEN'S COMPENSATION COMMISSIONER, ERNAKULAM .................... APPELLANT: 3RD OPP.PARTY ------------------------ NATIONAL INSURANCE COMPANY LTD., CHENNAI, REPRESENTED BY THE ASST.DIVSIONAL MANAGER, DIVISIONAL OFFICE, KOCHI. BY ADV. SRI.RAJAN P.KALIYATH RESPONDENTS: APPLICANT AND OPP.PARTIES 1 AND 2 ---------------------------------------------- 1. SHANI PRAKASH S/O. PRAKASH VADAKEDATH HOUSE, MUNDAMVELI POST, MULAMKUDI. 2. THE CHAIRMAN, COCHIN PORT TRUST LTD., WELLINGTON ISLAND, KOCHI-682 009. 3. M/S. BRARDSELL LIMITED, XI/6484 T.D.ROAD P.B.NO.3233, KOCHI. R1 BY ADV. SRI.V.V.SURESH R2 BY ADV. SRI.A.M.SHAFFIQUE SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR R3 BY ADV. SRI.SREEPRAKASH K.NAIR THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 04/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON I.A.NO.2524/2004 IN M.F.A.(WCC)NO.135/2004 ------- Dismissed Sd/- P.R.RAMAN, JUDGE. 4/2/2008 Sd/- V.K.MOHANAN, JUDGE. P.R.RAMAN & V.K.MOHANAN, JJ. ------------------------------- M.F.A.(WCC)NO.135 OF 2004 -------------------------------- Dated this the 4th day of February, 2008 JUDGMENT Raman, J. This is an appeal against the order passed by the Commissioner for Workmen's Compensation in W.C.C.No.166 of 1998. Appellant is the Insurance Company. The claim was preferred by the workman for compensation for the injury sustained by him during the course of employment. The authority below awarded an amount of Rs.1,59,386/- with interest at 12% from 14/2/1997 to 9/2/2003 and directed that the amount be deposited within 30 days from the date of receipt of the order. Since the 3rd respondent has admitted that there is a valid policy of insurance, the amount with interest was directed to be paid by them. The only dispute is regarding the direction to pay interest by the Insurance Company. They placed reliance on the decision of the Apex Court in New India Assurance Co.Ltd. v. Harshadbhai Amrutbhai Modhya and another (III (2006) SLT 665) and contended that they cannot be made liable for payment of the interest. In the said decision it has been held that there is no statutory liability for the Insurance Company. Hence, in the absence of any contention that the policy in question covers the liability for interest also, the Insurance Company -2- MFA.(WCC)No.135/2004 cannot be made liable. In the circumstances, we allow this appeal and the direction as against the appellant to deposit the interest is set aside. The Insurance Company has already deposited the principal amount. In modification of the order passed, there will be a direction that the interest portion on the principal amount shall be paid by the employer. The Workmen's Compensation Commissioner shall issue certificate of recovery in favour of the claimant, in case interest is not paid by the employer within thirty days from today. P.R.RAMAN, Judge. V.K.MOHANAN, Judge. kcv.