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Judgment
N. Ananda
In this appeal filed by the Insurance Company, the only substantial question of law that arises for consideration is whether the Insurance Company is liable to pay interest and penalty under the Workmen''s Insurance Policy. I have heard the Learned Counsel for parties.
The Policy issued by the Insurance Company does not cover interest and penalty imposed on insurer on account of his failure to comply with requirements under the provisions of the Workmen''s Compensation Act.
In the decisions reported in Oriental Insurance Co. Ltd. Vs. Raju and Others, and United India Insurance Co. Ltd. Vs. Smt. Nagarathna and Others, this Court has held that the Insurance Company cannot be fastened with interest when the terms of Policy exclude such liability. Therefore, I pass the following order:
The appeal is accepted. The compensation determined by the Commissioner for Workmen''s Compensation shall be paid by the Insurance Company. The interest on the compensation shall be paid by the insured (second respondent herein). The amount deposited by the Insurance Company shall be transferred to the Commissioner for Workmen''s Compensation. If the Insurance Company has deposited the amount in excess of compensation, the same shall be returned to the Insurance Company.