JUDGMENT

S.B. Sinha, J.—Leave granted.

2. Whether interest is payable by an insurer while indemnifying the insured the amount of compensation awarded against him under the Workmen’s Compensation Act, 1923 (for short “the Act”) is the question involved in this appeal which arises out of a judgment and order dated 10.05.2005 passed by the High Court of Judicature of Gujarat, Ahmedabad in First Appeal No. 1061 of 2005.

3. Before adverting to the contentions raised by the parties herein, we may notice the contract of insurance. By reason of the said contract, the insurer has made itself liable to reimburse the insured if during the period of insurance any employee in his immediate service sustained personal injury by accident or disease arising out of and in the course of employment by the insured in the business wherefor he would be liable to pay compensation either under:

(i)the law set out in the Schedule or

(ii)at common law

4. However, therein a proviso has been added which reads as under:

“Provided that the insurance granted hereunder is not extended to include:

(i)any interest and/or penalty imposed on the insured on account of his/her failure of comply with the requirements laid down u