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2008 Supreme(SC) 1697

ARIJIT PASAYAT, MUKUNDAKAM SHARMA
Kamla Chaturvedi – Appellant
Versus
National Insurance Co. – Respondent


Advocates:
Cases Referred:
1. New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya 2006(5) SCC 192
2. Ved Prakash Garg v. Premi Devi and others 1997(8) SCC 1
3. P.J. Narayan v. Union of India and others 2006 (5) SCC 200
4. National Insurance co. Ltd. v. Mubasir Ahmed & Anr. 2007(2) SCC 349
5. Maghar Singh v. Jashwant Singh (1998) 9 SCC 134

Judgment:-

Dr. Arijit Pasayat, J.

1. Leave granted.

2. Challenge in this appeal is to the judgment of a learned Single Judge of the Madhya Pradesh High Court, Jabalpur Bench, allowing the Misc. Appeal filed by the respondent No.1 (hereinafter referred to as the `Insurance Company). The controversy lies within a very narrow compass.

3. Challenge in the Misc. Appeal before the High Court was to the Award made by the Commissioner for Workmens Compensation, Labour Court No.1 Gwalior (in short the `Commissioner). A sum of Rs.2,21,370/- along with interest at the rate of 12% per annum was awarded. The liability to make the payment was fixed on the Insurance company. In appeal the only ground raised was that in a claim arising under the Workmens Compensation Act, 1923 (in short the `Act) interest is not payable by the Insurance company as there was no contract by the insurer with the insured with regard to the payment of interest. High Court accepted the stand placing reliance on a judgment of this Court in New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya [2006 (5) SCC192]. It was held that the direction for payment of interest by the insurance company was not sustainable and













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