The main legal point established is that the insurer is liable to pay the interest awarded under Section 4a (3) of the Workmen's Compensation Act as per the provisions of Section 149 (1) of the Motor Vehicles Act, 1988.

S. VENKATARAMAN, J.

( 1 ) THE short point that arises in these appeals, filed by the insurer, is whether the insurer who has issued a policy under the Motor Vehicles Act can be made liable to pay the interest awarded by the Commissioner for workmens compensation under Section 4a (3) of the Workmens Compensation Act (hereinafter referred to as 'the Act' ).

( 2 ) IT is contended on behalf of the insurance, who are the appellants in these appeals, that under Section 147 (1) of the Motor Vehicles Act, 1988, which is similar to Section 95 (1) of M. V. Act, 1939, in respect of employees of insured travelling in the vehicle they are required to cover only the liability to pay compensation payable under the Act, that under Section 4a (3) of the Act apart from the compensation payable , the Commissioner can award interest if the employer, commits default in paying the compensation due under the Act within one month from the date it fell due; that the award of interest is by way of penalty, that this interest is payable only by the employer and that as it does not form part of the compensation there is no statutory liability on the part of the insurer to pay such interest. It is pointed out that the compensation has to be paid within one month from the date of the accident and it is only if it is not paid within that period the interest can be levied, that the insurer may not know about the accident at all and as such the insurer cannot be made liable for interest. The learned counsel for the appellants have sought sustenance for further arguments from the following decisions:1. Oriental Insurance Co. Ltd. v. Hasmat Khatoon, 1989 ACJ 862 Delhi High Court; 2. Oriental Fire and General Insurance Co. Ltd. v. Matias Burla, 1986 ACJ 732 Orissa High Court;

( 3 ) ORIENTAL Insurance Co. I. td. v. Jevaramma, 1988 ACJ 671 Karnataka High Court;4 Shanthamma v. Kamalamma, ILR 1992 Kar 1258. 3 It is not disputed that Section 147 (1) of M. V. Act 198r (Section 95 of the 1939 Act) makes it obligatory for the insurer to cover the liability under the Workmens Compensation Act in respect of death of or bodily injury to an employee arising out and in the course of his employment under the insured. The liability of the insurer under this provision is no doubt with regard to the compensation awardable under the provisions of the Act.

( 4 ) SECTION 4 of the Act prescribes the amount of compensation payable in the case of death or bodily injury to an employee arising out and in the course of his employment. Section 4a (1) stipulates that compensation under Section 4 shall be paid as soon as it falls due. In case the employer disputes the liability for compensation to the extent claimed by the employee, Section 4a (2) requires him to make provisional payment of the amount admitted by him. Section 4a (3) contains a provision for awarding interest and penalty and it reads as hereunder:"4a (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner may direct that, in addition to the amount of the arrears, simple interest at the rate of six per cent per annum on the amount due together with, if in the opinion of the Commissioner there is no justification for the delay, a further sum not exceeding fifty per cent of such amount, shall be recovered from the employer by way of penalty. "the above provision shows that the Commissioner, after holding that the employer is liable to pay the compensation, can award interest, if the employer, has not deposited the compensation within the stipulated time and that he can also award a further sum not exceeding 50% of the compensation if there was no justification for the employer delaying the payment, as a penalty. It is worthwhile to note that even if the employer had justification for not paying the compensation within the prescribed time, the Commissioner has power to award interest once he finds that the compensation has not been paid in the

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