HARI NATH TILHARI
UNITED INDIA INSURANCE CO. LTD. – Appellant
Versus
ALLABAX NAHNA SAB – Respondent
( 1 ) THIS appeal arises from the judgment and award dated December 26, 1988 delivered by the commissioner for Workmen's Compensation, Belgaum District, Belgaum in WCA. 23/1987, awarding the claimant a total sum of Rs. 83,516. 25 paise as compensation under the provisions of the Workmen's Compensation Act together with interest at the rate of 6% p. a. from the date of accident upto the date of payment and providing for penalty to the tune of 25% over and above the amount of compensation awarded.
( 2 ) ON behalf of the Insurance Company, the principal contention that has been raised which had been seriously pressed before me is that the Tribunal has illegally directed the amount of interest at the rate of 6% p. a. on the amount of compensation as well as penalty assessed at the rate of 25% over the total amount of compensation to be payable by the Insurance Company. Learned counsel for the appellant contended that in view of the provisions of Section 95 of the Motor vehicles Act, particularly proviso to Sub-section (1), the liability of Insurance Company to indemnify or to pay the compensation may be said to be there but only to the extent the compensation is
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