The insurance company is not liable for interest payments under the Workmen's Compensation Act; liability rests with the employer to pay compensation and associated interest.

JUDGMENT :

Hemant M. Prachchhak, J.

1. Present appeal is filed by the appellant - insurance company under Section 30 of the Workmen Compensation Act, 1923 (hereinafter be referred to as “the Act”) challenging the impugned judgment and order dated 06.01.2012 passed by the learned Workmen Compensation Commissioner, Labour Court, Himmatnagar in “Workmen Compensation (Non-Fatal) Case No. 3 of 2005 whereby the learned Commissioner has allowed the claim petition filed by the claimant and awarded the compensation of Rs.2,71,656/- along with the penalty and interest.

2. Being aggrieved and dissatisfied with the impugned judgment and order of the learned Commissioner, the present first appeal is filed by the appellant – insurance company on the grounds that learned Commissioner has committed an error in fastening the interest and penalty upon the insurance company.

3. Heard Mr.K. V. Gadhia, learned counsel appearing for the appellant – insurance company and Mr.Harshad Patel, learned counsel appearing for respondents – claimants at length.

4. Mr.Gadhia, learned counsel appearing for the appellant has submitted the same facts which are narrated in the memo of appeal and has submitted that as per the terms of the insurance policy at Ehibit 35, the insurance company is not liable for the payment of interest and penalty and thus the learned Commissioner has committed serious error of law and facts in awarding 12% interest, which was fastened upon the appellant instead of original employer. Mr.Gadhia, learned counsel has referred to and relied upon Sections 4 read with Section 5 of the Act which provides the method of calculating the wages. Section 4 and Section 5 of the Act reads as under:-

“4. Amount of compensation. - (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:-

[Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount of compensation mentioned in clauses (a) and (b).]

Explanation I. - For the purposes of clause (a) and clause (b), “relevant factor, in relation to [an employee] means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the [employee] on his last birthday immediately preceding the date on which the compensation fell due.

Explanation I.-- Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed