Back
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK
New India Assurance Company Ltd Through Incharge – Appellant
Versus
Modya Sukaji @ Sureshbhai Maganbhai – Respondent
| Table of Content |
|---|
| 1. insurance company's challenge against the compensation order. (Para 1) |
| 2. arguments regarding liability for interest and penalty. (Para 2 , 4) |
| 3. court's observations on liability and calculations. (Para 3 , 6 , 7) |
| 4. conclusion and order regarding the appeal. (Para 8 , 9) |
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 appe
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.
The assessment of disability under the Workmen Compensation Act must adhere strictly to statutory provisions, limiting discretion in establishing percentage of disability and wage calculations.
The main legal point established in the judgment is that the penalty under Section 4-A(3)(b) of the Workmen's Compensation Act is the liability of the employer and not the insurance company.
The main legal point established in the judgment is that the Insurance Company is primarily liable to pay compensation to the workmen under the Workmen Compensation Act.
An insurer is not liable for interest on compensation awarded under the Employees Compensation Act if the policy expressly excludes such liability.
An insurer's liability excludes interest and penalties if the insurance policy explicitly states such exclusions, as determined under commercial contract principles.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
