The main legal point established is that the insurance company is not statutorily liable to pay interest under section 4-A (3) of the Workmen's Compensation Act, and its liability is limited to indemnify the employer against the amount of compensation ordered to be paid under the Act.

( 1 ) THIS appeal is filed by the claimant under section 30 of the Workmen's Compensation Act, 1923 (for short 'the Act') challenging the award dated 29. 3. 1999 passed by the Commissioner for workmen's Compensation, Circle 2, Gwalior in case No. 33 of 1992 W. C. A. (Fatal ).

( 2 ) BRIEF facts of the case are that one ashwani Kumar who was working as a labourer with the respondent No. 1 and working in truck No. MKH 7869 died on 16. 4. 1991 in an accident occurred during the course of employment. The appellant-claimant is mother of deceased. She filed an application for compensation before the commissioner, Workmen's Compensation. The Commissioner by the impugned award has awarded an amount of Rs. 90,640 as compensation plus penalty of 50 per cent of the amount for delayed payment under section 4-A (3) of the Act and interest at the rate of 6 per cent per annum. The learned Commissioner directed the insurance company, respondent No. 2 herein, to pay the amount of compensation only and in respect of amount of penalty and interest, learned Commissioner directed the owner of the vehicle, respondent No. 1, to pay the amount of penalty amounting to Rs. 45,000 and interest on Rs. 90,640 at the rate of 6 per cent per annum from the date of accident till its realisation and exonerated the insurance company from paying the said amount of penalty and interest. Appellant is partly aggrieved by the impugned award, by which insurance company, respondent no. 2, was exonerated from payment of penalty and interest.

( 3 ) LEARNED counsel for the appellant contended that under section 4-A of the act the amount has to be deposited within 30 days from the date of accident and in case amount has not been deposited then under section 4-A (3) of the Act the respondents are liable to pay penalty of 50 per cent of the amount along with interest at the rate of 6 per cent per annum. Section 4-A (3) reads as under:

"section 4-A (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. "

Sub-section (3) of section 4-A provides for payment of interest if the compensation is not paid within one month from the date it fell due, if the Commissioner does not consider the delay to be justified.

( 4 ) APPEAL was admitted on 1. 11. 1999 without framing any substantial question of law as required under first proviso to sub-section (1) of section 30 of the Act. After hearing the preliminary arguments the following substantial question of law is framed:

"whether insurance company is statutorily liable to pay the interest under section 4-A (3) of the Workmen's Compensation Act, 1923?"

( 5 ) THE learned counsel for the appellant submits that there is no condition in the policy, Exh. D1, regarding non-payment of interest and, therefore, insurance company is also liable to pay the interest on delayed payment of compensation under section 4-A (3) of the Act and learned commissioner committed error in exonerating insurance company from payment of interest.

( 6 ) ON the other hand, Mr. B. N. Malhotra, learned counsel for the insurance company submits that there is no condition regarding payment of interest in Exh. Dl and, therefore, there is no statutory liability under the terms and conditions of the contract to pay the interest under sub-section (3) of section 4-A of the Act. Learned counsel for the appellant has relied upon the decision of the Apex Court in the case of Ved Prakash Garg v. Premi Devi, 1998 acj 1 (SC), wherein the Apex Court has held that the insurance company is not liable to pay the amount of penalty for late payment of the amo