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2020 Supreme(Online)(KER) 30246
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR WEDNESDAY, THE 30TH DAY OF SEPTEMBER 2020 / 8TH ASWINA, 1942 MFA.No.85 OF 2011 AGAINST THE ORDER IN WCC 157/1997 DATED 10-12-2010 OF COMMISSIONER FOR WORKMEN'S COMPENSATION & DEPUTY LABOUR COMMISSIONER, KANNUR APPELLANT/III OPPOSITE PARTY:
THE NEW INDIA ASSURANCE CO.LTD.
KALPETTA NORTH, NOW REP.BY ITS MANAGER, REGIONAL OFFICE, M.G.ROAD, KOCHI-11.
BY ADVS.
SRI.MATHEWS JACOB (SR.)
SRI.P.JACOB MATHEW RESPONDENTS/APPLICANTS & OPPOSITE PARTIES I,II AND IV:
1 THANKA, W/O.LATE THANKAPPAN, ESTATE LINE ROOM,CHEMBRA ESTATE,ERUMACOLLI, MEPADI P O-673577.
2 INDIRA, D/O.LATE THANKAPPAN, ESTATE LINE ROOM,CHEMBRA ESTATE,ERUMACOLLI, MEPADI P O-673577.
3 OMANA, D/O.LATE THANKAPPAN, ESTATE LINE ROOM,CHEMBRA ESTATE,ERUMACOLLI, MEPADI P O-673577.
4 THE AGENTS TO THE COURT RECEIVER CHEMBRA ESTATE,MEPADI P O-673577.
* 5 THE PREMIER PLANTATIONS, MEPADI P O-673577.
* (R5 IS REMOVED FROM THE PARTY ARRAY AS PER ORDER DATED 16.9.2015 IN IA 3207/15 IN MFA
85/11)
6 THE MANAGER, PREMIER PLANTATIONS MEPADI P O-673577.
R1-3 BY ADV. SMT.CELINE JOSEPH R1-3 BY ADV. SRI.GEORGE POTHAN POOTHICOTE R1-3 BY ADV. SMT.K.INDU POURNAMI R1-3 BY ADV. SRI.M.RISHIKESH SHENOY R1-3 BY ADV. SRI.M.SHAHEED AHMAD R4 BY ADV. SRI.ANIL XAVIER THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON
30.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
Dated this the 30th day of September, 2020
['SRI MATHEWS JACOB SR', '', 'SRI P JACOB MATHEW', 'SMT CELINE JOSEPH', 'SRI GEORGE POTHAN POOTHICOTESMT K INDU POURNAMISRI M RISHIKESH SHENOYSRI M SHAHEED AHMAD', 'SRI ANIL XAVIER']
J U D G M E N T
The third opposite party, the New Assurance Company Ltd. in WCC No.157/1997 before the Commissioner for Workmen's Compensation & Deputy Labour Commissioner, Kannur, is the appellant.
2. The sole question that arises for consideration in this appeal filed challenging the impugned order dated 10.12.2010 passed by the learned Commissioner is whether the appellant was liable to pay interest from the date of accident as ordered against it.
3. The order was passed in favour of the applicants who are the legal heirs of the deceased Thankappan. Admittedly, there was insurance policy covering the accident in question and the appellant was therefore liable to indemnify the loss sustained by the employer/the sixth respondent herein.
4. As per the impugned order, the appellant was ordered to pay a sum of Rs.57,355/- with interest at the rate of 12% from the date of accident till the date of deposit of the amount. The sixth respondent herein was ordered to pay compensation of Rs.60,055/- with interest. The employer has not challenged the order and it has become final also.
5. The contention raised by the learned counsel for the appellant is that the policy did not oblige the appellant to pay interest under the terms of the contract. This is not a disputed fact. It was argued that since the liability to pay interest is not stipulated by statutory provisions, parties are free to agree upon their rights as well as liabilities for payment of interest. Relying on New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya [2006(2) KLT 667(SC)] and New India Assurance Co. Ltd. v. Lilla Francis (2014(1) KLT 731), it was submitted that the appellant is not liable to pay interest and since there is exclusion of liability for payment of interest in the terms of the policy itself, the impugned order directing payment of interest is illegal. The legal position argued was not disputed by the respondents also. I therefore hold that the liability of the appellant shall stand limited to payment of Rs.57,355/-. The direction to pay interest is therefore vacated. The interest payable on the aforesaid amount could, however, be recovered from the employer/sixth respondent.
In the result, this appeal is allowed modifying the impugned order to the limited extent it directed the appellant to pay interest on the principal amount of Rs.57,355/-. The order will remain intact in other respects. It follows that the applicants in WCC No.157/1997 will recover the interest on Rs.57,355/- from the sixth respondent herein. The amount of interest, in deposit if any, is allowed to be withdrawn by the appellant.
All pending interlocutory applications are closed.
