Allowed

The Oriental Insurance Company Limited v. Bhakaran

Kerala HC5 Oct 2020MFA (ECC)/97/2012

Case brief

AI extract

What is this about?

Appeal filed by Oriental Insurance against an award directing payment of interest from the accident date. The court held that the commissioner erred in ignoring the policy clause excluding interest liability and modified the order to remove interest from the accident date.

What did the court decide?

Setting aside the portion of the impugned order directing payment of interest from the date of accident; interest portion in deposit allowed to be withdrawn by the appellant.

The Oriental Insurance Company Limited Vs Bhakaran — Banking and Recovery | Kerala HC (2020)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR

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MONDAY, THE 05TH DAY OF OCTOBER 2020 / 13TH ASWINA, 1942

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MFA.No.97 OF 2012

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AGAINST THE ORDER/JUDGMENT IN WCC 4/2007 OF W.C.C.,KOLLAM

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APPELLANT/2ND OPPOSITE PARTY:

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THE ORIENTAL INSURANCE COMPANY LIMITED., REPRESENTED BY ITS DULY AUTHORISED OFFICER, METRO PLAZA, NORTH RAILWAY STATION ROAD, ERNAKULAM

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BY ADV. SRI.VPK.PANICKER

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RESPONDENTS/1ST OPPOSITE PARTY AND APPLICANT:

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1 SRI.BHASKARAN, SNEHALAYAM, PUTHIYAVILA P.O, KAYAMKULAM 690531

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2 SRI.PONNAN, S/O. DAMODARAN, PUTHENCHIRA VADAKKATHIL, ERICKAVU P.O, ALAPPUZHA DISTRICT 690516

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THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 05.10.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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MFA.No.97 OF 2012 2

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JUDGMENT

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This appeal is filed by the second opposite

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party in W.C.C.No.4/2007 before the Commissioner for Workmen's Compensation and Deputy Labour Commissioner, Kollam.

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An order was passed on 28.1.2011 directing the appellant, Insurance Company to make payment of compensation of Rs.75,141/- with liability to pay simple interest at the rate of 12% from the date of accident.

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The learned counsel for the appellant while admitting the liability for payment of the principal amount of compensation awarded by the learned Commissioner has confined the challenge to the interest portion. It is contended that the

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insurance policy in question being workmen's compensation policy, the Commissioner was not justified in awarding interest from the date of

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MFA.No.97 OF 2012 3

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accident in as much as the policy contained a clause excluding the liability of payment of interest.

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The second respondent, who is the applicant before the Commissioner, did not appear though served and contest this appeal.

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The learned counsel for the appellant handed over the copy of the policy, which shows that it was issued under the provisions of the Workmen's Compensation Act. The Workmen's Compensation Policy ordinarily contains a general clause which excludes liability of the insurance from payment of interest. This material aspect was not taken notice of by the learned Commissioner while passing the impugned order which directed payment of interest from the date of accident.

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After hearing the learned counsel for the appellant, I am satisfied that the impugned order requires to be modified to the extend it directed

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MFA.No.97 OF 2012 4

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the payment of interest from the date of accident.

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In the result, appeal is allowed setting aside that part of the impugned order directing payment of interest to the second respondent from the date of accident. The impugned order will remain in tact in all other respects. It is made clear that the interest portion of the amount in deposit shall be allowed to be withdrawn by the appellant.

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Sd/-

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T.V.ANILKUMAR, JUDGE

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The Oriental Insurance Company Limited v. Bhakaran

Case brief

What is this about?

What did the court decide?

The Oriental Insurance Company Limited v. Bhakaran

Case brief

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What did the court decide?

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