Rolling-Mill Worker's Widow Keeps 12% Interest On ₹15.12-Lakh Death Compensation As Chhattisgarh HC Rejects Insurer's Unproved Policy Exclusion Plea

The Commissioner under the Employees’ Compensation Act, 1923, awarded Smt. Sunita ₹15,12,450 with interest at 12% per annum for her husband’s death in an accident arising out of and during the course of his employment.

The insurer appealed under Section 30, challenging only the award of interest. It argued that the insurance policy excluded liability for interest, while not disputing the compensation amount or its liability to pay compensation.

The Commissioner had found that the insurer adduced no documentary or oral evidence to support its pleaded defence.

Section 30 of the Employees’ Compensation Act, 1923, permits an appeal to the High Court from specified orders, including an order awarding interest or penalty under Section 4A; however, an appeal is not maintainable unless it involves a substantial question of law.

A party relying on a pleaded defence must substantiate it with evidence; pleadings alone do not amount to proof.

The insurer’s sole contention was that the policy excluded liability for interest.

The Commissioner had found that the insurer produced no documentary or oral evidence to establish the alleged exclusion, and the High Court considered the insurer’s failure to prove its defence material.

In those circumstances, the Court found no substantial question of law warranting admission of the appeal and no illegality or irregularity in the award.

The Commissioner’s award, including interest at 12% per annum, therefore remained undisturbed; no costs were ordered.