Authority: High Court of Himachal Pradesh at Shimla

Order Date: 06 July 2026

Case Overview

  • Parties: Appellant – Oriental Insurance Company Limited; Respondents – Kashmira Devi & others (legal heirs of the deceased), Shri Madan Gopal Mehta (employer), Executive Engineer, HPPWD, District Kullu, and the State.
  • Original award dated 10 May 2012 (Case No. 17 of 2011, District Kullu) partially allowed the workmen‑compensation claim of the heirs of the deceased labourer Surjeet Singh, who died on 03 May 2008 when a boulder fell on him during road‑cutting work.
  • Claimants sought Rs 6,00,000 compensation plus 9% per annum interest; the Commissioner awarded principal compensation of Rs 3,93,246, a 25% penalty of Rs 98,312 on the principal to be paid by the employer, and ordered Oriental Insurance to pay the whole principal amount plus interest at 12% per annum, totalling Rs 5,78,903.
  • Oriental Insurance appealed, arguing that liability for amounts above the insured sum (Rs 2,70,000 for ten employees) and interest should rest with the employer, and that the policy expressly excluded interest.
  • The insurer also relied on a marked “R” document (terms and conditions) which was not produced in evidence; the court found the document not proved and therefore not admissible.

Final Outcome

  • The High Court dismissed the appeal, holding that the insurer is liable to pay the full compensation amount of Rs 5,78,903 with interest at 12% per annum as awarded.
  • The employer, Shri Madan Gopal Mehta, must pay a penalty of Rs 98,312 (25% of the principal) plus simple interest at 9% per annum if delayed.
  • The court rejected the insurer’s new ground that it was not liable for amounts over the insured sum and for interest, stating that such a ground was not raised before the Commissioner and cannot be introduced at the appellate stage.
  • The terms and conditions marked “R” were not proved; consequently, no exemption from interest could be accepted.
  • All pending miscellaneous applications, if any, were also disposed of.

Topics: Workmen Compensation, Insurance Liability