- 1 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO. 145 OF 2016 (WC) BETWEEN: K.M. SHANTEGOWDA COFFEE PLANTER & OWNER R/O KEREMAKKI VILLAGE, AVATHI POST HOBALI CHICKMAGALOR-577 101 …APPELLANT (BY SRI. VINOD GOWDA., ADVOCATE) AND: 1. SRI. PALANI S/O KARI RAME GOWDA, AGED ABOUT 26 YEARS, R/O HOSAGANGURU VILLAGE, LINGADAHALLI HOBALI, TARIKERE TALUK, CHICKMAGALORE DISTRICT-577 228. 2. THE BRANCH MANAGER ORIENTAL INSURANCE COMPANY LTD., TAP)CMS COMPLEX, K.M.ROAD, CHIKMAGALORE-577 101. …RESPONDENTS (BY SRI. A M VENKATESH., ADVOCATE FOR R2, V/O DTD: 27.07.2021 NOTICE TO R1 IS D/W) THIS MFA IS FILED U/S 30(1) OF THE EMPLOYEE'S COMPENSATION ACT, AGAINST THE JUDGMENT AND AWARD Digitally signed by PADMASHREE SHEKHAR DESAI Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 DATED10.09.2015 PASSED IN ECA NO.12/2015 ON THE FILE OF THE 2ND ADDITIONAL SENIOR CIVIL JUDGE, CHIKKAMAGALURU, AWARDING THE COMPENSATION OF RS.40,996/- WITH INTEREST AT 12% P.A. FROM THE DATE OF PETITION TILL THE DEPOSIT. THIS APPEAL HAVING BEEN HEARD AND RESERVED ON 23.07.2026 COMING ON FOR PRONOUNCEMENT OF JUDGMENT THIS DAY, P SREE SUDHA J., DELIVERED THE FOLLOWING: CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA CAV JUDGMENT The appeal is filed against the judgment and award dated 10.09.2015 passed by II Additional Senior Civil Judge and JMFC, Chikkamagaluru in E.C.A. No.12 of 2015. 2. The injured claimant met with an accident on 02.01.2009 and filed claim petition claiming compensation. The Tribunal after considering the entire evidence on record, directed respondent No.2 therein to pay Rs.6,747/- to the petitioner and also directed respondent No.1 therein to pay Rs.34,249/- with interest at rate of 12% per annum on - 3 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 Rs.40,996/- after the expiry of 30 days from the date of accident, till the date of payment. 3. Aggrieved with the said order, respondent No.1 before the Tribunal, has preferred this appeal is mainly contending that petitioner was getting Rs.150/- per day as wages. Accident occurred during the course of employment and the employer and employee relationship is admitted. It is contended that the appellant has taken the policy from respondent No.2. Policy was in force as on the date of accident. Therefore, respondent No.2 alone is liable to pay the compensation to the petitioner. It is contended that respondent No.2 denied employer and employer relationship and it liability should be determined in accordance with the terms of the policy. The Tribunal only directed appellant herein to pay more than 50% of the award amount and interest. But according to the policy, respondent No.2 is liable to pay compensation and interest. It is contended that when the appellant approached the insurance company and requested to settle the matter, they failed to deposit the amount. The Tribunal failed to note that interest has to be paid by respondent No.2 as per the citations of the High Courts and - 4 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 Supreme Courts. The Tribunal has not properly appreciated the restriction of the liability of the appellant. Therefore, requested to set aside the order of the Tribunal. 4. Heard the learned counsel for both sides. 5. This Court framed the following substantial question of law: “1. Whether the trial Court is justified in directing this appellant to pay the interest. Even though the Apex Court held in Civil Appeal No.5669/2012, in the cade of Oriental Insurance Vs. Seby Georg & Others. That interest has to pay by insurance company? 2. Whether the Trial Court is justified in more than 50% of the award amount?” 6. Learned counsel for the appellant has relied upon the judgment of the Hon'ble Supreme Court in the case of Oriental insurance company Ltd Vs Siby Geroge and others reported in (2012)12 SCC 540. In the said citation, it was stated that the claimants are entitled for interest at the rate of 12% from one month after the date of accident, but not from the date of order of the commissioner. - 5 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 7. Learned counsel for respondent-insurance company has relied upon the judgment of this Court in M.F.A. No. 5760 of 2016 dated 17.09.2025, in which it was held that Insurance company issued policy as per Workmen’s Compensation Act. As per the terms and conditions of the policy, clause 2(i) reads as follows: “2(i) Any interest and/or penalty imposed on the insured on account of his/her failure to comply with the requirements laid down under the W.C. Act, 1923 and….” 8. Therefore, it is submitted that insurance company is not liable to pay compensation along with interest and employer alone is liable to pay the interest to the petitioner. An insurance company is exonerated from paying the interest on the said compensation and it shall be paid by the employer. 9. Even in this case, the appellant herein is the owner of the vehicle and respondent No.2 is the insurer. Therefore, the Tribunal considering the entire evidence record directed respondent-insurance company to pay Rs.6,747/- to the petitioner and also directed appellant herein to pay Rs.34,249/- with interest at rate of 12% per annum on Rs.40,996/- after - 6 - HC-KAR CNR: KAHC010531882016 NC: 2026:KHC:42994 MFA No. 145 of 2016 the expiry of 30 days from the date of accident, till the date of payment. This Court finds no reason to interfere with the said order. 10. Therefore, this appeal is devoid of merits and is dismissed. Sd/- (P SREE SUDHA) JUDGE CS CT:NR List No.: 1 Sl No.: 72