{"id":203397,"date":"2010-11-01T00:00:00","date_gmt":"2010-10-31T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-united-india-insurance-vs-the-district-collector-on-1-november-2010"},"modified":"2018-03-02T10:57:36","modified_gmt":"2018-03-02T05:27:36","slug":"ms-united-india-insurance-vs-the-district-collector-on-1-november-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-united-india-insurance-vs-the-district-collector-on-1-november-2010","title":{"rendered":"M\/S.United India Insurance &#8230; vs The District Collector on 1 November, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">M\/S.United India Insurance &#8230; vs The District Collector on 1 November, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\nDATED: 01\/11\/2010\n\nCORAM\nTHE HONOURABLE MR.JUSTICE K.CHANDRU\n\nW.P.(MD)No.8505 of 2009\nand\nM.P.(MD)No.1 of 2009\n\nM\/s.United India Insurance Company Ltd.,\nRepresented by its Divisional Manager,\nNo.30, Ramakrishnapuram (North),\nKarur.\t\t\t\t\t\t... Petitioner\n\nVs.\n\n1.The District Collector,\n   Karur.\n\n2.The Divisional Revenue Officer,\n   Karur.\n\n3.The Deputy Commissioner of Labour,\n   Tiruchirapalli.\n\n4.P.Ravichandran\t\n5.V.Murugan\t\t\t\t\t...  Respondents\n\nPRAYER\n\nWrit Petition is filed under Article 226 of the Constitution of India\npraying for the issue of a Writ of Certiorari, to call for the records in\nproceedings in Na.Ka.No.H1\/7977\/2009, dated 21.05.2009 on the file of the first\nrespondent and quash the same.\n\n!For Petitioner\t\t... Mr.R.Srinivasan\n^For Respondents 1to3\t... Mr.S.C.Herold Singh\n\t\t\t    Government Advocate\nFor Respondent No.5\t... Mr.P.Arun Jayatram\n\n*********\n:ORDER\n<\/pre>\n<p>*******<\/p>\n<p>\t\tThe Writ Petition is filed by M\/s.United India Insurance Company<br \/>\nLimited represented by its Divisional Manager, Karur. In the Writ Petition, the<br \/>\ninsurer challenged the order of the first respondent dated 21.05.2009 and sought<br \/>\nfor setting aside the same. By the impugned order, the first respondent, the<br \/>\nDistrict Collector, Karur directed the Tahsildar, Karur to recover a sum of<br \/>\nRs.31,976\/- from the petitioner Insurance Company towards the amount payable to<br \/>\nthe fifth respondent herein in respect of W.C.No.307 of 2001.\n<\/p>\n<p>\t\t2. When the Writ Petition came up for hearing on 27.08.2009, this<br \/>\nCourt granted an order of interim stay on the basis of the judgment of the<br \/>\nSupreme Court in <a href=\"\/doc\/1513213\/\">New India Assurance Company Limited vs. Harshadbhai Amrutbhai<br \/>\nModhiya and<\/a> another reported in AIR 2006 Supreme Court 1926.\n<\/p>\n<p>\t\t3. The ground raised by the petitioner Insurance Company was that<br \/>\nthey are not liable to pay the amount as ordered by the Commissioner. In any<br \/>\nevent, they have deposited the compensation amount even in the year 2003 and<br \/>\nhence, they are not liable to pay interest as per the policy condition.\n<\/p>\n<p>\t\t4. The fifth respondent instituted a proceeding under the Workmen&#8217;s<br \/>\nCompensation Act claiming compensation against the fourth respondent as well as<br \/>\nthe petitioner Insurance Company. The Compensation Commissioner, in W.C.No.307<br \/>\nof 2001, ordered a sum of Rs.1,34,050\/- payable by the fourth respondent and<br \/>\nsince the fourth respondent is insured by the petitioner Insurance Company, the<br \/>\npetitioner Insurance Company was directed to deposit the amount within 30 days,<br \/>\nby an order dated 30.05.2003. The petitioner Insurance Company deposited the<br \/>\namount in the Canara Bank as ordered by the Compensation Commissioner. But,<br \/>\nhowever, since the Compensation Commissioner awarded the interest at the rate of<br \/>\n12% from the date of accident till the date of payment, a further sum of<br \/>\nRs.31,976\/- was directed to pay.\n<\/p>\n<p>\t\t5. It is claimed by the petitioner Insurance Company that the order<br \/>\nwas received on 19.06.2003 and they have paid the entire amount on 04.07.2003.<br \/>\nSince they have deposited the amount within 30 days, they are not liable to pay<br \/>\ninterest. The Commissioner, however, held that as the order itself indicates 12%<br \/>\ninterest from the date of accident till the date of payment, they are liable to<br \/>\npay even that amount. Since the said amount has not been paid, the Revenue<br \/>\nrecovery proceedings were directed to be initiated by the District Collector,<br \/>\nwho accordingly, directed the Tahsildar, Karur to recover the amount.<br \/>\nChallenging the same, the Writ Petition came to be filed.\n<\/p>\n<p>\t\t6. On behalf of the second respondent, a counter-affidavit dated<br \/>\n04.03.2010 has been filed stating that since the entire amount as ordered by the<br \/>\nCommissioner was not deposited, the revenue recovery proceedings have to be<br \/>\nissued. In the judgment in New India Assurance Company Limited&#8217;s case cited<br \/>\nsupra, upon which reliance was placed, the Supreme Court in paragraph No.19, has<br \/>\nheld as follows:-\n<\/p>\n<p>\t\t&#8220;19. As indicated hereinbefore, a contract of insurance is governed<br \/>\nby the provisions of the Insurance Act. Unless the said contract is governed by<br \/>\nthe provisions of a statute, the parties are free to enter into a contract as<br \/>\nfor their own volition. The Act does not contain a provision like Section 147 of<br \/>\nthe Motor Vehicles Act. Where a statute does not provide for a compulsory<br \/>\ninsurance or the extent thereof, it will bear repetition to state, the parties<br \/>\nare free to choose their own terms of contract. In that view of the matter,<br \/>\ncontracting out, so far as reimbursement of amount of interest is concerned, in<br \/>\nour opinion, is not prohibited by a statute.&#8221;\n<\/p>\n<p>\t\t7. Though there is no quarrel about the proposition of law<br \/>\npropounded by the Supreme Court, in the present case, there is no challenge made<br \/>\nto the order passed by the Commissioner in the main W.C., by the Insurance<br \/>\ncompany before this Court under Section 30 of the Workmen&#8217;s Compensation Act,<br \/>\nwherein interest was ordered to be paid by the Insurance Company. It is not as<br \/>\nif the petitioner is not a party to the proceedings before the Commissioner. On<br \/>\nthe other hand, having allowed the order to become final, they cannot challenge<br \/>\nthe consequential proceedings and hence, the petitioner is bound to pay the<br \/>\namount, failing which, the authorities are at liberty to recover the amount from<br \/>\nthe petitioner Insurance Company. Hence, this Writ Petition stands dismissed.<br \/>\nConsequently, the connected miscellaneous petition is closed. No costs.\n<\/p>\n<p>SML<\/p>\n<p>To<\/p>\n<p>1.The District Collector,<br \/>\n   Karur.\n<\/p>\n<p>2.The Divisional Revenue Officer,<br \/>\n   Karur.\n<\/p>\n<p>3.The Deputy Commissioner of Labour,<br \/>\n   Tiruchirapalli.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court M\/S.United India Insurance &#8230; vs The District Collector on 1 November, 2010 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 01\/11\/2010 CORAM THE HONOURABLE MR.JUSTICE K.CHANDRU W.P.(MD)No.8505 of 2009 and M.P.(MD)No.1 of 2009 M\/s.United India Insurance Company Ltd., Represented by its Divisional Manager, No.30, Ramakrishnapuram (North), Karur. &#8230; Petitioner Vs. 1.The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-203397","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S.United India Insurance ... vs The District Collector on 1 November, 2010 - Free Judgements of Supreme Court &amp; 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