P.J. Narayan vs Union Of India (Uoi) And Ors.

The petitioner sought a direction to compel an insurance company to delete a policy clause exempting the insurer from paying interest on compensation under the Workmen's Compensation Act, 1923. The Supreme Court held that statutory liability for compensation rests with the employer, not the insurance company. Since insurance is a contractual agreement, the insurer is entitled to limit its liabilities, including the exclusion of interest, in the absence of a contrary statute.