NEW INDIA ASSURANCE CO. LTD. vs HARSHADBHAI AMRUTBHAI MODHIYA

The Supreme Court addressed the issue of whether an insurer is liable to pay interest on compensation awarded under the Workmen’s Compensation Act, 1923. The Court held that the insurer's liability is determined by the terms of the insurance contract, which explicitly excludes interest and penalties. The appeal was dismissed, affirming the High Court's decision that upheld the Workmen’s Compensation Court's award of compensation along with interest, relying on precedents such as Ved Prakash Garg v. Premi Devi and Others and L.R. Ferro Alloys Ltd. v. Mahavir Mahto and Another.