- (1.) THIS appeal has been preferred against the order dated 12.8.2009 passed by the learned Single Judge in W.P.(S) No.5663 of 2007, whereby the learned Single Judge had been pleased to allow the writ petition, directing the respondent -Insurance Company to pay the amount accruing towards Group Insurance to the Respondent - widow of the deceased employee. In addition, the respondent -Central Coalfields Ltd. -appellant herein had also been directed to pay interest on account of the delayed payment as it was held that the employer is liable to pay the statutory interest from the date when the amount was payable up to the date of actual payment. It is this part of the order which has been assailed by the appellant -Central Coalfields Ltd. on the ground that although the amount was not paid to the widow of the deceased employee within the time , the appellant -Company should not have been directed to pay statutory interest.
(2.) WHEN we put this question to the counsel as to why Company is not liable to pay the statutory interest, it was stated that the appellant -Company has taken action against the erring officer who had been sitting tight over the matter and not referred it to the Insurance Company for payment of the amount. This explanation is hardly worth any substance for if the employer -Company did not refer the matter to the Insurance Company as per the Rules due to which the payment was not made to the widow of the deceased employee, the employer -Company is certainly vicariously liable for the delayed payment and mere initiation of action against the erring officer is hardly a justification for getting over the order directing payment of statutory interest. If the appellant -employer has taken steps to prosecute erring officers who had been instrumental in referring the deceased employee's case to the Insurance Company for making the payment accruing towards Group Insurance , the employer -Company might be justified in realizing the amount from the erring officers but for the present, the employer - Company is certainly and vicariously liable for the payment of statutory interest to the respondent no.1 - widow of the deceased and in that view of the matter, we see no reason to interfere with the direction issued by the learned Single in directing payment of statutory interest.
(3.) THE appeal thus has no substance, which is dismissed, for the reasons mentioned hereinbefore.;