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S.B. Civil Misc. Appeal No.1385/2007
National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.
S.B. Civil Misc. Appeal No.1385/2007
National Insurance Co. Ltd.
vs.
Smt. Chunki Bai & Ors.
Date : 22.10.2008
HON'BLE MR. PRAKASH TATIA, J.
Mr.Jagdish Vyas, for the appellant.
Mr.MR Singhvi ) for the respondents
Mr.Tribhuvan Gupta )
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Heard learned counsel for the parties on appeal
itself finally in view of the fact that according to
learned counsel for the appellant, the only issue
involved in this appeal is whether the appellant
insurance company can be held liable to pay penalty
imposed under the Workmen’s Compensation Act ? And
whether there can be award of interest from the date of
accident ?
So far as the first issue is concerned, the
Hon’ble Apex Court has already laid down that the
insurance company cannot be held liable for payment of
penalty amount when compensation is awarded under the
Workmen’s Compensation Act. There was a Division Bench
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S.B. Civil Misc. Appeal No.1385/2007
National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.
judgment taking a contrary view, then the matter was
referred to Larger Bench by this Bench upon which the
Division Bench of this Court in D.B. Civil Special
Appeal No.768/2005 held that the insurance company
cannot be held liable for penalty amount awarded under
the provisions of Workmen’s Compensation Act.
In view of the above, the appellant insurance
company is not liable for payment of penalty amount
awarded under the provisions of Workmen’s Compensation
Act.
Further, in view of the judgment of the Hon’ble
Apex Court delivered in the case of National Insurance
Co. Ltd. vs. Mubasir Ahmed & Anr. reported in MACD 2007
(1) (SC) 402, the interest can be awarded from the date
of award and not from the date of accident, therefore,
the appellant’s appeal succeed on this count also and
it is held that the interest on the award shall be
payable from the date of award i.e. from 15.11.2006.
Learned counsel for the employer submits that the
penalty has been imposed by the learned Commissioner
only because of the fault of insurance company as the
insurance company committed delay in making payment of
compensation amount and, therefore, the employer cannot
be held liable to pay the amount of penalty nor can be
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S.B. Civil Misc. Appeal No.1385/2007
National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.
saddled with interest.
I perused the reasons given by the learned
Commissioner in the impugned award.
It appears that the observation against the
insurance company is very specific. The accident
occurred on 13.7.2003 and even F.I.R. was registered
and a case under Section 174 Cr.P.C. was registered and
the claim petition was submitted by the claimants on
2.12.2003. There is nothing on record which can suggest
that the employer tried to satisfy the claim of the
claimants. The insurance company reimburses the
claimants and the original liability is of the
employer. In view of the above reason, I do not find
any force in the submission of the respondents.
Consequently, this appeal is allowed. The amount
which has been paid beyond the liability of the
appellant insurance company referred above, the
appellant shall be entitled to take back and shall be
entitled to recover, if paid to the claimants.
(PRAKASH TATIA), J.
S.Phophaliya