High Court Rajasthan High Court - Jodhpur

The New India Insurance Co Ltd vs Tirath Das And Another on 11 March, 2010

Rajasthan High Court – Jodhpur
The New India Insurance Co Ltd vs Tirath Das And Another on 11 March, 2010
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      IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
                        AT JODHPUR


                         :JUDGMENT:

D.B. CIVIL SPECIAL APPEAL NO.17/1997
(New India Insurance Co. Vs. Tirath Das & Ors.)

Date of Judgment : 11.03.2010

PRESENT

HON’BLE MR. JUSTICE A.M. KAPADIA
HON’BLE MR. JUSTICE GOPAL KRISHAN VYAS

Mr. Jagdish Vyas, for the appellant.

Mr.   S.G. Ojha           }
Mr.   K.K. Bhati on behalf of
Mr.   D.K. Parihar        }, for the respondents.



Heard learned counsel for the parties.

In this appeal filed under Section 18 of the Rajasthan

High Court Ordinance, 1949, the New India Insurance Co. Ltd.,

has challenged the judgment dated 3.1.1996 passed by learned

Single Judge in SB Civil Misc. Appeal No.299/1989 whereby the

learned Single Judge enhanced the compensation so also held

the Insurance Company liable for interest and penalty both.

Learned counsel for the appellant while inviting attention of this
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Court towards the judgment rendered by Hon’ble Apex Court in

case of Kamla Chaturvedi Vs. National Insurance Co. & Ors.,

reported in MACD 2009 (SC) 4 argued that in the said judgment

Hon’ble Apex Court held that the penalty part of the claim is to

be paid by the employer and not by the Insurance Company.

We have perused the impugned judgment dated

3.1.1996 as well as the judgment cited by learned counsel for

the appellant.

After perusing the judgment of Hon’ble Apex Court in

case of Kamla Chaturvedi (supra), we are of the opinion that as

per the verdict of Hon’ble Apex Court, the penalty is to be paid

to the workman by the employer and not by the Insurance

Company. In this view of the matter, the impugned judgment

dated 3.1.1996 passed by learned Single Judge is modified to

the extent of payment of penalty by the employer and not by the

Insurance Company. However, it is made clear that the

remaining part of the interest and enhanced compensation shall

be deposited by the Insurance Company within a period of three

months after adjusting the previous amount, which is already

deposited by the Insurance Company. Further, the liability

imposed upon the Insurance Company with regard to penalty is

hereby shifted to the employer and employer is directed to
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deposited the amount of penalty within a period of three months.

It is made clear that if any amount of penalty is deposited by the

employer, the same shall be adjusted and shall be paid to the

claimant.

Accordingly, this appeal is partly allowed.

(GOPAL KRISHAN VYAS), J (A.M. KAPADIA), J

arun