High Court Rajasthan High Court

United India Insurance Company vs Supheda And Ors. on 2 July, 1997

Rajasthan High Court
United India Insurance Company vs Supheda And Ors. on 2 July, 1997
Equivalent citations: 1 (1998) ACC 169
Author: S K Sharma
Bench: S K Sharma


JUDGMENT

Shiv Kumar Sharma, J.

1. Hakimdan, a young helper working on truck was crushed in an accident. At the relevant time he was employee of respondent No. 3. Learned Commissioner, Workmen Compensation, Alwar (for short the Commissioner) framed as many as four issues out of the pleadings of the parties and after recording the evidence awarded vide dated February 2, 1996, a sum of Rs. 86,764/- as compensation to the claimants alongwith 50% penalty observing that the provisions contained in Section 4A of the Act were flouted. Against this order of the learned Commissioner that the present action for filing the appeal has been resorted to.

2. The only submission of Mr. Mehta, learned Counsel for the appellant is that the appellant-Insurance Company cannot be held liable for penalty.

3. This question was dealt in New India Assurance Co. Ltd. v. Risal Singh 1997 (1) T.A.C. 444 (Raj.), and New India Assurance Co. Ltd. v. Mst. Rashida and Ors. 1997 (1) T.A.C. 339 (Raj.), and it was held that if the liability of Insurance Company arises for the principal amount and the same is not deposited or paid within one month from the date of the accident as required under Section 4A(3) of the Workmen’s Compensation Act, 1923, then the insurer also incurs the liability to pay the penalty and interest. In the case on hand admittedly the principal amount was deposited after ten months from the date of the accident. There is no force in the submission made by the learned Counsel.

4. In the result the appeal fails and is hereby dismissed. Costs easy. The record of the case be sent back forthwith.