{"id":144309,"date":"2008-08-29T00:00:00","date_gmt":"2008-08-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/united-vs-bai-on-29-august-2008"},"modified":"2017-08-19T09:46:21","modified_gmt":"2017-08-19T04:16:21","slug":"united-vs-bai-on-29-august-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/united-vs-bai-on-29-august-2008","title":{"rendered":"United vs Bai on 29 August, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">United vs Bai on 29 August, 2008<\/div>\n<div class=\"doc_author\">Author: Ks Jhaveri,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nFA\/139319\/1982\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nFIRST\nAPPEAL No. 1393 of 1982\n \n\n \n \n=========================================================\n\n \n\nUNITED\nINDIA INSURANCE CO LTD - Appellant(s)\n \n\nVersus\n \n\nBAI\nJADI SAGARAM &amp; 13 - Defendant(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nVIBHUTI NANAVATI for\nAppellant(s) : 1, \nNone for Defendant(s) : 1 - 3. \nNOTICE SERVED\nfor Defendant(s) : 4 -\n14. \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE KS JHAVERI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 29\/08\/2008 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>1.\tBy<br \/>\nway of this appeal, the present appellant-original opponent<br \/>\nno.12-insurance company has challenged the order dated 23.11.81<br \/>\npassed by the Commissioner under the Workman Compensation, Junagadh<br \/>\nin  Workman Compensation Application No. 25 of 1978 whereby the<br \/>\nCommissioner allowed the claim and awarded Rs. 25,200\/- which<br \/>\nincludes 40% penalty.\n<\/p>\n<p>2.\tThe<br \/>\npresent opponent nos.1 to 3 -original applicants filed claim petition<br \/>\nvide Workman Compensation application no. 25 of 1978  under the<br \/>\nWorkman Compensation Act against the present appellant and the<br \/>\npresent opponent nos. 4 to 14 to tune of Rs. 20000\/- in respect of<br \/>\nthe accident which occurred on 02.06.78 while the deceased Bai Kunvar<br \/>\nwas extracting sugar cane juice in the sugar factory of the original<br \/>\nopponent no.1.  At that time, the deceased got trapped in the machine<br \/>\nand she sustained severe injuries.  She was operated upon but on<br \/>\n18.06.78, she succumbed to her injuries.  The claimants, being the<br \/>\nlegal heirs and representatives of the deceased, thereafter, filed<br \/>\nthe aforesaid claim petition.  After hearing the parties, the<br \/>\nauthority passed the aforesaid award.\n<\/p>\n<p>3.\tMr.\n<\/p>\n<p>Nanavati, learned advocate appearing for the appellant has submitted<br \/>\nthat the judgement and award passed by the authority is improper and<br \/>\nunjust to some extent and against the provision of law and facts and<br \/>\ncircumstances of the case.  He has submitted that the Commissioner<br \/>\nought to have considered the provisions of Workmen&#8217;s Compensation<br \/>\nAct, 1923 and exonerated the appellant insurance company from the<br \/>\nliability of the penalty.\n<\/p>\n<p>3.1\tMr.\n<\/p>\n<p>Nanavati has further submitted that having regard to the contract of<br \/>\ninsurance, the insurer was not liable to pay any penalty on the<br \/>\nawarded sum.  In support of this submission, learned advocate has<br \/>\nplaced reliance on a decision of the Apex Court in the case of  Ved<br \/>\nPrakash Garg vs. Premi Devi reported in AIR 1997 SC 3854 and<br \/>\nsubmitted that the insurance companies will be liable to make good<br \/>\nnot only the principal amounts of compensation payable by insured<br \/>\nemployers but also interest thereon if ordered by the Commissioner to<br \/>\nbe paid by the insured employers. However they would not be liable to<br \/>\npay the penalty imposed under S. 4A (3) (b).\n<\/p>\n<p>4.<br \/>\nThough served none appears for the respondents.\n<\/p>\n<p>5.\tThis<br \/>\nCourt has gone through the documents placed on record including the<br \/>\naward of the authority.  However, the prayer made in this appeal is<br \/>\nrequired to be entertained in view of the decision of the Apex Court<br \/>\nin the case of Ved Prakash Garg (supra) of wherein it is observed<br \/>\nthat when an employee suffers from an injury while on duty on the<br \/>\nmotor vehicle belonging to the insured employer, the claim for<br \/>\ncompensation payable under the Compensation Act along with interest<br \/>\nthereon, if any, as imposed by the Commissioner Sections 3 and<br \/>\n4A(3)(a) of the Compensation Act will have to be made good by the<br \/>\ninsurance company jointly with the insured employer. But so far as<br \/>\nthe amount of penalty imposed on the insured employer under<br \/>\ncontingencies contemplated by Section 4-A (3) (b) is concerned as<br \/>\nthat is on account of personal fault of the insured not backed up by<br \/>\nany justifiable cause, the insurance company cannot be made liable to<br \/>\nreimburse that part of the penalty amount imposed on the employer.<br \/>\nThe latter because of his own fault and negligence will have to bear<br \/>\nthe entire burden of the said penalty amount with proportionate<br \/>\ninterest thereon if imposed by the Workmen&#8217;s Commissioner.  In that<br \/>\nview of the matter, the insurance company is not liable to pay the<br \/>\npenalty as awarded by the Commissioner. This appeal is therefore<br \/>\nrequired to be allowed.\n<\/p>\n<p>6.\tIn<br \/>\nthe premises aforesaid, appeal is allowed.  The award passed by the<br \/>\nCommissioner under the Workman Compensation Case in  Workman<br \/>\nCompensation Application No. 25 of 1978 is quashed and set aside qua<br \/>\nliability penalty payable by the insurance company.  The<br \/>\namount of penalty of Rs. 7200\/-, if deposited, by the insurance<br \/>\ncompany shall be refunded to the insurance company.  However, if the<br \/>\namount is withdrawn by the original claimants, the same shall not be<br \/>\nrecovered from the original claimants.  It will be open for the<br \/>\ninsurance company to recover the amount of penalty from the owner and<br \/>\nif the amount is not paid to the claimants it will be open for the<br \/>\nclaimants to recover the same from the owner.  The award of the<br \/>\nCommissioner is modified accordingly.  No order as to costs.\n<\/p>\n<p>(K.S.\n<\/p>\n<p>JHAVERI, J.)<\/p>\n<p>Divya\/\/<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court United vs Bai on 29 August, 2008 Author: Ks Jhaveri,&amp;Nbsp; Gujarat High Court Case Information System Print FA\/139319\/1982 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 1393 of 1982 ========================================================= UNITED INDIA INSURANCE CO LTD &#8211; Appellant(s) Versus BAI JADI SAGARAM &amp; 13 &#8211; Defendant(s) ========================================================= [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-144309","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>United vs Bai on 29 August, 2008 - Free Judgements of Supreme Court &amp; 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