SUPREME COURT OF INDIA

Before:- S. Saghir Ahmad and Yogesh Kumar Sabharwal, JJ.

C.A. No. 4496 of 1990. D/d. 2.2.2000

Kashibhai Rambhai Patel - Appellant

Versus

Shahabhai Somabhai Parmar - Respondents

Workmen's Compensation Act, 1923 - Penalty - Insurance Company cannot be made liable for amount of penalty under Workmen's Compensation Act - However, liability in respect of interest could be burdened on Insurance Company and also on employer.

[Para 1]

Cases Referred :-

Ved Prakash Garg v. Premi Devi & ors., 1997(4) SCT 541 (SC).

JUDGMENT

S. Saghir Ahmad, J. - Ratan Singh, conductor and the second driver who was working with the appellant, died on December 11, 1994 in an accident when the trolly which was loaded with grass upturned while being driven by the son of the appellant. The claim under the Workmen's Compensation Act, 1923 was allowed by the Commissioner who also ordered interest and penalty against the Insurance Company as well. The controversy involved in this case is covered by the decision of this Court in Ved Prakash Garg v. Premi Devi & ors., 1998-I- LLJ-363 (SC) : 1997(4) SCT 541 (SC), in which it was held that the Insurance Company, so far as the question of penalty is concerned, would not be liable under the provision of the Workmen's Compensation Act. The liability in respect of interest, however, could be burdened on the Insurance Company as also on the appellants. In view of the above, the appeal is disposed of with the observation that the Insurance Company, who is respondent No. 4 in this appeal, would not be liable for the amount of penalty, but so far as the interest is concerned, all the appellants as also respondent No. 4 would be liable. The amount of penalty would be recoverable from the appellants together with the amount of compensation if not already paid by the insurance Company (respondent No. 4).

Appeal disposed of.