VED PRAKASH GARG ETC. versus PREMI DEVI AND ORS. ETC.

VED PRAKASH GARG ETC. versus PREMI DEVI AND ORS. ETC.

The insurance company is liable to pay both the principal compensation amount and the interest awarded by the Commissioner for delayed payment under the Workmen's Compensation Act; however, liability to pay penalty imposed under Section 4-A(3)(b) is exclusively on the employer as it arises on account of the employer's personal fault and is not covered by the policy or statutory provisions. The insurance company is not liable for the penalty component.

Parties
Appellant: Ved Prakash Garg; Respondent: Premi Devi and Ors.
Jurisdiction
India
Judgment Date
25 September 1997
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From Himachal Pradesh High Court in F.a. Nos. 87 88 of 1995
Outcome
Appeals partly allowed
Legal Topics
Workmen's Compensation, Motor Accident Claims, Liability of Insurers, Interest and Penalty Under Compensation Act
Motor Vehicles Law Labour Law Insurance Law Workmen's Compensation Motor Accident Claims Liability of Insurers Interest and Penalty Under Compensation Act

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Parties

Ved Prakash Garg

Appellant

Premi Devi and Ors.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From Himachal Pradesh High Court in F.a. Nos. 87 88 of 1995

Legal Issues

  1. 1 Whether the insurance company, having insured the employer-owner for liabilities under the Workmen's Compensation Act, is liable to pay both interest and penalty awarded by the Commissioner under Section 4-A(3) of the Compensation Act.

Ratio Decidendi

The insurance company is liable to pay both the principal compensation amount and the interest awarded by the Commissioner for delayed payment under the Workmen's Compensation Act; however, liability to pay penalty imposed under Section 4-A(3)(b) is exclusively on the employer as it arises on account of the employer's personal fault and is not covered by the policy or statutory provisions. The insurance company is not liable for the penalty component.

Court Disposition

Appeals partly allowed

Orders

  • The insurance company is liable to pay the principal compensation amounts and interest at 6% per annum from the date of the accident till payment as awarded by the Workmen's Commissioner.
  • The insurance company is not liable to pay the penalty amounts or interest thereon imposed under Section 4-A(3)(b); such penalty to be borne by the employer only.