Allowed

National Ins Co. Ltd. v. Chunki Bai and Ors.

Rajasthan HC21 Oct 2008CMA/1385/2007

Case brief

AI extract

What is this about?

The Single Bench of the S.B. allowed the appeal by holding the insurance company not liable for penalty under the Workmen's Compensation Act. Interest is payable from the date of award, not the accident date. The employer remains liable for original compensation and penalty.

What did the court decide?

Appeal allowed; appellant entitled to recover amount paid beyond liability; interest payable from date of award.

National Ins Co. Ltd. Vs Chunki Bai and Ors. — Service and Employment | Rajasthan HC (2008)

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S.B. Civil Misc. Appeal No.1385/2007 National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.

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S.B. Civil Misc. Appeal No.1385/2007

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National Insurance Co. Ltd.

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vs.

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Smt. Chunki Bai & Ors.

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Date : 22.10.2008

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HON'BLE MR. PRAKASH TATIA, J.

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Mr.Jagdish Vyas, for the appellant. Mr.MR Singhvi ) for the respondents Mr.Tribhuvan Gupta )

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Heard learned counsel for the parties on appeal itself finally in view of the fact that according to learned counsel for the appellant, the only issue involved in this appeal is whether the appellant insurance company can be held liable to pay penalty imposed under the Workmen's Compensation Act ? And whether there can be award of interest from the date of accident ?

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So far as the first issue is concerned, the Hon'ble Apex Court has already laid down that the insurance company cannot be held liable for payment of penalty amount when compensation is awarded under the Workmen's Compensation Act. There was a Division Bench

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S.B. Civil Misc. Appeal No.1385/2007 National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.

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judgment taking a contrary view, then the matter was referred to Larger Bench by this Bench upon which the Division Bench of this Court in D.B. Civil Special Appeal No.768/2005 held that the insurance company cannot be held liable for penalty amount awarded under the provisions of Workmen's Compensation Act.

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In view of the above, the appellant insurance company is not liable for payment of penalty amount awarded under the provisions of Workmen's Compensation Act.

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Further, in view of the judgment of the Hon'ble Apex Court delivered in the case of National Insurance Co. Ltd. vs. Mubasir Ahmed & Anr. reported in MACD 2007 (1) (SC) 402, the interest can be awarded from the date of award and not from the date of accident, therefore, the appellant's appeal succeed on this count also and it is held that the interest on the award shall be payable from the date of award i.e. from 15.11.2006.

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Learned counsel for the employer submits that the penalty has been imposed by the learned Commissioner only because of the fault of insurance company as the insurance company committed delay in making payment of compensation amount and, therefore, the employer cannot be held liable to pay the amount of penalty nor can be

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S.B. Civil Misc. Appeal No.1385/2007 National Insurance Co. Ltd. vs. Smt. Chunki Bai & Ors.

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saddled with interest.

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I perused the reasons given by the learned Commissioner in the impugned award.

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It appears that the observation against the insurance company is very specific. The accident occurred on 13.7.2003 and even F.I.R. was registered and a case under Section 174 Cr.P.C. was registered and the claim petition was submitted by the claimants on 2.12.2003. There is nothing on record which can suggest that the employer tried to satisfy the claim of the claimants. The insurance company reimburses the claimants and the original liability is of the employer. In view of the above reason, I do not find any force in the submission of the respondents.

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Consequently, this appeal is allowed. The amount which has been paid beyond the liability of the appellant insurance company referred above, the appellant shall be entitled to take back and shall be entitled to recover, if paid to the claimants.

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(PRAKASH TATIA), J.

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S.Phophaliya

National Ins Co. Ltd. v. Chunki Bai and Ors.

Case brief

What is this about?

What did the court decide?

National Ins Co. Ltd. v. Chunki Bai and Ors.

Case brief

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What did the court decide?

What the court decided

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