AMBA Vs. V SOWBHAGYAMMA

JUDGEMENT

(1.) THIS appeal is filed by the legal representatives of the owner of the lorry, to challenge the order dated 30. 4. 97 in Case No. LOD:wcr:cr 68 of 1996, insofar as the same related to fastening the liability with regard to payment of penalty and interest to the extent of Rs. 1,03,990, being 50 per cent of the total award of rs. 2,07,980 awarded under section 4 of the Workmen's Compensation Act, 1923, henceforth for convenience 'the Act', by the Commissioner for Workmen's Compensation, Davanagere, henceforth in brief referred as 'the WCC'.

(2.) THE learned counsel for the appellants had taken me in brief to the facts of the case. They are as hereunder: that one Malleshappa, the husband of the respondent No. 1 and father of the respondent No. 2, was the driver under one b. N. Shivappa, the husband of the appellant No. 1 and father of the appellant Nos. 2 to 4. The said Malleshappa died on 28. 4. 1996 in an accident. The L. Rs. of the deceased Malleshappa, the respondent nos. 1 to 2 herein have claimed an award of Rs. 3,50,000 together with interest at the rate of 12 per cent per annum and in consideration of the said claim the WCC had awarded a sum of Rs. 2,07,980 as against the said B. N. Shivappa and the respondent No. 3, New India Assurance co. Ltd. The WCC had also directed that the said B. N. Shivappa, the lorry owner and the respondent No. 3 insurance company were jointly liable to pay the award amount to respondent Nos. 1 and 2 herein. In the penultimate para of the impugned order the WCC has also awarded 50 per cent of the above sum, i. e. , Rs. 1,03,990 as penalty and further imposed interest at the rate of 12 per cent per annum on that amount payable by the lorry owner, the above said B. N. Shivappa.

(3.) WHILE urging the grounds made out in the instant appeal Mr. Vasanth, learned counsel appearing for the appellants argued that there was no justification on the part of the WCC to impose 50 per cent of the award amount to be paid by the lorry owner, i. e. , B. N. Shivappa. According to him the said lorry owner was not issued with any show cause notice as contemplated under proviso to section 4 - A (3) (b)of the Act. He had also pointed out that in filing the instant appeal before this court the L. Rs. of the lorry owner have specifically taken the contention at para 14 thereof that the WCC had fastened the liability with regard to the payment of penalty on the lorry owner without complying with the provisions under section 4 - A (3) (b) of the Act. In substance what was submitted by the learned counsel for the appellants was that his party was not put to notice before fastening the said liability of payment of penalty and interest thereon. Therefore, he prayed that the impugned order passed by the WCC insofar as the same related to fastening the liability of payment of penalty and interest thereon, be set aside.