GURU NANAK INDUSTRIES Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) WHETHER, the Insurance Company-respondent no. 2 is liable to reimburse the employer-appellant and if yes, to what extent, being the only issue contested in present appeal, many details of the litigation are not required to be reproduced. The appeal arises from the decision in Application w. C. No. 10 of 1987, decided vide judgment and order dated 7-6-1989 by the learned Commissioner for Workmen's Compensation and Judge, Labour Court, aurangabad. In the report filed by the Inspector of Factories (Class I ). Aurangabad, initially, parents of the deceased Sukhdeo appeared and ultimately the claim was contested by his widow. It is said that, the deceased Sukhdeo was employed with appellant-industry and he died as a result of electrocution on 25-5-1987 at 2. 00 p. m. and as such, death is held by the trial Court Judge to be during the course of the employment. The learned Commissioner awarded compensation of Rs. 57,264. 24 and penalty of 50 per cent, which comes to Rs. 28,632. 12. The Industry is also charged with interest at the rate of 6 per cent per annum on the compensation amount from 25-6-1987 to the date of payment.

(2.) FOR the reasons discussed in paragraph 11 of his judgment, the learned commissioner has held the insurance company not liable to the compensation amount in this matter, directly. He has observed that, if at all, the Industry is entitled to get reimbursement of the compensation amount from the insurance company, separately. The learned Judge has, therefore, directed the employer to pay the whole amount.

(3.) HEARD Advocates Shri Darak and Shri Upadhye for the respective parties. Advocate Shri Darak has submitted that, the entire amount is already paid by the employer to the claimants. However, according to him, the employer is entitled to be reimbursed for fullest amount by the insurance company. He has placed reliance upon the policy which is produced along with application at exhibit C-41. The policy is read in evidence by mutual consent of both the advocates. Although, the policy, in clause 8 of its terms and conditions, incorporates an arbitration clause, in this appeal filed in the year 1989, both the lawyers have conceded that time to apply for arbitration has lapsed and, therefore, both of them agree to proceed with the appeal, without reference to arbitration.