NATIONAL INSURANCE CO LTD Vs. JABUNBI

JUDGEMENT

(1.) THIS appeal by the insurance company has been directed against the order dated 21st November, 1977 passed by Commissioner for Workmen's Compensation in case No. 24 of 1977, whereby the appellant insurance company has been directed to pay the balance of Rs. 2,000/- towards the compensation.

(2.) ABDUL Sattar, late husband of applicant-respondent No. 1, Jabunbi, was in the employment of non-applicant Nos. l and 2, who died on 24th September, 1972 due to injury sustained by him during the course of his employment. The applicant (respondent No. 1 herein) made an application for compensation. The Commissioner for Workmen's Compensation-cum-Labour Court, Jabalpur awarded compensation of Rs. 10,000/- against respondent Nos. 2 and 3 and as a sum of Rs. 8,000/- was already deposited by the employers, the balance of Rs. 2,000/- was directed to be paid by the respondent Nos. 2 and 3 as well as the appellant-insurance company. A sum of Rs. 5,000/- was also imposed as penalty for not depositing the compensation within 30 days of the dealth.

(3.) THE contention of the learned Counsel for the appellant-insurance company is that in view of Section 14 of the Workmen's Compensation Act, 1923 no liability could be imposed against the insurer unless the employers are declared insolvent.