NEW INDIA ASSURANCE CO LTD Vs. NIRANJAN SADANGI

JUDGEMENT

(1.) The insurer has filed this appeal against the order of the Workmen's Compensation Commissioner, Berhampur (in short 'the Commissioner').

(2.) The thrust of the appeal is against the direction of the Commissioner regarding payment of Rs. 44,374 towards penalty and Rs. 887.48 towards interest. However, at the time of hearing of the appeal, the learned counsel for the appellant fairly submitted that the direction regarding payment of interest by the insurer is not being disputed and the same shall be complied with by the insurance company. Learned counsel has, however, vehemently submitted that the direction regarding payment of penalty by the insurance company is not justified and the penalty, if any, is to be paid by the owner.

(3.) The contention of the counsel for the appellant regarding the liability of the insurer to pay the interest while claiming exemption from paying the penalty is obviously based on the decision in Ved Prakash Garg v. Premi Devi, 1998 ACJ 1 (SC). In the aforesaid decision of the Supreme Court, the question as to whether the insurer is liable to reimburse the amount of interest and penalty under section 4-A of the Workmen's Compensation Act, 1923 (hereinafter referred to as 'the Act') was considered and it was observed: