UNITED INDIA INSURANCE COMPANY Vs. L N TAMULY

JUDGEMENT

(1.) This is an appeal under Section 30 (1)' (aa) of the Workmen's Compensation Act 1923 filed by the M/s United India Insurance Company Ltd. against the order dated 19.6.89 of the Commissioner, Workmen's Compensation, Kamrup awarding interest and penalty under Section 4A of the said Act.

(2.) The brief facts are that on 24.7.86 a Truck bearing No. AMZ 5876 met with an accident at Bhangagarh and one Shri Sushanta Kumar Dey who was employed in the said Truck as a Bandy-man died in the said accident. The father of Late Sushanta Kumar Dey, respondent No. 3 filed Workmen Compensation case before the Commissioner of Workmen's Compensation, Kamrup for compensation of Rs. 80,000/- against the respondent No. 3 who was the owner of the Truck and the employer of Sushanta Kumar Dey and the appellant, who was the insurer of the Truck. Written statements were filed by the respondent No. 3 and the appellant and on the said pleadings of the party 7 issues were framed by the Workmen's Compensation Commissioner, Kamrup. By the impugned judgment dated 19.6.89 the Commissioner, Workmen's Compensation, Kamrup held that the issues were not disputed and awarded an amount of Rs. 61,586/- as compensation, an amount of Rs. 10,469.62 as interest at the rate of six per cent per annum on the compensation and an amount of Rs. 15,396.50 as penalty at the rate of twenty-five per cent of the compensation to be paid by the appellant to the claimant within 7 days from the date of the order. In this appeal, the appellant has challenged only the interest and penalty amounts of Rs. 10,469.62 and Rs. 15,396.50 respectively. On 15.9.89, this Court while admitting the appeal, rejected the prayer of the appellant for stay of the payment of interest, but allowed the prayer for stay of the penalty and directed that the penalty amount shall remain in deposit with the Commissioner, Workmen's Compensation, Kamrup, who shall keep in Bank so that interest may accrue and the amount with interest shall be paid to the party succeeding in this appeal.

(3.) At the hearing of the appeal, Mr. Barkataki, learned counsel for the appellant submitted that under the policy of insurance, the appellant as the insurer was liable only for the compensation payable under Section 3 of the Workmen's Compensation Act and not for the interest and penalty awarded under Section 4-A of the Act, for the employer's default to pay the compensation to the claimant within the stipulated time. In support of this submission Mr. Barkataki relied on a judgment of a Division Bench of this Court in the case of United India Insurance Company - Vs- State of Assam (1992) 2 GLR 260 in which it has been held that the liability of the insurer will depend on the terms of the insurance policy. In the appeal before this Court, a carbon copy of the certificate of insurance in respect of the Truck AMZ 5876 for the period 2.1.86 to 1.1.87 was produced by the appellant to show that the liability of the appellant did not extend to penalty and interest. He further stated that in the present case, the appellant was not informed of the accident by the insurer and the appellant came to know of the accident only on 11.1.88 when it received a notice of the Workmen's Compensation case from the Commissioner of Workmen's Compensation, Kamrup. He accordingly argued that the impugned judgment in so far as it makes the appellant liable for the interest and penalty of Rs. 10,469.62 and Rs. 15,396.50 should be set aside or modified by this Court.