NEW INDIA ASSURANCE COMPANY LTD Vs. KAMLA DEVI

JUDGEMENT

(1.) By way of this appeal, the appellant has challenged the order dtd. 1/3/2013, passed by the Court of learned Commissioner, Employee's Compensation, Solan, District Solan, H.P., in WCA No.51/2 of 2011, titled Smt. Kamla Devi Versus Mrs. Kamlesh Thaur and another, in terms whereof, the claim petition filed by the claimant under Sec. 22 of the Workman's Compensation Act was allowed by learned Commissioner by awarding an amount of Rs.4,23, 580.00 with interest @ 12% per annum w.e.f. 12/7/2015, i.e. one month from the date of accident till the deposit of the amount. Learned Commissioner further ordered that the order be complied with by the Insurance Company with which the offending vehicle was insured within one month as from the date of the order, failing which it would liable to pay penalty and interest thereupon.

(2.) Leaned Senior Counsel appearing for the appellant has argued that the order passed by learned Commissioner, in terms whereof, it has been directed that in the event of failure of the Insurance Company complying the directions passed by learned Commissioner within one month as from the date of passing of the order, it will be liable to pay a penalty as also interest, is perverse order and not sustainable in the eyes of law, for the reason that the very factum of interest being levied for non compliance of the order takes care of the interest of the other party and in these circumstances, the imposition of the penalty also is totally unsustainable and bad in law. Learned Senior Counsel has drawn the attention of the Court to the judgment of Hon'ble Supreme Court in Ved Prakash Garg Versus Premi Devi, (1997) 8 Supreme Court Cases 1 and L.R. Ferro Alloys Ltd. Versus Mahavir Mahto and Another, (2002) 9 Supreme Court Cases 450 and by relying upon these judgments, he submitted that imposition of penalty by learned Commissioner on default on the part of the Insurance Company in making good the order within one month is liable to be quashed and set aside as interest of the claimant is duly protected by imposing payment of interest in the event of non compliance of the order. Accordingly, a prayer has been made that the appeal be allowed and the order passed by leaned Commissioner, to the extent penalty stands imposed upon the Insurance Company in the event of default in compliance of the order within one month as from the date of passing of the order, be set aside.

(3.) I have heard learned counsel for the parties and have gone through the impugned order as well as the judgments being relied upon by learned Senior Counsel for the appellant.