ORIENTAL INSURANCE CO. LTD Vs. KUMLI DEVI

JUDGEMENT

(1.) Admitted on following Substantial Question of Law: "Whether the Commissioner below is justified to direct the Appellant to pay a penalty of Rs.1,00,000.00 alongwith 12% interest from 13/11/2010 in violation of the Apex Court Judgment rendered in Ved Prakash Garg v. Premi Devi and ors., 1997 ACJ 1, wherein it has been held that penalty is to be levied upon the Employer and while the amount of Compensation is to be borne by the Insurer?"

(2.) With the consent of the learned Counsel for the parties, this Appeal has been heard and is being decided today itself.

(3.) Instant Appeal filed under Sec. 30 of the Employees Compensation Act, 1923, lays challenge to Order, dtd. 30/6/2022, passed by the learned Senior Civil Judge, Sarkaghat-cum-Commissioner under Employees Compensation Act, 1923 (In short "the Act"), District Mandi, H.P., in case 14 of 2013, whereby Court below while allowing the Claim Petition having been filed by Respondents No.1 & 2 (hereinafter referred to as "the Claimants"), held Respondent No.3-Employer liable to pay Compensation to the tune of Rs.8,79,800.00 to the Claimants alongwith simple interest @ 12% per annum w.e.f. 13/11/2010 till the actual payment of amount. Besides above, learned Commissioner having taken note of the fact that Compensation amount was not deposited within thirty days in terms of Sec. 4-A of the Act, it also saddled the Appellant-Insurance Company with liability to pay penalty of Rs.1.00 lac alongwith interest @12% per annum from the date i.e. 13/11/2010.