NEW INDIA ASSURANCE CO LTD Vs. JAGDISH RAM

JUDGEMENT

(1.) Appellant New India Assurance Co. Ltd. is aggrieved by the judgment dated 31.3.1997 of the Commissioner for Workmen's Compensation, Kandaghat whereby a sum of Rs. 94,780 on account of compensation, another sum of Rs. 47,360 on account of penalty and Rs. 5,680 on account of interest have been ordered to be paid by the appellant to respondent Jagdish Ram, hereinafter called 'the claimant'.

(2.) Respondent-claimant Jagdish Ram was employed as driver by the respondent Joginder Singh to drive his truck No. HP 07-1529. The truck was insured with the appellant for covering risk of the driver and other employees. The truck met with an accident on 20.4.1994, when it was being driven by claimant Jagdish Ram. He sustained injuries including fracture of a leg resulting in permanent disability to the extent of 30 per cent. No compensation was paid to the claimant by the insured or the insurer within one month time prescribed under the Workmen's Compensation Act. The claimant then filed a petition claiming compensation along with penalty and interest. He stated that he used to be paid Rs. 1,000 per month as salary and in addition to that he was paid Rs. 40 per day for food and other expenses.

(3.) The respondent Joginder Singh, the owner of the truck admitted that the accident had taken place and the claimant had sustained injuries resulting in permanent disability, as alleged in the petition. He also admitted that the claimant was paid salary at the rate of Rs. 1,000 per month but denied that he was paid daily allowance at the rate of Rs. 40. It was stated that the rate of daily allowance was Rs. 25 only. The insurance company, i.e., the present appellant raised a number of preliminary objections. It was alleged that the claimant was driving the vehicle without holding a valid and effective driving licence, there were no valid documents in respect of the vehicle, there was collusion between the claimant and the owner of the truck and there was no privity of contract between the claimant and the insurer. The Commissioner for Workmen's Compensation, after recording the evidence of the parties, held that the claimant received an injury resulting in permanent disability to the extent of 30 per cent and was entitled to compensation, A sum of Rs. 94,780 was held to be payable on account of compensation. The appellant and the insured were also held liable to pay Rs. 47,360 on account of penalty, because of their failure to pay the compensation within the prescribed time limit. Interest was also ordered to be paid at the rate of 6 per cent and the amount was worked at Rs. 5,680. It was further ordered that all the three amounts shall be payable by the appellant. Direction was given to the appellant to pay the money within 30 days. It was ordered that in case the money was not paid within 30 days, the appellant would be liable to pay interest from the date of the accident to the date of the deposit of the money.