ORIENTAL INSURANCE CO LTD Vs. MOSTT SUNITA DEVI

JUDGEMENT

(1.) HEARD the parties and perused Lower Court records and with their consent the two appeals are disposed of under Order 41 Rule 11 of the Code of Civil Procedure.

(2.) ADMITTEDLY , Satyendra Narain Singh was owner of the truck (BPM 1240) and Ganesh Prajapati (25 years) and Dinesh Choudhary (25 years) were employed respectively as driver and khalasi thereon. The vehicle at the relevant time was insured with Oriental Insurance Company Ltd. Unfortunately, while on duty, both driver and Khalasi of the said truck were killed by unknown miscreants on 16.11.1995. Their dependants filed S.C. Case Nos. 26 and 27 of 1995 before the Workmen 's Compensation Commissioner under the provisions of Workmen 's Compensation Act, 1923 (hereinafter referred to as 'the Act '). Both the cases were disposed of on 31.3.1998 by separate orders, which have been impugned in these two appeals, filed by Insurance Company.

(3.) SECTION 4A provides that compensation under Section 4 of the Act shall be paid since it fell due and where any employer was in default in paying the compensation due under the Act within one month from the date it fell due, the commissioner was empowered to direct the employer, in addition to the amount of arrears, to pay simple interest @ 12% per annum. Further, if in his opinion, there was no justification for the delay, employer, in addition to the amount of arrears and interest thereon can be directed to pay a further sum, not exceeding 50% of such amount, by way of penalty. Under Proviso to Section 4A(3)(b) order for payment of penalty cannot be passed under Section 4A(3)(b) without giving a reasonable opportunity to the employer to show cause why it should not be passed. The said proviso is not applicable, where simple interest is directed to be paid under Section 4A(3)(a).