UNITED INDIA INSURANCE CO LTD Vs. MANJIT KAUR

JUDGEMENT

(1.) In the appeal arising out of an award under the Workmen's Compensation Act, 1923 (hereinafter to be referred to as 'the W.C. Act' for short) the appellant-In- surance Company has raised an interesting question with regard to its liability under the provision of Section 4-A (3) of the W.C. Act for payment of interest and penalty.

(2.) The appellant-Insurance Company is aggrieved by the order dated 16- 5-1990 passed by the Commissioner under the W.C. Act refusing to recall its order dated 31-3-1990 whereby the appellant-Insurance Company was directed to make payment of interest and penalty to the claimant on account of its failure to deposit the compensation amount within the time stipulated under the W.C. Act.

(3.) The facts of this case are not in much dispute. The husband of the claimant-Respondent No. 1 was a driver and while driving the tractor he met with an accident near Koderma, which resulted in his death. The widow- claimant respondent No. 1 filed an application for compensation under the W.C. Act before the Commissioner under the W.C. Act, Hazaribagh, against the employer-respondent No. 2, and the said application was registered as W.C. Case No. 34 of 1989. The case of the appellant-In- surance Company is that the appellant being informed about the death and filing of the application admitted its liability to pay a sum of Rs. 82,380/-. The Commissioner under the W.C. Act by his order dated 2-3-1990 directed to deposit the amount by 16-4-1990 and also called upon the appellant to show cause as to why penalty and interest should not be imposed. It is stated by the appellant-Insurance Company that the Commissioner under the W.C. Act in terms of the order dated 31-3-1990 directed the appellant-Insurance Company to deposit Rs. 82,380/- as compensation and also Rs. 20,595/- and Rs. 6,178 and paise fifty by way of penalty and interest respectively on or before 16-4-1990. The appellant-Insurance Company deposited the amount of compensation on 24-4-1990. However, on 24-4-1990 the appellant-Insurance Company filed an application before the Commissioner under the W.C. Act for recalling the order dated 31-3-1990 which was rejected by the said Commissioner in terms of the order dated 16-5- 1990 and held that since the appellant-Insurance Company failed to deposit the compensation amount within the statutory period the order for payment of interest and penalty cannot be recalled.