NEW INDIA ASSURANCE CO LTD Vs. SHANTI DEVI

JUDGEMENT

(1.) THIS apped by New India Assurance Co.Ltd. is directed against order dt. 22.12.90 of the Commissioner, Workmen 'sCompensation at Hazarigagh directing the appellant to pay to the claimants before him a sum of Rs.78824/ - as compensation under section 3 of the Workmen 'sCompensation Act, 1923 (hereinafter to be referred to as the Compensation Act) and his subsequent order dt. 27.2.91 for payment of Rs. 19706/ - by way of penalty and Rs. 5911.80 ps. on account of interest in accordance with the provisions of section 4 -A of said Act.

(2.) THE compensation proceeding bearing case no.8. W.C.8/90 (C) was commenced on 15.1.90 before the Commissioner Workmen 'sCompensation at Hazaribagh on an application having been filed by the widow and minor children of late Mohan Ram of village Murpa within Mandu Police Station in the district of Hazaribagh, claiming a sum of Rs.88,000/ - compensation from respondent nos.5 and 6. It was stated by them that late Mohan Ram was driver of a dumper, a motor vehicle bearing registration no.BPM 2828 belonging to R.No.6 Krishan Singh and at the relevant time had been hired to R.no.5 Deoraj Singh a contractor of Kuju under Central Coalfields Ltd. In course of his employment as the driver of the said motor vehicle, late Mohan Ram met with a fatal accident sometime between the 6th and 7th of November, 1989 within the local limits of Mandu police station in the district of Hazaribagh and his death came to be known on 8.11.89. He was drawing a monthly salary/wages of Rs.1650/ - and was then aged about 35 years. The notice of the claim application filed by the claimants who are R.Nos. 1 to 4 in the present appeal was served on R.Nos.5 and 6.

(3.) FROM the record of the compensation proceeding it appears that in the meantime, the claimants had filed an application informing the Commissioner, Workmen 'sCompensation, that the vehicle in -question had been insured by the New India Assurance Co.Ltd., Main Road, Ramgarh Cantontment, namely, the present appellant, and filed a photocopy of certificate of insurance, according to which the policy of insurance was valid between 21.7.89 and 20.7.90. Consequently, the appellant was impleaded in the proceeding as one of the opp.parties and notice was sent to them under registered cover. When they did not appear, the impugned order dt. 22.12.90 was passed by the Commissioner, Workmen 'sCompensation, in view of the admission . of the claim of the claimants/respondents by the owner R.No.6. It was admitted by the owner R.No.6 that monthly wages of the deceased -workman who had died as a result of fatal acident in course of his employment as driver of the motor vehicle in question, and was aged about 35 years at the relevant time. In terms of section 4 of the Compensation Act, his wage was taken to be Rs.1000/ - and by multiplying 40% of the said amount that is Rs.400A with the relevant factor as mentioned in Schedule IV of the Compensation Act, that is, 197.06, the amount of compensation payable to the claimants was arrived at by the Commissioner at Rs. 78,824/ -. In view of the fact that the owner of the vehicle was insured by the appellant and the policy of insurance was in force at the relevant time and in view of the provisions of section 147 of the Motor Vehicles Act, 1988, the Commissioner directed the appellant to pay the said amount of Rs. 78,824/ - to the dependants of the deceased -workmen or deposit the same within 40 days from the date of the order. Notice was, accordingly, sent to the appellant. When the amount of compensation so awarded was not deposited within the period so fixed, which expired on 1.2.91, a fresh notice was directed to be