UNITED INDIA INSURANCE CO LTD Vs. ROOP KANWAR

JUDGEMENT

(1.) This special appeal is directed against the judgment and order of the learned single Judge dated 1.8.1990, in S.B. Civil Misc. Appeal No. 86 of 1985 [reported in 1991 ACJ 74 (Rajasthan)] dismissing the appeal of appellant insurance company under section 30 of Workmen's Compensation Act, 1923 (in short 'the Act').

(2.) In view of the limited controversy involved in this appeal it is not necessary to set out the facts of the case in detail. Suffice it to mention that one Bhagwan Singh was employed as khalasi on truck No. RSN 5900 owned by Hari Singh. On 23.3.1981, driver of the truck Tulcha Ram, took it to workshop for repairs. While it was being moved inside, the stone patties of the truck fell over him as a result of which he sustained grievous injuries. He was taken to Mahatma Gandhi Hospital, Jodhpur for treatment and he remained hospitalised for about four months. On 8.7.1981 he filed claim petition under rule 20 of the Workmen's Compensation Rules, 1924 before the Workmen's Compensation Commissioner, Jodhpur seeking compensation of Rs. 23,250 with costs, interest and penalty against said Hari Singh as well as the appellant insurance company with which the truck was insured. By award dated 16.2.1985 the Workmen's Compensation Commissioner awarded Rs. 25,200 as compensation with interest at the rate of 6 per cent from 26.3.1981. He also awarded Rs. 12,600 as penalty. The appeal preferred by the appellant having been dismissed by the learned single Judge, it has come in appeal to the Division Bench.

(3.) Mr. Arun Bhansali, learned counsel for the appellant submitted that insurance company does not dispute its liability by way of compensation as well as interest in terms of section 95 (2) of Motor Vehicles Act, 1939, but correctness of the award is challenged only as regards penalty. It was submitted that in Ved Prakash Garg v. Premi Devi, 1998 ACJ 1 (SC), Apex Court has categorically held that the insurance company is not liable to reimburse the penalty pursuant to award of the Workmen's Compensation Commissioner under the Act.