UNITED INDIA INSURANCE CO LTD Vs. SIRA KANWAR

JUDGEMENT

(1.) THE S. B. Civil Misc. Appeal No. 768 of 2005 has been referred to be considered by a Division Bench of this court by learned single Judge hearing the appeal. The learned single Judge after referring the catena of decisions had observed that the matter may be considered by Division Bench.

(2.) ISSUE raised in this case is whether the insurance company with whom the vehicle is insured and has undertaken liability to indemnify the insured against the liability arising under Workmen's Compensation Act is liable for penalty leviable under the Workmen's Compensation Act for default in payment of compensation in terms of the statutory provisions by the employer of the workman. Though, it has not been specifically mentioned in the order about the dichotomy existing between the different decisions of the courts necessitating such reference.

(3.) IT is stated by the learned counsel for the parties, who had argued before the learned single Judge that reference has been made of the aforesaid issue to the division Bench considering prima facie it to be a case of difference of opinion between two decisions of this court. On the one hand, the decisions rendered in oriental Insurance Co. Ltd. v. Vilas Devi, 2001 acj 950 (Rajasthan); Oriental Insurance co. Ltd. v. Momina Begum, 2002 ACJ 145 (Rajasthan); National Insurance Co. Ltd. v. Nema, D. B. Civil Special Appeal No. 47 of 2002 (Civil); decided on 25. 4. 2003, national Insurance Co. Ltd. v. Deva Ram, d. B. Civil Special Appeal No. 48 of 2002 (Civil); decided on 22. 5. 2003 and Oriental insurance Co. Ltd. v. Kaki Bai, 2005 RAR 494 (Rajasthan), holding that the penalty leviable upon the employer in breach of statutory provision cannot be considered to be part of compensation under Workmen's compensation Act. Following the decision of the Hon'ble Supreme Court in Ved prakash Garg v. Premi Devi, 1998 ACJ 1 (SC)and on the other hand the decision of the division Bench in United India Insurance co. Ltd. v. Roop Kanwar, 2007 ACJ 1394 (Rajasthan), wherein the court sustained the liability of insurance company to indemnify the employer in respect of penalty imposed under Workmen's Compensation act for delayed payment.