NEW INDIA ASSURANCE COMPANY LTD Vs. TUNIYA DEVI

JUDGEMENT

(1.) THIS appeal has been filed under Section 30 of the Workmen's Compensation Act, 1923 (hereinafter referred to as 'the Act') by the Insurance Company against part of the order dated 20.12.2000, passed by the Workmen's Compensation Commissioner, Hazaribagh, in Workmen's Compensation Case No. 20 of 2000, whereby interest and penalty is said to have been awarded.

(2.) IN the operative part of the impugned order the Insurance Company was directed to pay a sum of Rs. 1,64,170/- as compensation under the Act to the claimants within 60 days, failing which from the date of order, interest @ 12% would be payable thereon and if the compensation amount was not paid within 120 days, interest @ 18% would be payable thereon.

(3.) UNDER the provisions of Section 4A(3) of the Act, where the employer defaulted in paying compensation due under the Act within one month from the date it fell due, the Commissioner was empowered to direct the employer to pay the simple interest in addition to the amount of compensation in arrears (c) 12% per annum or at such higher rate not exceeding to the lending rates of any scheduled Bank as may be specified by the Central Government by notification in the Official Gazette, on the aforesaid amount due and further in absence of any justification for the delay, the Commissioner was also empowered to direct the employer to pay further sum not exceeding 50% of the amount of compensation by way of penalty. In the said provision it has also been provided that an order of payment of penalty cannot be passed without giving a reasonable opportunity to the employer to show cause why it should not be passed.