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VENKATA JYOTHIRMAI PRATAPA
United Indian Insurance Company Limited – Appellant
Versus
Mundeddu Dhanalakshmi – Respondent
JUDGMENT :
This Civil Miscellaneous Appeal is filed under Section 30 of the Workmen Compensation Act, 1923 (in short ‘the Act’) against the impugned final notice dated 22.10.2007 issued in W.C.No.11 of 1992 on the file of the Commissioner for Workmen’s Compensation (DCL), Guntur.
Parties before the learned Commissioner:
2. The appellant herein was the Opposite Party No.2/Insurance Company, the respondents Nos. 1 to 3 herein were the applicants and the respondent No.4 herein was the Opposite Party No.1/owner of the offending vehicle before the learned Commissioner. For the sake of convenience and understanding, the parties are referred to as they were arrayed before the learned Commissioner.
3. Case of the Applicants
Applicants are the wife, son and daughter of the deceased Venkata Reddy, who died in the course of employment on 28.02.1980 while working as cleaner on the oil tanker bearing No. AP 7U 0369 of Mr. KasiViswanadham (O.P.No.1). Against their claim of Rs.60,734.80/-, the learned Commissioner granted Rs.43,469/- and directed Opposite Parties to deposit the amount within 30 days vide Order dated 15.09.1995.
4. Events post award:
The main legal point established in the judgment is that the penalty under Section 4-A(3)(b) of the Workmen's Compensation Act is the liability of the employer and not the insurance company.
Insurance companies are liable for interest on compensation but not for penalties due to employer violations under the Workmen's Compensation Act.
The appeal court can only intervene on substantial questions of law, preserving the Commissioner’s fact-finding authority while holding the employer liable for compensation penalties, with insurance ....
Liability for penalty under the Workmen's Compensation Act rests on the employer, not the insurance company, and interests awarded are also subject to statutory amendments.
Penalties under the Workmen’s Compensation Act are the responsibility of the insurer, not the Insurance Company; interest awarded at 12% was justified.
The insurance company is not liable for interest payments under the Workmen's Compensation Act; liability rests with the employer to pay compensation and associated interest.
The insurance company is liable for compensation and penalty under the Workmen's Compensation Act, with the court's jurisdiction limited to substantial legal questions, not factual re-evaluation.
The Insurance Company is liable for interest on compensation under the Employee’s Compensation Act, while the employer is responsible for penalty payments.
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