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2021 Supreme(Guj) 811

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, J.
Gopal Raman Nayar – Petitioner
Versus
Vanaben Dineshkumar Bhuriya – Respondent
Special Civil Application Nos. 5009 of 2020, 5865 of 2019, Misc. Civil Application (For Direction) No. 2 of 2019
Decided On : 20-09-2021

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Yogi K. Gadhia.
For the Respondent: Mr. Karna H. Dhomse.

Point of Law - Perusal of the provisions of Section 4A of the WC Act reveals that the employer is fastened with the liability of payment of compensation and in the event , the same is not paid, a penalty of 50% prescribed under Section 4A(3) of the WC Act. There is no stipulation for granting of interest on the penalty amount in the Rule 4A.

Headnote:

Employee’s Compensation Act, 1923 - Section 4A - Workmen Compensation Act, 1923 - Section 4A, 4A(3) - Compensation to be paid when due and penalty for default – Victim was working with petitioner as a Driver on Truck and he met with an accident, due to which he passed away - At relevant time, as petitioner had insurance, petitioner informed insurance company about same and was under a bona fide impression that claim will be settled.

Findings of the Court - Provisions of Section 4A of WC Act reveals that employer is fastened with liability of payment of compensation and in event , same is not paid, a penalty of 50% prescribed under Section 4A(3) of WC Act. There is no stipulation for granting of interest on penalty amount in Rule 4A - Impugned order and award is sustained, same would set a bad precedent as Court has awarded interest on penalty which is not prescribed under provisions of law - Thus, order, by which the interest on penalty, is passed is de hors Rules - As respondent workman has already agreed for waiver of interest on penalty, impugned order with regard to payment of 50% of penalty is not interfered - By order passed in Special Civil Application, petitioner has already deposited an amount of before Registry of this Court - Impugned order rejecting application for condonation of delay is set aside - However, in order to lay-quiches to entire litigation, aforementioned order is passed with consent of advocates appearing for respective parties - Amount, which is already deposited pursuant to recovery certificate and same is ordered to be paid to respondent-workman as per directions of Court, implementation of recovery certificate will not survive.

Result- Writ petition disposed of.

JUDGMENT :

A.S. SUPEHIA, J.

1. With the consent of the learned advocates appearing for the respective parties, the present writ petition is taken up for final hearing.

2. Rule. Learned advocate Mr. Karna Dhomse waives service of notice of rule for the respondent nos. 1 and 2.

3. In the present writ petition, the petitioner inter-alia has prayed for the following relief:

“8(A) This Hon’ble Court may be pleased to issue an appropriate writ, order and/or direction to quash and set aside the order passed by the Ld. Commissioner, Vadodara in Misc. Application No. 04/2019 dated 28.11.2019.”

4. The brief facts of the case are as under:

4.1. Initially the claimant had filed WC Application No. 34 of 2013 against the petitioner herein, inter-alia, stating that the victim was working with the petitioner as a Driver on Truck No. GJ-06-W-8145 and he met with an accident on 19.05.2013, due to which he passed away. At the relevant time, as the petitioner had insurance, the petitioner informed the insurance company about the same and was under a bona fide impression that the claim will be settled. Moreover, the petitioner also gave all the necessary monetary and other help to the original claimant. In the workman compensation application, the claimant has joined the present applicant in his individual capacity, which could not have been done in the facts of the case. It is the case of the petitioner that he had received a notice of the WC Application, but he was under a bona fide impression that as the insurance policy is taken, the same would be taken care of. It is in this manner that an ex-parte judgment qua the petitioner came to be passed in favour of the original claimant, whereby the Commissioner held the petitioner and Insurance-Company jointly and severally liable for compensation of Rs. 8,73,880/- along with 12% interest and Rs. 5,000/- towards funeral expenses and Rs. 2,500/- towards cost. The said part is already complied with by the Insurance Company. The Commissioner further directed the present petitioner to deposit 50% penalty by way of the said judgment.

4.2. The Insurance Company has already deposited the compensation along with interest before the Commissioner. However, the claimant preferred WC (Misc.) App No. 40/2016, inter-alia, claiming 50% penalty to the tune of Rs. 4,36,940/- interest of Rs. 1,61,667.80/- funeral expenses at Rs. 5,000/- cost at Rs. 2,500/- and Rs. 1000/- towards the cost of Misc. Application. The Commissioner allowed the said application in favour of the claimant and directed that the recovery certificate be issued against the petitioner to the tune of Rs. 4,36,940/- along with 12% interest from the date of filing of Misc. Application along with Rs. 7,500/- towards funeral expenses and cost.

4.3. Thereafter, the claimant filed Review Application No. 02 of 2018 in Misc. Application No. 40 of 2016 inter-alia praying that he is entitled to interest on penalty from the date of filing of the main WC Application and not from the date of filing of the Misc. Application and requested for necessary changes in the order. The Commissioner allowed the said application and directed for issuance of recovery certificate to the tune of Rs. 4,36,940/- along with 12% interest from the date of filing of WC Application No. 34/2013 and Rs. 7,500/- towards funeral expenses and cost.

5. Learned advocate Mr. Yogi Gadhia appearing for the petitioner has submitted that the petitioner came to know about the above orders only when he received letter from Taluka Development Officer (TDO), Vadodara inter-alia directing the petitioner to deposit the amount vide letter dated 23.01.2019. The petitioner thereafter filed the delay condonation application being Misc. Application No. 04/2019 on 05.02.2019. He has submitted that after that, the petitioner approached this Court by way of filing Special Civil Application No. 5865 of 2019 challenging the recovery certificate and letters issued by TDO, Vadodara and the Court vide its order dated 20.03.

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