IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M.PRACHCHHAK
New India Assurance Co. Ltd. – Appellant
Versus
Sagar @ Chandrakant Shri Hari Malik – Respondent
JUDGMENT :
HEMANT M. PRACHCHHAK, J.
1. Present appeal is filed by the appellant – New India Assurance Company Limited against the judgment and award dated 01.03.2007 passed by the learned Commissioner for Workmen's Compensation at Gandhidham-Kachchh in Workmen's Compensation Case (N.F.) No.11 of 2005, whereby the learned Commissioner has awarded compensation of Rs.2,41,920/- with interest @ 12% p.a. in favour of original claimant and also directed the appellant Insurance Company to pay 50% penalty to the tune of Rs.1,20,960/- alongwith other expenses including medical expenses to the tune of Rs.30,000/-.
2. The short facts giving rise to present appeal are that, the appellant is an Insurance Company and the respondent No.2 herein had obtained the W.C. Policy No. 212501/41/03/00044 for its worker. That, as per the claim petition, the claimant respondent No.1 herein was working with the insured as a Helper and he was earning Rs. 3500/- p.m. That, on 20.11.2004, while he was working on machine, he met with an accident and suffered serious injuries on his left leg, for which, he had claimed compensation by filing Workmen's Compensation Case being Workmen's Compensation Case (N.F.) No.11 o
New India Assurance Co. Ltd. vs. Harshadbhai Amrutbhai Modhiya and another
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 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.
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 ....
The court held that the liability for interest on compensation lies with the Insurance Company, affirming a statutory interest rate of 12% under the Workmen's Compensation Act if not paid within a mo....
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.
Insurance companies are not liable for interest or penalties under workmen's compensation policies unless explicitly stated in the policy; responsibility for such payments typically lies with the emp....
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.
The High Court's jurisdiction under Section 30 of the Workmen’s Compensation Act is confined to substantial questions of law, and it cannot re-evaluate factual findings made by the Commissioner.
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