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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M.PRACHCHHAK
New India Assurance Co.Ltd. – Appellant
Versus
Kankuben Sakarabhai Rabari – 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 01.12.2006 passed by the learned Commissioner for Workmen's Compensation at Kutch- Gandhidham (hereinafter referred to as the "Commissioner") in Workmen's Compensation (Fatal) No.21 of 2006, whereby the learned Commissioner directed the insurance company to pay interest @ 12% on the amount of Rs.2,62,080/- for a period of 5.11.2005 to 5.5.2006 and amount of penalty of Rs.1,00,000/- within period of 30 days.
2. The short facts giving rise to present appeal are as under:-
2.1 The deceased Sakrabhai Merambhai Rabari was working with original opponent No.1 as helper. On 5.11.2005 he was died on duty. The widow of the deceased filed application before the Workmen's Commissioner for compensation under Workmen's Compensation Act. The insurance company had deposited an amount of Rs.2,62,080/- towards compensation without interest and penalty. Therefore, the widow of the deceased has prayed that opponents are liable to pay penalty and interest @ 12%, as the insurance company failed to deposit the amount of compensation within period of 30 days
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 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.
Penalties under the Workmen’s Compensation Act are the responsibility of the insurer, not the Insurance Company; interest awarded at 12% was justified.
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.
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 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 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 interest on compensation under the Employee’s Compensation Act, while the employer is responsible for penalty payments.
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