The liability of an insurance company for interest and penalty under Section 4-A(3) of the Workmen's Compensation Act, 1923 is contractual and cannot be imposed in the absence of a specific provision in the insurance policy.

JUDGMENT :

Kamlesh Sharma, J.

1. These three appeals, F.A.O. (WCA) Nos. 106 and 107 of 1993 and 337 of 1995 are being disposed of by a common judgment as the same question of law is involved in all of them. The question of law is:

Whether the insurance company is liable to indemnify the insured for the penalty and interest awarded against him under Sub-section (3) of Section 4-A of the Workmen's Compensation Act, 1923 (hereinafter called 'the Act')?

2. In F.A.O. (WCA) No. 106 of 1993 the claimants-respondents are parents of the deceased Shafiq Mohammad, who was employed as driver on Swaraj Mazda truck No. HPS 7486 owned by respondent No. 3, Pradeep Kumar. The said truck met with an accident in the early hours on 6.12.1989 at a place called Uli, near Sunni, Tehsil Sunni, District Shimla, when it was transporting bricks from Chandigarh to Sunni, in which Shafiq Mohammad driver and one labourer Prem Lal died. In F.A.O. (WCA) No. 107 of 1993 parents of the deceased Prem Lal are the respondents-claimants. On the evidence on record the Commissioner under the Workmen's Compensation Act, has granted Rs. 88,548/- as compensation with interest at the rate of 6 per cent per annum from the date of accident, i.e., 6.12.1989 and penalty at the rate of 30 per cent on the award money amounting to Rs. 26,562/- to the parents of Shafiq Mohammad payable by respondent Pradeep Kumar, the owner of the truck and United India Insurance Co. Ltd., the appellant. Similarly, in F.A.O. No. 107 of 1993, on the basis of evidence of age and wages, the parents of deceased Prem Lal have been awarded compensation of Rs. 76,885/- with interest at the rate of 6 per cent per annum from the date of accident and penalty at the rate of 30 per cent of the award amount which comes to Rs. 23,064/- against respondent Pradeep Kumar, the owner of the truck and United India Insurance Co. Ltd., the appellant.

3. In F.A.O. (WCA) No. 337 of 1995 the widow and minor daughters are the respondents-claimants, whose husband/father deceased Ramesh Chand was driver of truck No. HP-07-1187, which met with an accident and fell down in a nala on 21.10.1992 while being driven on Sunni-Tattapani road near a place known as Bahal, as a result of which said Ramesh Chand died. On the material on record produced by the parties, an amount of Rs. 87,400/- has been awarded as compensation with interest at the rate of 6 per cent per annum and 20 per cent penalty on the award amount amounting to Rs. 17,480/-.

4. In F.A.O. (WCA) Nos. 106 and 107 of 1993 the claim petitions were filed on 21.5.1990, whereas the accident had taken place on 6.12.1989, and there is no material on record whether respondent Pradeep Kumar, the owner of the truck had made any payment in discharge of his liability before filing of the claim petitions or thereafter. Rather his stand in the reply to the claim petition is that he is not liable to pay any compensation to the petitioners as claimed and it is United India Insurance Co. Ltd. which is liable to pay as the truck was insured with it, though he has admitted that deceased Shafiq Mohammad and Prem Lai were his employees as driver and conductor on truck No. HPS 7486 and he had received the intimation of accident and of their death immediately after the accident. The United India Insurance Co. Ltd. took number of preliminary objections and denied its liability in the absence of particulars of insurance policy.

5. So far F.A.O. (WCA) No. 337 of 1995 is concerned, respondent Bhagat Ram, the owner of truck No. HP-07-1187 also took the similar stand that the claim petition is not maintainable against him because the truck was insured with the Oriental Insurance Co. Ltd. but he has admitted that deceased Ramesh Chand was employed as driver on the truck at monthly salary of Rs. 1,500/- plus Rs. 30 as daily allowance. He had also received the intimation of the death of Ramesh Chand after the accident. In this case claim petition was filed on 7.1.1994, whereas the accident had taken place