Rajasthan High Court - Jaipur
Oriental Insurance Co. Ltd. vs Chandri And Ors. on 26 August, 1994
Equivalent citations: 2(1996)ACC458
JUDGMENT R.S. Kejriwal, J.
1. The Workmen's Compensation Commissioner, Bundi, vide his award dated 3.2.1993, awarded a sum of Rs. 1,16,784/- to the claimants along with penalty amd interest, under Section 4A of the Workmen's Compensation Act. This award has been challenged by the appellant in this appeal.
2. The only submission of the Counsel for the appellant is that the Insurance Company cannot be made liable for interest and penalty.
3. This question has been decided by this Court in its judgments in United India Insurance Co. Ltd. v. Roop Kanwar 1991 ACJ 74 (Rajasthan) and Madan Gopal v. Anandi Lal 1992 ACJ 543 : II (1992) ACC 427 (Rajasthan).
4. In Madan Gopal v. Anandi Lal 1992 ACJ 543 (Rajasthan), this Court held as under:
The composite reading of the provisions of the Workmen's Compensation Act with Section 95, 96 and 110-B of the Motor Vehicles Act makes it clear that in all the motor accident cases, it is the statutory duty of the Insurance Company to satisfy the award as the judgment-debtor and it will not made any difference whether the award is passed under the Workmen's Compensation Act or under the provisions of the Motor Vehicles Act and whether it relates to the interest or penalty or to the compensation alone. If the liability of the Insurance Company arises for the principle amount and if the same is not deposited or paid within one month from the date of the accident, as required under Section 4A(3) of the Act, then the insurer also incurs the liability to pay the penalty and interest and the liability envisaged is the whole liability including the interest and the penalty.
5. The argument raised by the Counsel for the appellant is covered by the aforesaid decision of this Court. Under these circumstances, there is no force in this appeal and the same is dismissed.