NEW INDIA ASSURANCE CO LTD Vs. NAMGAR BHOJGAR GUSAI
LAWS(GJH)-2008-5-159
HIGH COURT OF GUJARAT
Decided on May 09,2008

NEW INDIA ASSURANCE CO.LTD Appellant
VERSUS
NAMGAR BHOJGAR GUSAI Respondents

JUDGEMENT

- (1.) PRESENT appeal under sec. 30 of the Workmen's Compensation Act, 1923 ("the Act" for short) is filed by the appellant original opponent No. 2 the New India Assurance Co. Ltd. challenging the Judgement and Award dtd. 23/11/1995 passed by the learned Commissioner under Act, Labour Court, Rajkot in Workmen's Compensation (Fatal) Case No. 100 of 1993, in so far as directing the appellant Insurance Company to pay penalty to the extent of 50% of the compensation i. e. 44,800=00 and pay interest at the rate of 12% per annum on the amount of compensation from the date of claim application.
(2.) AS the controversy raised in the present appeal is in narrow compass, this Court is not narrating the facts in detail.
(3.) MR. RAVANI, learned advocate appearing on behalf of the appellant has vehemently submitted that the learned Commissioner has materially erred in directing the appellant Insurance Company to pay 50% penalty. It is submitted that as held by the Hon'ble Supreme Court in the case of Ved Prakash Garg Vs. Premi Devi and others, reported in AIR 1997 S. C. 3854, Insurance Company cannot be held liable to pay penalty as provided under sec. 4-A (3) (b) of the Act. He has also further submitted that as the accident has taken place in the year 1990 i. e. prior to the Amendment Act of 1996, interest on the delayed payment of compensation would be 6% per annum and therefore, the learned Commissioner has committed an error in awarding interest at the rate of 12% per annum. He has also relied upon the decision of the Hon'ble Supreme Court in the case of Kerala Electricity Board and another Vs. Valsala K. , reported in AIR 1999 S. C. 3502. No other submissions have been made by the learned advocate appearing on behalf of the appellant.;


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