MAMTA TRAVELS Vs. DHANU RAJKWAR

JUDGEMENT

(1.) This appeal has been preferred by the owner aggrieved by an order dated 31.1.2004 passed by the Commissioner for Workmen's Compensation, Labour Court, Satna in Case No. 23/W.C. Act Non-Fatal of 2002.

(2.) The facts of the case are that Dhanu Raikwar was employed as driver by Mamta Travels. On 9.1.2002 while he was driving the bus No. MP 19-D 2837, it turned turtle, owing to which driver sustained serious injuries and incurred 100 per cent disability. Learned Commissioner for Workmen's Compensation has awarded compensation of Rs. 3,03,880. Penalty of Rs. 10,000 has been fastened upon the owner, Mamta Travels. Liability of interest has also been saddled on the owner. Insurer has been exonerated from making the payment of penalty and interest. Consequently, this appeal has been preferred by the owner submitting that liability ought to have been fastened on the insurer as intimation was given well in advance to the insurer and insurer has made the payment towards damage of the vehicle which occurred in the accident in question. Consequently, finding recorded by the Commissioner for Workmen's Compensation that insurer was not informed timely by the owner as to the accident is incorrect, hence, the liability to make payment of penalty and interest be saddled upon the insurer also.

(3.) Mr. H.C. Kohli, learned Counsel for appellant owner, has submitted that considering the policy which did not exclude the liability of the insurer for payment of penalty and interest under the Workmen's Compensation Act; there was no contracting out of the aforesaid liability. On the other hand, the premium was realised by the insurer to cover the risk of the driver, owner and two workmen, thus, the liability ought to have been saddled apart from owner on insurer also to make payment of penalty and interest. He has further submitted that timely information was given, consequently payment of damage to the vehicle was made by the insurer, thus, the order passed by the Commissioner for Workmen's Compensation exonerating insurer from payment of penalty and interest be set aside.