JUDGEMENT
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(1.) Challenge in the present appeal is to the order of imposition of
penalty of ' 10,000/-.
(2.) Learned counsel for the appellant submitted that in terms of
judgment of Hon'ble the Supreme Court in Ved Prakash Garg vs Premi Devi and others, 1997 117 PunLR 606, the insurance company is not liable for payment of
penalty. It is the employer who is to bear the burden of penalty. The insurance
company is only liable to pay the amount of compensation awarded by the
Commissioner under the Workmen's Compensation Act, Ambala (for short, 'the
Commissioner').
Learned counsel for the respondent could not dispute the aforesaid
proposition of law laid down by Hon'ble the Supreme Court in Ved Prakash Garg's
case (supra), wherein it was held that the insurance company is not liable to bear
the burden of penalty as imposed by the Commissioner under Section 4A (3) (b) of
the Workmen's Compensation Act, 1923 and it is the liability of the employer only.
As the legal issue which is involved in the present appeal is squarely
covered by judgment of Hon'ble the Supreme Court in Ved Prakash Garg's case
(supra), the impugned order passed by the Commissioner is modified to the extent
that the amount awarded by the Commissioner on account of penalty, the liability
shall be solely of the employer and not joint and several with the insurance
company. The claimant shall be entitled to recover the penalty amount from the
employer, if not already recovered.
Disposed of.;
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