AJAI LAMBA,J. - (1.) THE United India Fire and General Insurance Company Limited has come up in first appeal. Learned counsel for the appellant states that although it has not been specified, however, the penalty is being recovered from the insurer in execution proceedings.
(2.) AT the time of admission of the appeal, the matter was admitted only against respondents Nos. 2 and 3 on the limited question of liability of paying the penalty. In the light of law as laid down by the Hon'ble Supreme Court of India in Ved Parkash Garg v. Premi Devi and others, 1997(4) RCR(Civil) 309 : 1997(4) SCT 541 : (1997-3) 137 PLR 606 (SC), the Insurance Company cannot be held liable to reimburse the additional amount of compensation by way of penalty and the same would be recoverable from the insured.
(3.) IN view of the law laid down in Ved Parkash Garg's case (supra), the appeal is allowed to the extent that the penalty imposed vide the impugned award shall be recoverable from the insured and not the insurer. Appeal allowed.;