Kashibhai Rambhai Patel vs Shahabhai Somabhai Parmar and Others

Ratan Singh, conductor and the second driver who was working with the appellant, died on 11.12.94 in an accident when the trolly which was loaded with grass upturned while being driven by the son of the appellant. The claim under the Workmen's Compensation Act, 1923 was allowed by the Commissioner who also ordered interest and penalty against the Insurance Company as well. The controversy involved in this case is covered by the decision of this Court in Ved Prakash Garg Vs. Premi Devi and others, in which it was held that the Insurance Company, so far as the question of penalty is concerned, would not be liable under the provision of the Workmen's Compensation Act. The liability in respect of interest, however, could be burdened on the Insurance Company as also on the appellants. In view of the above, the appeal is disposed of with the observation that the Insurance Company, who is respondent No. 4 in this appeal, would not be liable for the amount of penalty, but so far as the interest is concerned, all the appellants as also respondent No. 4 would be liable. The amount of penalty would be recoverable from the appellants together with the amount of compensation if not already paid by the insurance Company (respondent No. 4).