Oriental Fire and General Insurance Company Ltd. vs Manorama Devi and Others

The Petitioner Oriental Fire and General Insurance Company Limited (in short ''Company'') has come to this Court against an award given by the Presiding Officer, Labour Court, Bhagalpur, in favour of Respondent No. 1 the heir of Mahendra Yadav, who was working as a Khalasi on motor truck bearing No. BHP 9361 which met with an accident on 22.4.1977, resulting in the death of the said Khalasi.

The truck aforesaid was insured with the Petitioner Company under the comprehensive insurance policy. Respondent No. 1 having failed to get any relief filed a case in the Labour Court u/s 4(1) of the Workmen''s Compensation Act, 1923 and the Presiding Officer awarded a sum of Rs. 19,200/- as compensation to Respondent No. 1. Besides, he also awarded penalty of Rs. 8,000/- on account of delay in making payment by the Petitioner. This amount was to carry interest at the rate of 6 per cent per annum.

Two points were raised by the Learned Counsel for the Petitioner in challenge of this order, namely (i) No case could be filed by Respondent No. 2 in the Labour Court for such kind of compensation as the remedy lies under the provision of the Insurance Act and the Motor Vehicles Act and (ii) The imposition of penalty in the circumstances of the case was not justified.

In course of the argument Learned Counsel for the Petitioner did not press the first point and in our opinion rightly. With respect of the second point his case is that no claim was ever put before the Petitioner Company by the claimant and therefore the Petitioner cannot be saddled with the penalty which is leviable only in cases of unjustifiable delays.

Having examined the facts and circumstances of the case we feel persuaded to accept the contention of the Learned Counsel for the Petitioner and accordingly, the sum of Rs. 8,000/- awarded as penalty is hereby disallowed. The Petitioner Company, however, must deposit a sum of Rs. 19,200/- , which is the award given by the Labour Court and with interest fixed by the Labour Court in the Labour Court within one month from today in favour of the claimant.

In the result the application succeeds in part. The Petitioner is further directed to give information to the claimant by registered post about the fact of depositing the amount in question so as to enable him to withdraw the same from the Labour Court.