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Judgment
Thottathil B. Radhakrishnan, J.
1.This appeal, with application for condonation of delay of 172 days, is against an order of the Workmen''s Compensation Commissioner imposing a default penalty clause to the effect that if the payment is not made within one month, 30% of the compensation shall also be further paid as penalty. The appeal is also against the imposition of liability to pay interest from the date of accident. In so far as the question of interest is concerned, analysing the different decisions of the Hon''ble Supreme Court, this Court has held in MFA. 59/11 that interest is payable from the date of accident. Under such circumstances, we do not find any substantial question of law arising on that issue.
As regards the question of penalty, the amount due under the award has already been deposited. Under law, penalty cannot be imposed on the insurer. See Ved Prakash Garg Vs. Premi Devi and others, . Under such circumstances, the clause in the impugned order imposing penalty is only to be vacated.
The respondents belong to the marginal sector of the society. They are the dependents of an injured workman who is now no more. He died while working as a driver. The result of this appeal would be only that the penalty order would be vacated and the insurer''s appeal as regards the liability to pay interest will stand. That being so, we are of the view that the respondents need not be notified of this appeal. That will only result in further delay in their enjoying the fruits of the impugned order. Accordingly, we dispense with notice to the respondents with liberty to them to move for re-hearing of this appeal, if they are aggrieved by the terms of this order. With the aforesaid, the C.M. Application seeking condonation of delay is allowed. The impugned order is modified vacating the clause therein directing payment of penalty. The appeal is dismissed on all other grounds. The Commissioner is directed to release the amount lying in deposit, with interest, to the claimants at the earliest. The appeal ordered accordingly.
Communicate copy of this order to the Commissioner and the first respondent.