Oriental Fire And General Insurance Company Ltd., Bhagalpur v. Smt. Manorama Devi And Others

1. The petitioner, Oriental Fire and General Insurance Company, Ltd. (in short company), has come to this Court against an award given by the Presiding Officer, Labour Court, Bhagalpur, in favour of respondent 1. the heir of Mahendra Yadav, who was working as a khalasi on motor truck bearing No. B.H.P 9361 which met with an accident on 22 April, 1977, resulting-in the death of the said khalasi

2. The truck aforesaid was insured with the petitioner-company under the comprehensive insurance policy. Respondent 1 having failed to get any relief filed a case in the Labour Court under 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 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.

3. 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 2 in the Labour Court for such kind of compensation as the remedy lies under the provisions of the Insurance Act and the Motor Vehicles Act; and

(ii) the imposition of penalty in the circumstances of the case was not justified.

4. In course of the argument learned counsel for the petitioner did not press the first points, and in our opinion rightly. With respect to 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.

5. Having examined the facts and circumstances of the case we fell 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.

6. In the result, the application succeeds in part. The petitioner is further directed to give an 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.