^ HIGH COURT OF CHHATTISGARH AT BILASPUR M.A. N0. 688 QF 2006 APPELLANT: ChiefNagar Palika Parishad / Nagar Panchayat, ttarough ChiefMunicipal Officer, Ambagarh Chowki, District Rajnandgaon (CG) VERSUS RESPONDENTS Smt. Janfcibai, widow ofMehetar and others. POST FOR JUDGMENT ON^Z-04-20B7 Sd/- Dhirendra Mishra Judge o^ HIGH COV8.1 OF CHHATTISGARH AT BILASPUR M.A. N0.688 OF 2006 APPELLANT: NON AFPLICANT N0.1 ChiefN^ar PalikaParisha4 / Nagar Panchayat, through ChiefMuuicipal Officer, Amb^arh Chowki, District Rajnandgaon (CG) VERSUS RESPONDENTS APPLICANTNO.l APPLICANTN0.2 APPLICANTNO. 3 APPLICANTNO. 4 NON-APPLICANTN0,2 s. Smt. Jankibai, widow ofMehetar Ram, Nishad, aged about 40 years. Ramcfaand Nishad, s/o Mehtar Ram Nishad, aged about 21 years. Lakhanlal Nishad, s/o Mehtar Ram Nishad, aged about 17 years. Smt. Mangani Bai, widow of Pesluram Nishad, aged about 61 years. Respondent No, 3 minor tfarough her Quardian at Litem, Mother, non- appticEuit No.l Smt. Jankibai Respondent No.1,3 and 4 R/o Villi^e Jadutola, Tahsil Ambagarh Chovdsi, District Rajnandgaon (C.G.) Rsspondent No.2 R/o Patelpara, Durga Chowk, Behind Civil Court, Pump House, Ambagarh Chowki, District Rajnandgaon (C.G.) Oriental Insurance Company Limited, Registered OfGce, Oriental House, B.P.No. 70377, A 25/27, AsafAliRoad,NewDelhi, 110002, Division OfBee Tfarough Divisional Manager, MalyiyaNagar, Durg, Tahsii and District Durg (C.G.) Present: Shri Alok Bakshi, counsel forthe appellant. Shri Pankaj Agrawal, counsel for respondents No. 1 to 4. 'f'1-] JUDGMENT (Ddiva-ed on23>Aprfl 20U7) DHIRENDRA MISHRA. J With the consent ofthe parties the matter is heard finalty. Tliis appeal under Section 30 ofthe Woritmeu's Conipensation Act, 1923 (For brevity 'the Act') is direeted against the imposition of peaalty vide award dated 16.10.2006 passed by Labour Court District, Rajnandgaon, Commissioner for Workmen's Compensatioii Act, (hereinafter referred to as 'Tribunal') vAereby theTribuaalhasawardedasum ofRs.l,82,656/-tothelegalrepresentativesofthe deceased employee Mshtairam Nishad and also awarded a sum ofRs.54.797/- as penalty at therrte ofRs.30I>'<x ofthe compensation Eimount. Respondents No. 1 to 4 filed application for compensation for the death of Mehtan-am Nishad wfao was employee ofthe appellaut, with the Etvennent thst he died on 22.2.2004 during the course ofhis employment. TTie deceassd was driver and he was piying the tractor flAich was insured with respondent No.5 for the relevant period. After considering the evidence available on record, the Tribunal hetd that respondents No.l to 4/claimants were entitled to receive compensation of Rs.l,82,6S6/- with interest ^ the rate of 6% per annum from the dats ofthe ^)plication and the non-applicaats were held jointly tiable. However, swce the non-^plicant No.2/Insurance Company had insured the vehicle for the relevaut time; liAility of payment of compensation was fastened upon regpondent.No. 5/non-applicant No.2. In addition to ths above anount a sum ofRs.54,797/- was also awardedas penalty to the applicants/claimants. However, the appellaitt. was made liable to pay the amount ofpenalty on the groundthat the appellant did not make any efforts to ensure that the amouat ofcompens^ion due to the q)plicantg was paid to them •wbeait fell due. Leamed counsel for the appellant submits that sinee the tractor in question was insured with respondent No.5/noh-^)plicant No. 2, the Tribunal was not justified in saddling with the liabilfty ofpayment of peualty upon ths ^»pellant. He further argued that bdbre imposing the above peaalty, ao notice as contemplated in proviso to Section 4-A (3) (b) ofthe Act was issued andtw these reasons the impugned awardto the extent ofimposition ofpenatty and making the appellaat liahle to pay the amount ofpenalty, cannot be sustained. r}^ On the other hand, leamed counsel for the respondeiits 1 to 4 submitted that taking into consideration the overall conduct of the qipellant/employer, the Tribunal was constrained to impose penalty under Sedion 4-A (3)(b) ofthe Act and the same does not call for any intsrfa-ence. I have- heard leamed counsel for the parties and perused the material available on record. From psrusal of the record, it is found tbst accident took place on 22.2.2004. The appellant has admitted that on the date of acddeiit, (teceased Mehtan-am was employed as temporary driver by them, who died in the accident. However, the appeUaset (Bd not make any effort to ensure that the ^iplicants/ciaimants were paid compensation which was due to them as per provision ofthe Act nor any anount was deposited with the Tribunal or paid to them within a month ofthe accident wheii tbe amount fell due to them. On the contrary, the appellant in thsir reply dated 30.8.2005 contested the claim ofthe applicants without depositing any sum towards compensation or without making any effort to ensure that the insurer pays the cunpensation amount to the legal heirs ofthe deceased employee, by taking basele^ and unreasonable plea to avoid rigfatful compensation to the poor legal heirs. Since the default is attributable exclusively to the employee in belated payinent ofcompensation to the appiicaata, peiialty has rigiitly not been imposed on tbe Insurance Company. So far as imposition of penalty without issuing show cause notice to the appellant is concemed, from perusal of the record it is found tha accident occun-ed during the course ofanployment ofthe deceased and even then instead of depositing the compensatioa within a month, the appellant raised basel?ss objections and thereby willfiilly delaysd thep%'ment vAich was due to the legal heirs of the deceased employee. Tbs absence of show cause notice before ymposing penatty shall not vitiate the imposition of penalty. The provisions for payment of interest and penalty has been .enacted vritb a view to deter the employer from taking baseless and unreasonable pleas to avoid rightful claim of eompensalion to the poor worianen. In the result, ths appeal being devojd ofsubstance is liable to be dismissed and is hereby dismissed. — Sd/- Dhirendra Mishra Judge 1