1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR First Appeal No.1371/2008 ............................................................................................................................................................................................. Office Notes, Office Memoranda of Coram, appearances, Court's orders Court's or Judge's order of directions and Registrar's orders ................................................................................................................................................................... Mr. S.K. Pardhy, Advocate for the appellant. .......... Coram : B.P. Dharmadhikari, J. Dated : 11 th February, 2009. The matter was placed before this Court on 9.2.2009 and after informing the learned counsel for the appellant that the insurance company cannot be asked to pay the amount of penalty under section 4(A) of the Workmen's Compensation Act, 1923, the matter had been adjourned to today. Advocate Pardhy for the appellant relied upon the judgment of Hon'ble Apex Court reported at AIR 1997 SC 3854 Ved Prakash Gug .vrs. Premiden to contend that the issue stand concluded and hence the Commissioner could not have directed insurance company to pay the compensation. He further states that as per the direction of the Commissioner under workmen's compensation act, entire amount of compensation along with the interest and penalty 2 is recovered from the Insurance Company by respondent nos.1 to 7. He states that insurance company should be permitted to recover the amount from respondent no.8. Advocate Meghe with Advocate Wairagade argues that the accident has taken place in the course of employment. As such insurance company is liable to pay not only interest but also penalty. He contend that the judgment mentioned above has no application as the appeal is under section 30 of the Workmen's Compensation Act. In the present facts, it is clear that the question : Whether the Commissioner under workmen's compensation act could have directed to recover 50 % penalty from insurance company is the substantial question of law arising for consideration. In view of the judgment of the Hon'ble Apex Court mentioned above, it is clear that the amount of penalty cannot be directed to be recovered from the Insurance Company and it is the vehicle owner who has to pay the said amount to the claimants. The direction given by the Commissioner under workmen's compensation act in operative part clause 4 of it judgment is, therefore, unsustainable. Same is accordingly modified and the present respondent no.8 (NA No.1 in WCC No.12/93) is 3 directed to pay the said amount of penalty to the claimants. As the claimants have recovered the amount of penalty from the present appellant, the appellant is permitted to recover the same in accordance with law from respondent no.8. Appeal is allowed to that extent only. In the circumstances, no order as to costs. JUDGE Gulande