1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR : J U D G M E N T : D.B. CIVIL SPECIAL APPEAL NO.17/1997 (New India Insurance Co. Vs. Tirath Das & Ors.) Date of Judgment : 11.03.2010 P R E S E N T HON'BLE MR. JUSTICE A.M. KAPADIA HON'BLE MR. JUSTICE GOPAL KRISHAN VYAS Mr. Jagdish Vyas, for the appellant. Mr. S.G. Ojha } Mr. K.K. Bhati on behalf of Mr. D.K. Parihar }, for the respondents. Heard learned counsel for the parties. In this appeal filed under Section 18 of the Rajasthan High Court Ordinance, 1949, the New India Insurance Co. Ltd., has challenged the judgment dated 3.1.1996 passed by learned Single Judge in SB Civil Misc. Appeal No.299/1989 whereby the learned Single Judge enhanced the compensation so also held the Insurance Company liable for interest and penalty both. Learned counsel for the appellant while inviting attention of this 2 Court towards the judgment rendered by Hon'ble Apex Court in case of Kamla Chaturvedi Vs. National Insurance Co. & Ors., reported in MACD 2009 (SC) 4 argued that in the said judgment Hon'ble Apex Court held that the penalty part of the claim is to be paid by the employer and not by the Insurance Company. We have perused the impugned judgment dated 3.1.1996 as well as the judgment cited by learned counsel for the appellant. After perusing the judgment of Hon'ble Apex Court in case of Kamla Chaturvedi (supra), we are of the opinion that as per the verdict of Hon'ble Apex Court, the penalty is to be paid to the workman by the employer and not by the Insurance Company. In this view of the matter, the impugned judgment dated 3.1.1996 passed by learned Single Judge is modified to the extent of payment of penalty by the employer and not by the Insurance Company. However, it is made clear that the remaining part of the interest and enhanced compensation shall be deposited by the Insurance Company within a period of three months after adjusting the previous amount, which is already deposited by the Insurance Company. Further, the liability imposed upon the Insurance Company with regard to penalty is hereby shifted to the employer and employer is directed to 3 deposited the amount of penalty within a period of three months. It is made clear that if any amount of penalty is deposited by the employer, the same shall be adjusted and shall be paid to the claimant. Accordingly, this appeal is partly allowed. (GOPAL KRISHAN VYAS), J (A.M. KAPADIA), J arun