1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No. 636 of 1996 Date of Decision: 07.07.2011 *** National Insurance Company Limited .. Appellant VS. Sube Singh & Ors. .. Respondents CORAM: HON'BLE MR. JUSTICE ARVIND KUMAR, Present:- Mr. Harsh Aggarwal, Advocate None for the respondents. *** ARVIND KUMAR, J. The appellant is laying challenge to the award dated 31.10.1995 passed by the learned Commissioner under Workmen's Compensation Act, Hisar Circle by virtue of which the claim filed by respondents No.1 and 2, on account of death of Sukhbir Singh, working as driver with respondent No.3, which was insured with the appellant, has been allowed and appellant Insurance Company has been directed to pay Rs.88548/- as compensation along with 6% interest per annum from the date of filing of claim i.e. 13.9.1991 till the date of deposit. Besides a penalty of Rs.25000/- has been foisted upon the appellant. On 30.8.1996 while admitting the instant appeal, the same was ordered to be heard with FAO No. 480 of 1992. Learned counsel has pointed out that the said appeal has already been disposed of by this Court vide order dated 31.1.2011, however, the instant appeal inadvertently could not be listed along with that appeal. I have gone through the impugned award and find no justification to interfere with the same, so far as quantum of compensation and award of interest thereupon and the liability of the appellant Insurance 2 Company to satisfy the award, is concerned. However, so far as imposition of penalty of Rs.25,000/-, upon the Insurance Company is concerned, the same is not sustainable. A perusal of decision rendered by this Court in FAO No.480 of 1992, decided on 31.1.2011, reveals that while relying upon the decision in the case of Ved Parkash Garg Vs. Premi Devi & Ors. 1997 (8) Supreme Court Cases 1, wherein it has been observed that the insurance company cannot be made liable to reimburse the penalty imposed upon the employer, this Court set aside the levy of penalty imposed upon the Insurance Company. Therefore, in view of the discussion above, the impugned award is modified and the insurance company is exonerated of its liability to pay the penalty amount of Rs.25,000/-. The instant appeal stands disposed of accordingly. However, it is made clear that there shall be no bar for the claimants to seek the amount of penalty, as imposed by the Tribunal below, from the employer. (ARVIND KUMAR) JUDGE July 07,2011 Jiten