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Head Note

Motor Vehicles Act,1988  - Section 147 , Constitution of India, 1950  - Article 142 , Workmens Compensation Act, 1923  - Section 4

Compensation - The point falling for consideration is that even if the vehicle had a valid insurance policy, whether the first respondent- insurance company is liable to indemnify the owner of the vehicle for death of a person who was employed by him in another vehicle - Considering the facts of the case, both the vehicles were parked in the same space and it can be safely stated that the deceased cleaner was filling the water in the radiator of vehicle no.GJ-3U-5391 only on the direction of the employer and thus the cleaner was working in the course of employment - In exercise of extra-ordinary jurisdiction under Article 142 of the Constitution of India, it is appropriate to direct the first respondent-insurance company to indemnify the appellant for the death of deceased.

Workmens Compensation Act, 1923  - Section 4-A

Commissioner awarded compensation of Rs. 6,42,921/- along with 10% penalty and 6% interest per annum - Where any employer commits default in paying the compensation due under the Act within one month from the date it fell due, the Commissioner shall direct the employer to pay simple interest thereon at the rate of 12% per annum or at such higher rate not exceeding maximum of the lending rates of any scheduled bank as may be specified by the Central Government - As per Section 4-A (3)(b), the Commissioner shall direct the employer to pay further sum not exceeding 50% of such amount by way of penalty - The legal representatives of the deceased employee are thus entitled to the statutory interest at the rate of 12% and penalty not exceeding 50% of the amount of compensation - The Commissioner for Workmen's Compensation has awarded only 6% interest and 10% penalty as against the statutory entitlement of the dependents of the deceased employee in terms of Section 4-A(3) of the Act - Having regard to the passage of time and in the interest of justice, statutory rate of penalty i.e. 15% is to be ordered in addition to the statutory interest payable at the rate of 12% per annum.

Topic(s)-MACT - Liability of insurer liable

Important Decision(s)- If the vehicle had a valid insurance policy, insurance company is liable to indemnify the owner of the vehicle for death of a person who was employed by him in another vehicle.