Sheela Devi vs Oriental Insurance Company Limited 2025 INSC 516 -Employees’ Compensation Act
Employees’ Compensation Act, 1923 - Section 4A - The necessary pre-requisite for imposing the statutory penalty under Section 4A(3)(b) is that the employer must default in payment of compensation due and the Commissioner must reach the conclusion that the non- payment is not justifiable (Para 13) - The statutory penalty which is imposed upon the employer under Section 4A(3)(b) of the Act is not to be indemnified by the Insurer - Insurer is liable to indemnify the owner only for the compensation along with interest thereon and not the penalty imposed on the employer for default in payment of amount within one month from the date of incident - Referred to Ved Prakash Garg Vs. Premi Devi (1997) 8 SCC 1 and Ferro Alloys Ltd. v. Mahavir Mahto, (2002) 9 SCC 450. (Para 10)
