Case Details: National Insurance Co. Ltd. vs. Harendra Singh @ Harendra Chaudhary - [2025] 180 taxmann.com 213 (HC-Delhi)
Judiciary and Counsel Details
- Dharmesh Sharma, J.
- Pankaj Seth, Adv. for the Appellant.
- R.K. Nain & Chandan Prajapati, Advs. for the Respondent.
Facts of the Case
In the instant case, the Respondent was employed as a driver of a truck owned by R2. The Truck was insured with the appellant/insurance company. While operating a vehicle, the respondent met with a road accident and sustained grievous injuries.
The Respondent asserted that he incurred substantial medical expenses and had become 100 per cent disabled for the purpose of his employment as a driver, resulting in a total loss of earning capacity.
Thereafter, the Respondent filed a claim petition before the Commissioner, Employees’ Compensation seeking compensation. The Commissioner allowed the claim for compensation, along with a penalty amount under section 4A(3)(b) of the Employees’ Compensation Act, 1923, and fastened liability for payment upon the shoulders of the appellant/insurance company.
It was noted that the insurer had undertaken liability for payment of interest and penalty, if any, under the Employees’ Compensation Act. Further, it was pertinent to note that the appellant/insurance company had charged an additional premium from the insured under the provisions of the Act.
High Court Held
The High Court held that, since the appellant/insurance company had charged an additional premium under the provisions of the Act, it could not escape its liability to pay compensation towards penalty under section 4A(3)(b) of the Act.
Further, since there was no evidence brought on record to show that the vehicle in question was not involved in the accident, the instant appeal was bereft of any merits and was to be dismissed. Therefore, the instant appeal was to be dismissed.
List of Cases Referred to
- Ved Prakash Garg v. Premi Devi 1997 taxmann.com 2061 (SC) (para 15)
- Oriental Fire and General Ins. Co. Ltd. v. Nani Bala 1987 ACJ 655 (Gau) (para 16)
- United India Insurance Co. Ltd. v. Roop Kanwar [1991] ACJ 74 (Raj) (para 17)
- New India Assurance Co. Ltd. v. Harshadbhai Amrutbhai Modhiya (2006) 5 SCC 192 (para 18)
- Raj Kumar v. Ajay Kumar (2011) 1 SCC 343 (para 24)
- Pratap Narain Singh Deo v. Srinivas Sabata (1976) 1 SCC 289 (para 26)
- National Insurance Co. Ltd. v. Ranjit Singh @ Rana 2009 SCC OnLine Del 3826 (para 27)
- State of Gujarat v. Rajendra Khodabhai Deshdia (1991) ACJ 638 (Guj) (para 27)
- Rayapati Venkateswar Rao v. Mantai Sambasiva Rao (2001) ACJ 2105 (para 27)
- G. Anjaneyulu v. Alla Seshi Reddy (2002) ACJ 1392 (para 27)
- National Insurance Co. Ltd. v. Hari Om 2011 SCC OnLine Del 328 (para 28)
- Mohan Soni v. Ram Avtar Tomar (2012) 2 SCC 267 (para 29)
- New India Assurance Co. Ltd. v. Mohd. Ajmer 2018 SCC OnLine Del 9158 (para 30)
- Reliance General Insurance Co. Ltd. v. Bikramjit Singh [FAO No. 24204 of 2016, dated 1-5-2018] (para 30)
- Raj Kumar v. Ashok Kumar & Bros. [FAO No. 498 of 2016, dated 19-4-2017] (para 30)
- Sri Chanappa Nagappa Muchalagoda v. D.M. New India Insurance (2020) 1 SCC 796 (para 31).
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