Penalty for Delayed Compensation due to Employer’s Default Cannot Be Shifted to Insurance Company: SC

New India Assurance Co. Ltd. Vs Rekha Chaudhary And Others (Supreme Court of India)

The appeal before the Supreme Court was confined to a limited issue: whether the Delhi High Court erred in fastening liability on the Insurance Company to pay the penalty imposed under Section 4A(3)(b) of the Employees’ Compensation Act, 1923 (EC Act), in addition to compensation and interest.

The claim arose from the death of Shri Sandeep, a commercial driver employed by Respondent No. 4. He collapsed while driving on 13.02.2017 and was declared dead. His legal heirs filed a claim under th

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