New India Assurance Co Ltd vs Rekha Chaudhary

The Supreme Court examined the liability of an insurance company under Section 4A(3)(b) of the Employees Compensation Act, 1923, specifically whether the insurer is liable to pay the penalty imposed in addition to compensation and interest. The Court considered the scope of the penalty provision and the relationship between the employer and the insurer. It held that the insurance company cannot be fastened with the penalty liability under the said provision, which is primarily directed at the employer. Consequently, the penalty imposed on the insurance company by the High Court was set aside.