Bombay High Court in Chief Executive Officer & Anr. vs Smt. Suraiyya Rafik Khalifa & Ors. [First Appeal No. 3517 of 2022] while examining the issue as to whether principal employer is to be held liable for interest and penalty for delayed payment of compensation to the deceased workman of the contractor in terms of Section 12 of the Employees’ Compensations Act, 1923 (“ECA”) held that for failure to comply with statutory obligation on the part of the employer he can be saddled with additional liability to pay interest and penalty, however the principal employer, who is made liable to pay compensation by extended arm under Section 12 of the ECA cannot be mulcted with the liability to pay the interest and penalty.
Also read: Kerala Pathological labs are covered under ESI Act from the date of notification: SC
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