1 FAO-1238-2017 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO-1238-2017 Date of Decision: 13.08.2026 SABANA AND OTHERS …Appellants Vs. PUNEET SHARMA AND ANOTHER …Respondents CORAM: HON’BLE MR. JUSTICE HARKESH MANUJA Present: Mr. Aazam Khan, Advocate for appellants. Mr. Pardeep Kumar, Advocate for respondent/Insurance Company. **** HARKESH MANUJA, J. (ORAL) The short grievance raised on behalf of the appellants-claimants is that although the learned Commissioner accepted the claim petition and awarded compensation along with interest, it failed to consider the question of imposition of penalty upon the employer in accordance with Section 4A (3) (b) of the Employees’ Compensation Act, 1923, which reads as under:- “4A. Compensation to be paid when due and penalty for default. 1. xxx xxx xxx 2. xxx xxx xxx (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall— (a) xxx xxx xxx (b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent. of such amount by way of penalty: TEJWINDER SINGH 2026.08.18 16:51 I agree to specified portions of this document 2 FAO-1238-2017 Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed.” 2. In such circumstances, without commenting upon merits of the appeal, the matter is remanded to the learned Commissioner for a limited purpose to consider and adjudicate the question of imposition of penalty under Section 4A(3)(b) of the Employees' Compensation Act, 1923 against respondent No.1-employer while upholding the grant of compensation and interest awarded in favour of claimants. The needful exercise be done by affording due opportunity of hearing to the parties concerned after putting them to notice. 3. Disposed of in the above terms. 4. The appellants shall appear before the learned Commissioner on 31.08.2026. The proceedings be concluded within six months thereafter or else the claimants-appellants shall be entitled to seek necessary directions regarding imposition of cost on the authority from this Court in this appeal. 5. Pending miscellaneous application(s), if any, shall also stand disposed of. 13.08.2026 (HARKESH MANUJA) Tejwinder JUDGE Whether speaking/reasoned Yes/No Whether reportable Yes/No TEJWINDER SINGH 2026.08.18 16:51 I agree to specified portions of this document