As per case facts, a commercial driver died during employment, leading his legal heirs to seek compensation under the EC Act. The Commissioner ordered compensation and imposed a penalty on ... the employer for delayed payment. The employer's insurer, New India Assurance, was initially held liable for compensation and interest. However, the High Court later fastened the liability for compensation, interest, and the penalty on the insurer. The insurer appealed to the Supreme Court, admitting liability for compensation and interest but challenging the penalty component. The question arose whether the High Court erred by making the insurer liable for the penalty component under Section 4A(3)(b) of the EC Act. Finally, the Supreme Court, referring to legislative intent and prior judgments, held that the penalty arises from the employer's personal default and cannot be passed on to the insurer. The appeal was allowed, with the penalty liability fastened solely on the employer.