Bombay High Court Dismisses Appeal for Enhancement of Compensation Under Workmen's Compensation Act Due to Abatement Against Employer. Appeal against insurer cannot be entertained in absence of employer/owner of vehicle as primary liability rests on employer.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The appellant, Tajoddin Shaikh, filed a claim under the Workmen's Compensation Act, 1923, alleging that he was employed as a cleaner on truck No. MH-24-A-2220 owned by respondent No.1, S.R. Kombde, earning Rs.2,000 per month. On 27-01-1998, while removing stone supports from the tyres, the truck rolled and crushed his left foot, causing permanent disablement and loss of earning capacity. The Commissioner for Workmen's Compensation at Latur awarded Rs.1,37,124 with 12% interest per annum from the accident date. Dissatisfied, the appellant filed this appeal under Section 30 of the Act seeking enhancement. The appeal was served on respondents; however, respondent No.1 (employer/owner) had died, and the bailiff report dated 17-04-2004 confirmed his death. No steps were taken to bring his legal heirs on record, and the Registrar (Judicial) passed an order on 01-02-2005 abating the appeal against respondent No.1. Even thereafter, no application was made to set aside the abatement for 18 years. The appellant sought enhancement only against respondent No.2 (insurer). The court held that under the Workmen's Compensation Act, the primary liability to pay compensation rests on the employer/owner. Since the appeal against the employer had abated, the appeal against the insurer alone could not be entertained. The court relied on Oriental Insurance Company Ltd. v. Sunita Rathi (1998 SC 4761) for the proposition that no award can be passed against the insurer in the absence of the owner. Consequently, the appeal was dismissed as not maintainable.

Headnote

A) Workmen's Compensation - Abatement of Appeal - Primary Liability of Employer - Section 30 of Workmen's Compensation Act, 1923 - Appeal against employer abated due to death and failure to bring legal heirs - Held that primary liability to pay compensation rests on employer, and in absence of employer, appeal against insurer cannot be entertained (Paras 4-5).

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Issue of Consideration

Whether an appeal seeking enhancement of compensation under the Workmen's Compensation Act can be entertained against the insurer alone when the appeal against the employer/owner has abated.

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Final Decision

The appeal is dismissed as not maintainable. The appeal against respondent No.1 (employer/owner) abated in 2005, and no steps were taken to set aside abatement. In absence of employer, appeal against insurer cannot be entertained.

Law Points

  • Abatement of appeal against employer
  • Primary liability of employer under Workmen's Compensation Act
  • Insurer's liability only in presence of owner
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Case Details

2023 LawText (BOM) (01) 66

First Appeal No. 326 of 2004

2023-02-20

S.G. Chapalgaonkar

Mr C.C. Deshpande for Appellant, Mr V.N. Upadhye for Respondent No. 2

Tajoddin s/o Nabilal @ Nawabsab Shaikh

S.R. Kombde (abated), Branch Manager, Oriental Insurance Company Ltd.

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Nature of Litigation

Appeal under Section 30 of Workmen's Compensation Act seeking enhancement of compensation awarded by Commissioner for Workmen's Compensation.

Remedy Sought

Appellant sought enhancement of compensation from Rs.1,37,124 to a higher amount.

Filing Reason

Appellant was dissatisfied with the compensation awarded by the Commissioner for Workmen's Compensation for permanent disablement suffered in a workplace accident.

Previous Decisions

Commissioner for Workmen's Compensation / Labour Judge at Latur passed judgment and award dated 19-06-2000 in WCA No.37/1998 granting Rs.1,37,124 with 12% interest per annum from 27-01-1998.

Issues

Whether the appeal seeking enhancement of compensation can be entertained against the insurer alone when the appeal against the employer/owner has abated.

Submissions/Arguments

Appellant argued for enhancement of compensation. Insurer (respondent No.2) opposed the appeal, likely contending that in absence of employer, appeal is not maintainable.

Ratio Decidendi

Under the Workmen's Compensation Act, the primary liability to pay compensation rests on the employer/owner of the vehicle. An appeal seeking enhancement of compensation cannot be entertained against the insurer alone when the appeal against the employer has abated, as no award can be passed against the insurer in the absence of the owner.

Judgment Excerpts

The primary liability to pay the compensation would rest upon the employer /owner of the vehicle. The Supreme Court of India in the matter of Oriental Insurance Company Ltd., Vs. Sunita Rathi and others reported in 1998 SC 4761 has laid down that no award can be passed against the insurer in absence of owner of the insured vehicle.

Procedural History

Appellant filed claim before Commissioner for Workmen's Compensation at Latur (WCA No.37/1998). Commissioner awarded Rs.1,37,124 with interest on 19-06-2000. Appellant filed First Appeal No.326/2004 before Bombay High Court (Aurangabad Bench) on 20-02-2023. Appeal against respondent No.1 abated on 01-02-2005 due to death and failure to bring legal heirs. Appeal heard and dismissed on 20-02-2023.

Acts & Sections

  • Workmen's Compensation Act, 1923: Section 30
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