Case Note & Summary
The present appeal was filed under Section 30 of the Employees' Compensation Act, 1923, by the claimants (widow and minor sons of the deceased Vasanta Maroti Kodape) challenging the judgment and award dated 10.4.2019 passed by the learned Commissioner, Employees' Compensation Act, Labour Court at Chandrapur in Case No.W.C.A.16/2014. The Commissioner had held the owner of the vehicle (respondent No.1) liable to pay compensation but exonerated the Insurance Company (respondent No.2) from liability. The facts of the case are that the deceased Vasanta Maroti Kodape was working as a labourer with the owner of the vehicle for more than two years and was getting Rs.5200/- per month as wages. On 10.5.2014, while working on a tractor bearing No.MH-34-L-3919 with trailer No.MH-34-L-3920 owned by respondent No.1, the tractor was driven by Ajay Satpute in a zigzag, rash, and negligent manner, causing the deceased to fall from the tractor and sustain fatal injuries. The claimants filed a claim for compensation. The learned Commissioner held that the deceased was a workman under the Act and that the accident arose out of and in the course of employment, but exonerated the Insurance Company on the ground that the driver did not have a valid driving license. The main legal issues were whether the employer-employee relationship was established and whether the Insurance Company was liable. The court analyzed the evidence and found that the deceased was employed by respondent No.1 and was working on the tractor at the time of the accident. The court held that the Insurance Company failed to prove any breach of policy conditions, as no evidence was led to show that the driver did not have a valid license. The court also noted that the Insurance Company did not examine any witness to prove the alleged breach. The court allowed the appeal, set aside the award exonerating the Insurance Company, and held the Insurance Company liable to pay the compensation amount with interest.
Headnote
A) Employees' Compensation - Employer-Employee Relationship - Section 3 of Employees' Compensation Act, 1923 - The court held that the relationship of employer and employee was established as the deceased was working as a labourer on the tractor owned by the respondent No.1 for more than two years and was receiving wages. The absence of a written contract does not negate the relationship. (Paras 5-6) B) Insurance Law - Liability of Insurer - Section 147 of Motor Vehicles Act, 1988 - The Insurance Company is liable to indemnify the owner for compensation awarded under the Employees' Compensation Act, 1923, as the tractor was insured and the accident occurred during the course of employment. The insurer failed to prove any breach of policy conditions. (Paras 7-10) C) Evidence - Burden of Proof - Breach of Policy Conditions - The burden to prove breach of policy conditions lies on the Insurance Company. Mere allegations without evidence are insufficient to exonerate the insurer. (Para 9)
Issue of Consideration
Whether the Insurance Company is liable to indemnify the owner of the vehicle for compensation awarded to the dependents of a deceased worker who died in a tractor accident, and whether the employer-employee relationship was established.
Final Decision
The appeal is allowed. The judgment and award dated 10.4.2019 passed by the learned Commissioner, Employees' Compensation Act, Labour Court at Chandrapur in Case No.W.C.A.16/2014 is set aside to the extent of exonerating the Insurance Company. The Insurance Company (respondent No.2) is held liable to pay the compensation amount with interest as awarded by the Commissioner.
Law Points
- Employer-employee relationship
- vicarious liability
- insurance liability
- breach of policy conditions
- burden of proof
- Employees' Compensation Act
- 1923
