Case Note & Summary
The appeal arises from a judgment and award dated 7th February 2020 passed by the learned Commissioner for Employees' Compensation and Judge, Tenth Labour Court, Mumbai, in Application (ECA) No. 336/C-80 of 2014. The respondent No.1 (original applicant) was employed as a driver with respondent No.2 (employer) on a tanker bearing registration No. GH-16/X-7166, which was insured with the appellant (Reliance General Insurance Co. Ltd.). On 18th March 2014, while the applicant was driving the vehicle at Mohol, District Solapur, he met with an accident resulting in permanent disablement. The applicant filed an application for compensation under the Employees' Compensation Act, 1923. The Commissioner allowed the application and directed the appellant and respondent No.2 to jointly and severally pay Rs.8,70,576/- with simple interest at 12% per annum from the date of accident till realization. Additionally, respondent No.2 was directed to pay a penalty of 40% of the compensation. The appellant-insurer challenged the award. The High Court, after considering the facts and submissions, upheld the award, holding that the injury arose out of and in the course of employment, and the insurer is liable to indemnify the employer. The appeal was dismissed.
Headnote
A) Employees' Compensation - Permanent Disablement - Arising out of Employment - Section 3 of the Employees' Compensation Act, 1923 - The applicant-driver suffered permanent disablement due to an accident while driving a tanker during employment - The court held that the injury arose out of and in the course of employment, and the employer and insurer are jointly and severally liable to pay compensation (Paras 1-2). B) Employees' Compensation - Penalty for Default - Section 4A(3) of the Employees' Compensation Act, 1923 - The employer failed to deposit compensation without sufficient cause - The court upheld the penalty of 40% of the compensation imposed by the Commissioner (Para 1). C) Employees' Compensation - Interest - Section 4A(3) of the Employees' Compensation Act, 1923 - The court awarded simple interest at 12% per annum from the date of accident till realization (Para 1).
Issue of Consideration
Whether the Commissioner for Employees' Compensation was justified in awarding compensation and penalty against the insurer and employer for permanent disablement suffered by the applicant-driver during the course of employment.
Final Decision
Appeal dismissed. The judgment and award of the Commissioner for Employees' Compensation dated 7th February 2020 is upheld.
Law Points
- Employer's liability for compensation for personal injury caused by accident arising out of and in the course of employment
- Insurer's liability to indemnify employer
- Penalty for failure to deposit compensation without sufficient cause
- Computation of compensation for permanent disablement
- Interest on delayed payment
