Case Note & Summary
The appeal arises from the dismissal of an application for compensation under the Workmen's Compensation Act, 1923, by the Commissioner for Workmen's Compensation and Judge, 8th Labour Court, Mumbai. The applicants, dependents of late Vishakha Singh Suman Singh, claimed that the deceased was employed as a driver by respondent no.1, Tarvinder Singh, driving truck No.MH-04-F-8979, which was insured with respondent no.2, New India Assurance Co. Ltd. On 3rd November 2003, while driving the truck in the course of employment, the deceased died at Chandwad, district Nashik. The applicants alleged that the deceased was 35 years old and earning Rs.4,000/- per month. The Commissioner dismissed the application, holding that the applicants failed to prove the employer-employee relationship and that the accident arose out of and in the course of employment. The High Court reversed the decision, noting that the employer failed to appear or produce evidence despite service of notice, warranting an adverse inference under Section 114(g) of the Indian Evidence Act, 1872. The court found that the applicants' evidence, including the FIR, inquest panchnama, and postmortem report, sufficiently established that the deceased was employed by respondent no.1 and died while driving the truck in the course of employment. The court computed compensation at Rs.4,47,120/- with interest at 12% per annum from the date of accident, holding respondent no.2 insurer liable to pay.
Headnote
A) Workmen's Compensation - Employer-Employee Relationship - Adverse Inference - Section 10 Workmen's Compensation Act, 1923 - Section 114(g) Indian Evidence Act, 1872 - The Commissioner dismissed the claim holding that the applicants failed to prove that the deceased was employed by the respondent. The High Court reversed, holding that the employer's failure to appear or produce evidence despite service of notice warranted an adverse inference under Section 114(g) of the Evidence Act, and the applicants' evidence, including the FIR and postmortem report, sufficiently established the employment and that the death arose out of and in the course of employment. (Paras 1-23) B) Workmen's Compensation - Course of Employment - Death While Driving Truck - Section 3 Workmen's Compensation Act, 1923 - The deceased died while driving the employer's truck on his way to Mumbai. The High Court held that the death clearly arose out of and in the course of employment, as the accident occurred during the performance of his duties as a driver. (Paras 2-23) C) Workmen's Compensation - Computation of Compensation - Section 4 Workmen's Compensation Act, 1923 - The High Court computed compensation based on the deceased's age (35 years) and monthly wages (Rs.4,000/-), applying the relevant factor from Schedule IV, and awarded Rs.4,47,120/- with interest at 12% per annum from the date of accident. (Paras 22-23)
Issue of Consideration
Whether the Commissioner for Workmen's Compensation erred in dismissing the claim for compensation on the ground that the applicants failed to prove employer-employee relationship and that the accident arose out of and in the course of employment.
Final Decision
Appeal allowed. The judgment and award dated 14th April 2007 passed by the Commissioner for Workmen's Compensation and Judge, 8th Labour Court, Mumbai, is set aside. The applicants are entitled to compensation of Rs.4,47,120/- with interest at 12% per annum from the date of accident (3rd November 2003) till realization. Respondent no.2 insurer is directed to pay the amount within eight weeks.
Law Points
- Workmen's Compensation
- Adverse Inference
- Burden of Proof
- Employer-Employee Relationship
- Course of Employment
- Section 114(g) Evidence Act
- Section 10 Workmen's Compensation Act




