Bombay High Court Allows Appeal in Workmen's Compensation Case — Death of Driver in Course of Employment Entitles Dependents to Compensation. Employer's Failure to Produce Evidence Leads to Adverse Inference Under Section 114(g) of Evidence Act.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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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)

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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.

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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
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Case Details

2022 LawText (BOM) (01) 69

First Appeal No. 1476 of 2007

2022-01-17

N. J. Jamadar, J.

Mr. Amol Gatane for Appellants, Mr. S. M. Dange for Respondent no.2

Smt. Harvinder Kaur Vishakha Singh & Ors.

Shri Tarvinder Singh K. Singh & Anr.

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Nature of Litigation

Appeal against dismissal of claim for compensation under Workmen's Compensation Act for death of a driver in accident.

Remedy Sought

Appellants sought compensation for death of deceased Vishakha Singh Suman Singh, who died while driving truck in course of employment.

Filing Reason

Death of the deceased in a motor vehicle accident while driving the employer's truck.

Previous Decisions

Commissioner for Workmen's Compensation dismissed the application on 14th April 2007, holding that applicants failed to prove employer-employee relationship and that accident arose out of and in course of employment.

Issues

Whether the Commissioner erred in dismissing the claim for compensation on the ground that the applicants failed to prove employer-employee relationship. Whether the death of the deceased arose out of and in the course of employment. Whether the employer's failure to appear or produce evidence warrants an adverse inference under Section 114(g) of the Evidence Act.

Submissions/Arguments

Appellants argued that the deceased was employed as a driver by respondent no.1 and died while driving the truck in the course of employment, and that the employer failed to appear despite notice, warranting adverse inference. Respondent no.2 insurer argued that the applicants failed to prove the employer-employee relationship and that the accident did not arise out of and in the course of employment.

Ratio Decidendi

The employer's failure to appear or produce evidence despite service of notice warrants an adverse inference under Section 114(g) of the Indian Evidence Act, 1872, that the evidence which could be produced would be unfavorable. The applicants' evidence, including FIR, inquest panchnama, and postmortem report, sufficiently established the employer-employee relationship and that the death arose out of and in the course of employment. Compensation is computed under Section 4 of the Workmen's Compensation Act, 1923, based on the deceased's age and wages.

Judgment Excerpts

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 death of the deceased clearly arose out of and in the course of employment as he died while driving the employer's truck.

Procedural History

The applicants filed Application (WCA) No.17/B-8/2004 before the Commissioner for Workmen's Compensation and Judge, 8th Labour Court, Mumbai, which was dismissed on 14th April 2007. The applicants then filed the present First Appeal No.1476 of 2007 before the Bombay High Court.

Acts & Sections

  • Workmen's Compensation Act, 1923: Section 3, Section 4, Section 10
  • Indian Evidence Act, 1872: Section 114(g)
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High Court Bombay High Court Allows Appeal in Workmen's Compensation Case — Death of Driver in Course of Employment Entitles Dependents to Compensation. Employer's Failure to Produce Evidence Leads to Adverse Inference Under Section 114(g) of Evidence Act.