Case Note & Summary
The judgment arises from two first appeals concerning a motor vehicle accident that occurred on 20th June 2010 on the Western Express Highway, Vile Parle West, Mumbai. The accident involved a M.Tempo bearing registration No. MH-06-G-8248, owned by Dawood Mohd. Khati and insured with The New India Assurance Company Ltd. Two persons, Shrikant @ Deepak K.K. Vishwakarma (Deepak) and Mohd Jaffer @ Sadiq Ali Mohd. Khan (Sadiq), sustained fatal injuries. The parents of Deepak filed Application (WCA) No. 648/B-122 of 2011 before the Commissioner for Workmen's Compensation and Judge, 3rd Labour Court, Mumbai, which awarded compensation of Rs.4,98,082/- with interest at 12% p.a. from the date of the accident. The parents of Sadiq filed Application (WCA) No. 648/B-122 of 2011 (likely a different number) before the Commissioner of Workmen's Compensation, 4th Labour Court, which awarded compensation of Rs.6,28,485/- with interest at 12% p.a. from the date of the accident. The New India Assurance Company Ltd. filed First Appeal No. 246 of 2015 challenging the award in Deepak's case, while the parents of Sadiq filed First Appeal No. 169 of 2014 seeking enhancement of compensation. The High Court dismissed the insurance company's appeal, holding that the Commissioner's findings on employer-employee relationship and limitation were correct. The court partly allowed the claimants' appeal in Sadiq's case, directing that interest be paid from the date of the accident as per Section 4A of the Workmen's Compensation Act, 1923. The court also held that the insurance company is liable to pay the compensation awarded.
Headnote
A) Workmen's Compensation - Employer-Employee Relationship - Burden of Proof - The claimants must establish that the deceased was a 'workman' under the Workmen's Compensation Act, 1923. The Commissioner's finding that the deceased were employees of the owner of the tempo was based on evidence and not perverse. (Paras 1-10)
B) Workmen's Compensation - Limitation - Section 10 of the Workmen's Compensation Act, 1923 - The claim application must be filed within two years of the accident. The Commissioner has discretion to condone delay if sufficient cause is shown. In this case, the delay was condoned as the claimants were pursuing remedies before the Motor Accidents Claims Tribunal. (Paras 11-15)
C) Workmen's Compensation - Interest - Section 4A of the Workmen's Compensation Act, 1923 - The Commissioner awarded interest at 12% per annum from the date of the accident. The High Court held that interest is payable from the date of the accident if the employer fails to pay compensation within one month, and the rate of 12% is in accordance with the Act. (Paras 16-20)
D) Workmen's Compensation - Liability of Insurance Company - The insurance company is liable to indemnify the owner for compensation awarded under the Workmen's Compensation Act, 1923, as the vehicle was insured. The policy covers the risk of employees travelling in the vehicle. (Paras 21-26)
Issue of Consideration
Whether the Commissioner for Workmen's Compensation correctly awarded compensation to the claimants and whether the insurance company is liable to pay the same, including the issue of limitation and rate of interest.
Final Decision
The High Court dismissed First Appeal No. 246 of 2015 filed by the insurance company and partly allowed First Appeal No. 169 of 2014 filed by the claimants, directing that interest be paid from the date of the accident as per Section 4A of the Workmen's Compensation Act, 1923.
Law Points
- Workmen's Compensation Act
- 1923
- Section 4A
- Section 10
- Section 3
- Interest
- Limitation
- Employer-Employee Relationship
- Burden of Proof
- Insurance Liability
Case Details
2021 LawText (BOM) (12) 87
First Appeal No. 169 of 2014 and First Appeal No. 246 of 2015
Mr. Amol Gatne i/b Ms. Swati Mehta for the appellants in First Appeal No.169 of 2014 and for the respondents in First Appeal No.246 of 2015; Mr. D.R. Mahadik for the appellant in FA No.246/2015 and for respondent in FA No.169/2014
Mohammed Ali Abdul Samad Khan and ors (in FA 169/2014); The New India Assurance Company Ltd (in FA 246/2015)
Dawood Mohd. Khati and ors (in FA 169/2014); Mr. Kamlesh Kumar Jaymurti Vishwakarma and others (in FA 246/2015)
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Nature of Litigation
Appeals against orders of the Commissioner for Workmen's Compensation awarding compensation to the parents of two deceased workers who died in a motor vehicle accident.
Remedy Sought
In FA 169/2014, the claimants sought enhancement of compensation. In FA 246/2015, the insurance company sought to set aside the award.
Filing Reason
The insurance company challenged the award on grounds of limitation and employer-employee relationship. The claimants sought higher compensation.
Previous Decisions
The Commissioner for Workmen's Compensation awarded compensation of Rs.4,98,082/- to the parents of Deepak and Rs.6,28,485/- to the parents of Sadiq, with interest at 12% p.a. from the date of the accident.
Issues
Whether the deceased were 'workmen' under the Workmen's Compensation Act, 1923?
Whether the claim applications were barred by limitation under Section 10 of the Act?
Whether the insurance company is liable to pay the compensation awarded?
What is the correct rate of interest and from which date should it be awarded?
Submissions/Arguments
The insurance company argued that the deceased were not employees of the owner and that the claim was time-barred.
The claimants argued that they were entitled to compensation and that the delay was condonable as they were pursuing remedies before the Motor Accidents Claims Tribunal.
Ratio Decidendi
The Commissioner's finding on employer-employee relationship is a finding of fact not to be interfered with unless perverse. The delay in filing the claim can be condoned if sufficient cause is shown. Interest under Section 4A is payable from the date of the accident if the employer fails to pay compensation within one month. The insurance company is liable to indemnify the owner.
Judgment Excerpts
The two Appeals involving two claimants are tagged together since they arise out of the same incident, an accident which took place on 20th June 2010 on Western Express Highway, South Side Road, Near Giri Guest House, Vile Parle West.
First Appeal No.246 of 2015 is filed by the New India Assurance Co. Ltd, challenging the order passed by the Commissioner for Workmen's Compensation and Judge, 3rd Labour Court, Mumbai on 18/10/2014, in Application (WCA) No. 648/B-122 of 2011
First Appeal No.169 of 2014 is filed by the claimants/ parents of Sadiq, challenging the order passed by the same by Commissioner of Workmen's Compensation, 4th Labour Court on 30th April 2012
Procedural History
The accident occurred on 20th June 2010. The parents of Deepak filed Application (WCA) No. 648/B-122 of 2011 before the Commissioner for Workmen's Compensation, 3rd Labour Court, Mumbai, which awarded compensation on 18th October 2014. The parents of Sadiq filed an application before the Commissioner of Workmen's Compensation, 4th Labour Court, which awarded compensation on 30th April 2012. The insurance company filed First Appeal No. 246 of 2015 challenging the award in Deepak's case. The claimants in Sadiq's case filed First Appeal No. 169 of 2014 seeking enhancement. Both appeals were heard together by the High Court.
Acts & Sections
- Workmen's Compensation Act, 1923: Section 3, Section 4A, Section 10
