Case Note & Summary
The case involves an appeal by National Insurance Co. Ltd. against a judgment of the learned Commissioner under Workmen's Compensation and Judge, Eleventh Labour Court, Mumbai, dated 4th May 2013. The respondent no.1, Shamshad Shaukatali Ansari, was employed by respondent no.2, Shabuddin S. Mirza, as a driver of a tempo bearing registration no. MH-04-CP-2611. On 13th July 2006, while driving on the Malad Western Express Highway, he met with an accident and sustained serious injuries including a fracture of the right tibia condyle of the knee joint. He was initially admitted to Bhagwati Hospital and later shifted to Punit Orthopedic Surgical Hospital. The vehicle was insured with the appellant. The respondent no.1 filed an application under the Workmen's Compensation Act, 1923, claiming compensation. The learned authority directed the appellant and respondent no.2 jointly and severally to pay Rs.2,06,668/- with interest at 12% p.a. from 13th August 2006 (30 days after the accident) till realization, and also imposed a penalty of Rs.10,000/- on respondent no.2 for delayed payment. The appellant challenged this judgment. The respondent no.2 did not appeal. The High Court heard the appeal finally at the admission stage with consent. The court considered the facts and the law. The judgment is reserved on 10th December 2019 and pronounced on 3rd January 2020. The court upheld the award, confirming the joint and several liability of the insurer and employer, and the penalty on the employer.
Headnote
A) Workmen's Compensation - Employer's Liability - Joint and Several Liability - Section 4, Workmen's Compensation Act, 1923 - Employee sustained injuries while driving employer's vehicle - Insurer and employer held jointly and severally liable to pay compensation - Employer also liable to pay penalty for not depositing compensation within one month - Held that the insurer is liable to indemnify the employer and pay compensation to the employee (Paras 1-3).
Issue of Consideration
Whether the appellant-insurer is liable to pay compensation jointly and severally with the employer for injuries sustained by the employee in a motor vehicle accident during employment, and whether the employer is liable to pay penalty for delayed payment.
Final Decision
The appeal is dismissed. The judgment of the learned Commissioner under Workmen's Compensation and Judge, Eleventh Labour Court, Mumbai dated 4th May 2013 is upheld. The appellant and respondent no.2 are jointly and severally liable to pay Rs.2,06,668/- with interest at 12% p.a. from 13th August 2006 till realization. Respondent no.2 is liable to pay penalty of Rs.10,000/-.
Law Points
- Joint and several liability of insurer and employer
- penalty for delayed payment
- interest on compensation
- Workmen's Compensation Act
- 1923
