Bombay High Court Dismisses Insurance Company's Appeal in Workmen's Compensation Case — Death of Driver During Employment Course. Employer-Employee Relationship Established; Insurance Company Liable to Pay Compensation Under Workmen's Compensation Act, 1923.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
  • 1
Judgement Image
Font size:
Print

Case Note & Summary

The case involves an appeal by New India Assurance Company Limited against an award passed by the Commissioner for Workmen's Compensation and Judge, Labour Court, Dhule, dated 27.08.2007 in Application (WCA) No.111/2005. The respondents, original claimants, are the dependents of deceased Ravindra alias Bhaiyya Ashok Salunkhe, who was employed as a driver of a Mahindra Jeep bearing registration No.MH15K5575 owned by respondent no.4. On 18.11.2004, while returning from Nadiyad (Gujarat) to Shevali, the vehicle met with an accident near village Kavthe on Surat Nagpur National Highway, dashing against a tree, resulting in the driver's death. The claimants sought compensation under the Workmen's Compensation Act, 1923, contending that the death occurred during the course of employment. The owner did not contest, but the insurance company resisted, arguing that the claimants failed to prove the employer-employee relationship and that the deceased had a valid driving licence. The Commissioner, after considering evidence including oral testimony of claimant Ashok Salunkhe (father of deceased) and documents such as the insurance policy and accident report, held that the deceased was a workman employed by the owner and that the accident arose out of and in the course of employment. The Commissioner awarded compensation of Rs.3,79,520/- with interest at 12% per annum from the date of accident. The insurance company appealed, challenging the findings on employer-employee relationship and course of employment. The High Court, per Justice R.M. Borde, examined the evidence and found that the claimants had sufficiently proved the employment relationship through consistent oral evidence and the fact that the deceased was driving the owner's vehicle at the time of accident. The court noted that the insurance company did not produce any evidence to rebut the claim. Regarding the driving licence, the court observed that the insurance company failed to prove that the deceased did not have a valid licence, and the burden was on the insurer to establish a breach of policy conditions. The court upheld the Commissioner's findings and dismissed the appeal, confirming the award.

Headnote

A) Workmen's Compensation - Employer-Employee Relationship - Burden of Proof - The claimants must establish that the deceased was a workman employed by the owner and that the accident arose out of and in the course of employment. In this case, the claimants proved through oral evidence and documents that the deceased was a driver employed by the owner and died while returning from a trip during employment. The Commissioner's finding of employer-employee relationship was upheld. (Paras 2-5)

B) Workmen's Compensation - Course of Employment - Accident During Return Journey - The accident occurred while the deceased was returning from Nadiyad (Gujarat) to Shevali after completing a trip, which is within the course of employment. The vehicle dashed against a tree, causing fatal injuries. The Commissioner correctly held that the death arose out of and in the course of employment. (Paras 2, 5)

C) Workmen's Compensation - Insurance Liability - Valid Policy - The vehicle was insured with the appellant insurance company under a valid policy from 27.12.2003 to 26.12.2004. The insurance company is jointly and severally liable to pay compensation to the claimants. The appeal challenging the award was dismissed. (Paras 2, 6)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the deceased driver was a workman employed by the owner and whether the accident arose out of and in the course of employment, making the insurance company liable to pay compensation.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal dismissed. The judgment and award dated 27.08.2007 passed by Commissioner for Workmen's Compensation and Judge, Labour Court, Dhule in Application (WCA) No.111/2005 is confirmed.

Law Points

  • Employer-employee relationship
  • course of employment
  • burden of proof
  • insurance liability
  • Workmen's Compensation Act
  • 1923
Subscribe to unlock Law Points Subscribe Now

Case Details

2010 LawText (BOM) (02) 10

First Appeal No.1099 of 2008

2010-02-08

R.M. Borde

S.L. Kulkarni for appellant, C.R. Deshpande for respondents 1 to 3

New India Assurance Company Limited

Ashok Dayaram Salunkhe, Sau.Vimal Ashok Salunkhe, Satish Ashok Salunkhe, Bharat Ashok Ambedkar

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against award of compensation under Workmen's Compensation Act, 1923

Remedy Sought

Insurance company sought to set aside the award directing payment of compensation to claimants

Filing Reason

Insurance company challenged the findings of employer-employee relationship and course of employment

Previous Decisions

Commissioner for Workmen's Compensation and Judge, Labour Court, Dhule awarded compensation of Rs.3,79,520/- with interest at 12% per annum from date of accident

Issues

Whether the deceased was a workman employed by the owner of the vehicle? Whether the accident arose out of and in the course of employment? Whether the insurance company is liable to pay compensation?

Submissions/Arguments

Appellant insurance company argued that claimants failed to prove employer-employee relationship and that deceased had valid driving licence. Claimants contended that deceased was employed as driver and died during course of employment, and insurance company is liable under valid policy.

Ratio Decidendi

The claimants established through oral evidence that the deceased was employed as a driver by the owner and died in an accident during the course of employment. The insurance company failed to rebut the evidence or prove breach of policy conditions regarding driving licence. Therefore, the insurance company is liable to pay compensation under the Workmen's Compensation Act, 1923.

Judgment Excerpts

This is an appeal by appellant New India Assurance Company Limited – original opponent no.2 raising exception to the judgment and award passed by Commissioner for Workmen’s Compensation & Judge, Labour Court, Dhule on 27.08.2007 in Application (WCA) No.111/2005. It is contended that deceased met with death during the course of employment and as such, registered owner of the vehicle is liable to pay compensation. Considering contentions raised by parties and after scrutinising evidence placed on record, the Commissioner for Workmen’s Compensation, in view of the judgment and award dated 27.08.2007, was pleased to direct payment of compensation.

Procedural History

Claimants filed Application (WCA) No.111/2005 before Commissioner for Workmen's Compensation, Dhule. The Commissioner awarded compensation on 27.08.2007. Insurance company appealed to High Court vide First Appeal No.1099 of 2008. Appeal dismissed on 08.02.2010.

Acts & Sections

  • Workmen's Compensation Act, 1923:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Insurance Company's Appeal in Workmen's Compensation Case — Death of Driver During Employment Course. Employer-Employee Relationship Established; Insurance Company Liable to Pay Compensation Under Workmen's Compensation ...
Related Judgement
High Court Bombay High Court Dismisses Executor's Suit for Possession of Flat in Probate Dispute — Co-owner's Transfer to Company Upheld as Valid During Testator's Lifetime. The court refused interim relief as the plaintiff's title as executor was not establi...