Bombay High Court Allows Employer's Appeal in Part in Workmen's Compensation Case — Injury During Employment Upheld. Truck helper's injury while unloading marbles from employer's truck held to arise out of and in the course of employment under Section 3 of the Workmen's Compensation Act, 1923; compensation of Rs. 3,84,000/- upheld with interest and penalty.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The case involves an appeal filed by Associated Cargo Movers and Packers Private Limited (the employer) against an order of the Commissioner for Workmen's Compensation, Osmanabad, awarding compensation to Hanumant s/o Raghunath Mali (the workman). The workman was employed as a labourer and on 10-09-2007, he accompanied a truck owned by the appellant to Bangalore for unloading marbles. During unloading, a marble slab fell on his leg, causing severe injuries. He filed a claim under the Workmen's Compensation Act, 1923. The Commissioner found that the injury arose out of and in the course of employment and awarded compensation of Rs. 3,84,000/- with interest and penalty. The employer appealed, arguing that the workman was not his employee and that the injury did not occur during employment. The High Court examined the evidence, including the police investigation and medical reports, and held that the workman was indeed employed by the appellant and that the injury occurred while he was unloading marbles, which was part of his duties. The court also condoned the delay in giving notice of the accident, as the employer had knowledge. The court upheld the compensation amount but modified the interest and penalty, directing payment of interest at 12% per annum from the date of accident and a penalty of 50% of the compensation. The appeal was partly allowed.

Headnote

A) Workmen's Compensation - Employer's Liability - Injury Arising Out of Employment - Section 3, Workmen's Compensation Act, 1923 - The respondent, a truck helper, was injured while unloading marbles from the appellant's truck during the course of his employment. The court held that the injury arose out of and in the course of employment, as the workman was engaged in a task incidental to his employment. The employer is liable to pay compensation. (Paras 1-10)

B) Workmen's Compensation - Notice of Accident - Delay Condonation - Section 10, Workmen's Compensation Act, 1923 - The respondent failed to give notice of the accident to the employer within the prescribed period. However, the court condoned the delay as the employer had knowledge of the accident from the police investigation and the workman was hospitalized. (Paras 11-15)

C) Workmen's Compensation - Quantum of Compensation - Permanent Partial Disability - Section 4, Workmen's Compensation Act, 1923 - The Commissioner awarded compensation of Rs. 3,84,000/- based on 60% permanent partial disability and monthly wages of Rs. 3,000/-. The court upheld the quantum, noting that the disability was assessed by a medical officer and the wages were not disputed. (Paras 16-20)

D) Workmen's Compensation - Interest and Penalty - Delay in Payment - Section 4A, Workmen's Compensation Act, 1923 - The court directed the employer to pay interest at 12% per annum from the date of accident until payment, and a penalty of 50% of the compensation amount for delayed payment without justifiable cause. (Paras 21-25)

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Issue of Consideration

Whether the injury suffered by the respondent-workman arose out of and in the course of his employment with the appellant, and whether the appellant is liable to pay compensation under the Workmen's Compensation Act, 1923.

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Final Decision

The appeal is partly allowed. The order of the Commissioner for Workmen's Compensation is modified. The appellant is directed to pay compensation of Rs. 3,84,000/- with interest at 12% per annum from the date of accident (10-09-2007) until payment, and a penalty of 50% of the compensation amount for delayed payment. The insurance company is directed to pay the amount to the workman and recover from the appellant.

Law Points

  • Workmen's Compensation Act
  • 1923
  • Section 3
  • Section 4
  • Section 10
  • Section 12
  • Employer's liability
  • Course of employment
  • Injury arising out of employment
  • Notice of accident
  • Limitation
  • Delay condonation
  • Interest
  • Penalty
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Case Details

2019 LawText (BOM) (09) 10

First Appeal No.1349 of 2014

2019-09-04

Smt. Vibha Kankanwadi, J.

Mr. Amit Savale for Appellant, Mr. A. S. More for Respondent No.1, Mr. S. G. Chapalgaonkar for Respondent No.2

Associated Cargo Movers and Packers Private Limited

Hanumant s/o Raghunath Mali and Bajaj Allianz General Insurance Co. Ltd.

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Nature of Litigation

Appeal against order of Commissioner for Workmen's Compensation awarding compensation to workman for injury sustained during employment.

Remedy Sought

Appellant sought to set aside the Commissioner's order awarding compensation to the respondent-workman.

Filing Reason

Appellant disputed liability, claiming the workman was not his employee and injury did not occur during employment.

Previous Decisions

Commissioner for Workmen's Compensation, Osmanabad awarded compensation of Rs. 3,84,000/- with interest and penalty. Earlier, this Court dismissed the appeal on 27-07-2015, but on review, the judgment was set aside and the appeal was restored.

Issues

Whether the injury suffered by the respondent-workman arose out of and in the course of his employment with the appellant? Whether the appellant is liable to pay compensation under the Workmen's Compensation Act, 1923? Whether the delay in giving notice of the accident should be condoned? What is the quantum of compensation, interest, and penalty payable?

Submissions/Arguments

Appellant argued that the workman was not his employee and that the injury did not occur during the course of employment. Respondent-workman contended that he was employed as a labourer and was injured while unloading marbles from the appellant's truck, which was part of his duties. Insurance company submitted that the policy covered the employer's liability and that it was liable to indemnify the appellant.

Ratio Decidendi

The injury suffered by the workman arose out of and in the course of his employment as he was engaged in unloading marbles from the employer's truck, which was incidental to his duties. The employer is liable under Section 3 of the Workmen's Compensation Act, 1923. Delay in notice is condoned as the employer had knowledge. Compensation is based on 60% permanent partial disability and monthly wages of Rs. 3,000/-. Interest and penalty are payable under Section 4A for delayed payment without justifiable cause.

Judgment Excerpts

The respondent was working as a labour and he went to Bangalore with Truck bearing No.MH-14/ A-7825 on 10-09-2007. The said truck belonged to present appellant – original respondent No.1. He was taken along with the truck for unloading the marbles and there were... The injury arose out of and in the course of employment. The employer is liable to pay compensation.

Procedural History

Respondent-workman filed petition for compensation under Workmen's Compensation Act before Commissioner for Workmen's Compensation, Osmanabad. Commissioner awarded compensation on [date not mentioned]. Appellant filed First Appeal No.1349 of 2014 before Bombay High Court, which was dismissed on 27-07-2015. Appellant filed Special Leave to Appeal (Civil) No.3040 of 2016 before Supreme Court, which was withdrawn with liberty to approach High Court by way of review. Review application (Civil) No.196 of 2016 was allowed, setting aside the dismissal and restoring the appeal. Insurance Company was added as respondent No.2. The appeal was then heard and decided on 04-09-2019.

Acts & Sections

  • Workmen's Compensation Act, 1923: Section 3, Section 4, Section 4A, Section 10, Section 12
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