Case Note & Summary
The appeal was filed by the Oriental Insurance Company Ltd. against the judgment and order dated 30-03-2009 passed by the Commissioner under the Workmen's Compensation Act, Amravati in Application (WCA) No.20 of 2005. The Commissioner had awarded compensation of Rs.3,73,915/- with interest at 12% per annum after one month from the date of the incident, holding the respondents jointly and severally liable to deposit the amount within one month, failing which a 20% penalty on the principal amount was imposed. The facts briefly are that the deceased, Mohammad Nisar Mohammad Sabir, aged about 23 years, was employed by respondent no.1 as a driver of a Metador bearing registration no. MH02T-3035407 owned by respondent no.1. On the day of the incident, while driving from Anjangaon Surji to Daryapur, the vehicle turned turtle near Darshan Dhaba, causing fatal injuries to the deceased. The vehicle was insured with the appellant under policy no.163400/2005/4454 valid from 16-07-2004 to 15-07-2005. The claimants, being the parents and sister of the deceased, filed an application for compensation. The Commissioner, after considering the evidence, held that the deceased was a workman within the meaning of the Workmen's Compensation Act, 1923, and that the accident arose out of and in the course of employment. The appellant-insurer contended that there was a breach of policy conditions as the driver did not hold a valid driving license. However, the Commissioner found that the insurer failed to prove the breach. The High Court, in appeal, upheld the Commissioner's findings, holding that the employer-employee relationship was established, the quantum of compensation was just, and the insurer was liable to pay the awarded amount with interest and penalty as per Section 4A of the Act. The appeal was dismissed with no order as to costs.
Headnote
A) Workmen's Compensation - Employer-Employee Relationship - Section 3 Workmen's Compensation Act, 1923 - Deceased driver was employed by respondent no.1 and died in accident while driving the insured vehicle - Commissioner found employer-employee relationship established - Held that the finding of fact regarding employment is not perverse and does not warrant interference (Paras 1-3). B) Workmen's Compensation - Quantum of Compensation - Section 4 Workmen's Compensation Act, 1923 - Commissioner awarded Rs.3,73,915/- based on monthly salary of Rs.4,500/- and age of deceased - Held that the quantum is just and proper (Paras 1-4). C) Workmen's Compensation - Interest and Penalty - Section 4A Workmen's Compensation Act, 1923 - Commissioner directed payment of interest @ 12% p.a. after one month from incident and 20% penalty on failure to pay within time - Held that the insurer is liable to pay interest and penalty as per statutory provisions (Paras 1, 4).
Issue of Consideration
Whether the Commissioner under the Workmen's Compensation Act was justified in awarding compensation with interest and penalty against the insurer despite alleged breach of policy conditions?
Final Decision
The appeal is dismissed. The judgment and order dated 30-03-2009 passed by the Commissioner under the Workmen's Compensation Act, Amravati in Application (WCA) No.20 of 2005 is upheld. No order as to costs.
Law Points
- Workmen's Compensation Act
- 1923
- Section 3
- Section 4
- Section 4A
- Interest
- Penalty
- Employer-Employee Relationship
- Insurance Liability
