High Court Allows Appeal, Holds Insurance Company Liable for Compensation in Driver's Death During Temporary Stop at Check Post Under Employees Compensation Act

Sub Category: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The High Court allowed appeal filed by dependents of deceased driver against exoneration of Insurance Company from liability -- Deceased was driving lorry from Hyderabad to Bengaluru when he stopped at Sales Tax check post -- While standing on footpath, he was hit by unknown lorry and died -- Trial Court held accident did not occur during course of employment as deceased was not in vehicle -- High Court reversed this finding, holding temporary stoppage for payment of road tax was work-related and part of employment -- Relying on precedent, Court held accident occurred during use of motor vehicle in course of employment -- Insurance Company directed to pay compensation of Rs.14,50,000/- as claimed

Headnote

The High Court of Karnataka at Bengaluru allowed Miscellaneous First Appeal filed under Section 30(1) of Employees Compensation Act, 1923 -- The appeal challenged award dated 09.12.2019 passed by VII Additional Judge and ACMM, Court of Small Causes, MACT-3, Bengaluru in ECA No.75/2017 -- The Trial Court had awarded compensation but exonerated Insurance Company holding deceased was not performing duty when standing on footpath -- High Court reversed this finding relying on Smt. Premila and Others vs. Shaliwan and another (2005 SCC OnLine Kar 197) -- Held that temporary stoppage for work-related reasons does not suspend employment relationship -- Accident occurred during use of motor vehicle in course of employment -- Insurance Company directed to pay compensation -- Judgment delivered by Hon'ble Ms. Justice Tara Vitasta Ganju on 19 January 2026

Issue of Consideration: Whether stopping of vehicle temporarily during journey performed in course of employment would be such that accident would be deemed to be not caused during use of motor vehicle

Final Decision

Appeal allowed -- Impugned award modified -- Insurance Company held liable to pay compensation -- Matter remanded to Trial Court for quantification if necessary

2026 LawText (KAR) (01) 40

Miscellaneous First Appeal No.3065 of 2020 (ECA)

2026-01-19

Tara Vitasta Ganju J.

HC-KAR NC: 2026:KHC:2531

Sri. A.K. Bhat for Appellants, Sri. H.S. Lingaraj for Respondent No.2

Smt. Ramakka, Sri. Manjunatha, Kum. K Sudha

Sri. V. Hari Das, M/s IFFCO Tokio General Insurance Company Ltd.

Nature of Litigation: Appeal against award under Employees Compensation Act, 1923

Remedy Sought

Appellants sought direction to Insurance Company to pay compensation of Rs.14,50,000/-

Filing Reason

Trial Court awarded compensation but exonerated Insurance Company holding accident did not occur during course of employment

Previous Decisions

Trial Court held deceased entitled to compensation but dismissed petition against Insurance Company

Issues

Whether accident occurred during course of employment when driver had temporarily stopped vehicle and was standing on footpath

Submissions/Arguments

Appellant argued deceased was performing duty even while standing on footpath at check post -- Respondent argued accident did not occur while performing duty as deceased was not in vehicle

Ratio Decidendi

Temporary stoppage of vehicle during employment journey for work-related reasons does not suspend employment relationship -- Accident occurring during such temporary stop is in course of employment and during use of motor vehicle -- Insurance liability attaches under statutory policy

Judgment Excerpts

"The facts categorically indicate that the vehicle was stopped temporarily by the driver for a short period for attending to calls of nature. The assignment of work of transportation from Hyderabad to Bidar was not yet complete. The deceased driver was very much on duty." "The presence of the driver at the accident spot is directly attributable to the use of the motor vehicle. Otherwise, there is no occasion for the deceased to be present at the spot." "The deceased was clearly not present on the road for any other reason except for the fact that he was driving the vehicle from Hyderabad to Bengaluru on behalf of the respondent No.1 owner and during the course of his employment."

Procedural History

Claim petition filed before MACT -- Trial Court passed award on 09.12.2019 -- Appeal filed before High Court under Section 30(1) of Employees Compensation Act, 1923 -- High Court heard arguments and delivered judgment on 19.01.2026

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