High Court of Karnataka Allows Employer's Appeal in Employee Compensation Case — Injury After Work Hours Not in Course of Employment. The court held that an accident occurring after the workman had left the workplace and outside working hours does not arise out of and in the course of employment under Section 3 of the Employee's Compensation Act, 1923, reversing the Commissioner's award.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The appellant, Ganesha, proprietor of Ganesha Engineering Works, challenged the judgment and award dated 29.11.2021 passed by the Senior Civil Judge and Commissioner under the Employee's Compensation Act, 1923 (Commissioner) in ECA No.1/2019, which awarded compensation of Rs.7,49,056/- with interest at 12% p.a. to the respondent, Rahamathulla, a workman. The respondent claimed that on 20.12.2018, while returning from work at about 8:30 p.m., he was hit by a vehicle near a petrol bunk, sustaining injuries. He alleged that the accident arose out of and in the course of his employment. The appellant denied the claim, asserting that the respondent had left the workshop at 6:00 p.m. and the accident occurred later at a different location, not in the course of employment. The Commissioner, relying on the respondent's testimony and the absence of contrary evidence, held that the accident occurred during the course of employment and awarded compensation. The appellant appealed under Section 30(1) of the Act. The High Court examined the evidence, noting that the respondent himself admitted in cross-examination that he had left the workshop at 6:00 p.m. and the accident occurred at 8:30 p.m. near a petrol bunk, which was not on the direct route from the workshop to his residence. The court held that the injury did not arise out of and in the course of employment, as the workman was not under the employer's control or performing any duty at the time. The Commissioner's finding was perverse and based on no evidence. The court allowed the appeal, set aside the impugned judgment and award, and dismissed the claim petition. No order as to costs.

Headnote

A) Employee Compensation - Course of Employment - Section 3 Employee's Compensation Act, 1923 - Injury after work hours and away from workplace - The workman alleged injury while returning from work, but evidence showed he had left the workshop earlier and the accident occurred at 8:30 p.m. near a petrol bunk, not on the direct route. The court held that the injury did not arise out of and in the course of employment as the workman was not under the employer's control or performing any duty at the time. The Commissioner's finding was perverse and based on no evidence. (Paras 6-10)

B) Employee Compensation - Burden of Proof - Section 3 Employee's Compensation Act, 1923 - The claimant must prove that the accident arose out of and in the course of employment. Mere presence on the road after work hours does not satisfy the requirement. The court found that the workman failed to discharge this burden, and the Commissioner erred in shifting the burden to the employer. (Paras 8-10)

C) Employee Compensation - Perverse Finding - Section 30(1) Employee's Compensation Act, 1923 - The appellate court can interfere if the finding of the Commissioner is perverse or based on no evidence. Here, the Commissioner's conclusion that the accident occurred during the course of employment was unsupported by evidence and contrary to the workman's own testimony. (Paras 9-10)

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Issue of Consideration

Whether the injury sustained by the respondent-workman on 20.12.2018 at 8:30 p.m. near a petrol bunk, after leaving the appellant's workshop, arose out of and in the course of his employment under Section 3 of the Employee's Compensation Act, 1923.

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Final Decision

The appeal is allowed. The impugned judgment and award dated 29.11.2021 passed in ECA No.1/2019 by the Senior Civil Judge and Commissioner under the Employee's Compensation Act, 1923, Hunsur, is set aside. The claim petition in ECA No.1/2019 is dismissed. No order as to costs.

Law Points

  • Employer's liability under Employee's Compensation Act
  • 1923
  • Section 3 requires injury to arise out of and in the course of employment
  • accident occurring after work hours and away from workplace is not in the course of employment
  • burden of proof on claimant to establish nexus
  • no vicarious liability for acts outside employment scope.
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Case Details

2025 LawText (KAR) (12) 42

MFA No. 755 of 2022 (ECA)

2025-12-12

Umesh M Adiga

Sri. Mohana Chandra P. for appellant, Sri. Abubacker Shaji for respondent

Ganesha

Rahamathulla

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Nature of Litigation

Appeal under Section 30(1) of the Employee's Compensation Act, 1923 against the judgment and award of the Commissioner awarding compensation to the workman.

Remedy Sought

The appellant (employer) sought to set aside the Commissioner's award and dismiss the claim petition.

Filing Reason

The appellant contended that the injury sustained by the respondent did not arise out of and in the course of employment, as the accident occurred after work hours and away from the workplace.

Previous Decisions

The Commissioner (Senior Civil Judge and JMFC, Hunsur) in ECA No.1/2019 awarded compensation of Rs.7,49,056/- with interest at 12% p.a. from the date of accident till deposit.

Issues

Whether the injury sustained by the respondent on 20.12.2018 at 8:30 p.m. near a petrol bunk arose out of and in the course of his employment under Section 3 of the Employee's Compensation Act, 1923. Whether the finding of the Commissioner that the accident occurred during the course of employment is perverse and based on no evidence.

Submissions/Arguments

Appellant argued that the respondent had left the workshop at 6:00 p.m. and the accident occurred at 8:30 p.m. near a petrol bunk, not on the direct route home, thus not in the course of employment. Respondent argued that he was returning from work and the accident occurred while he was on his way home, which is in the course of employment.

Ratio Decidendi

For an injury to be compensable under Section 3 of the Employee's Compensation Act, 1923, it must arise out of and in the course of employment. An accident occurring after the workman has left the workplace and outside working hours, at a location not on the direct route from work to home, does not satisfy this requirement. The burden of proof is on the claimant to establish the nexus, and the Commissioner's finding must be based on evidence; a perverse finding can be interfered with in appeal.

Judgment Excerpts

The workman himself has admitted in his cross-examination that he had left the workshop at 6:00 p.m. and the accident occurred at 8:30 p.m. near a petrol bunk, which is not on the direct route from the workshop to his residence. The injury sustained by the respondent does not arise out of and in the course of his employment. The finding of the Commissioner to the contrary is perverse and based on no evidence.

Procedural History

The respondent filed ECA No.1/2019 before the Senior Civil Judge and Commissioner under the Employee's Compensation Act, 1923, Hunsur, claiming compensation for injuries sustained on 20.12.2018. The Commissioner passed judgment and award on 29.11.2021, awarding Rs.7,49,056/- with interest. The appellant filed MFA No.755/2022 under Section 30(1) of the Act before the High Court of Karnataka. The appeal was heard and reserved on 05.11.2025, and judgment pronounced on 12.12.2025.

Acts & Sections

  • Employee's Compensation Act, 1923: 3, 30(1)
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