Case Note & Summary
The case involves an appeal under Section 30 of the Employees' Compensation Act, 1923, filed by the legal heirs of deceased Maroti Misal against the Judgment and Award dated 25.07.2023 passed by the Commissioner under the Employees' Compensation Act and Labour Court, Buldhana, in WCA No. 8/2019. The claimants, being the widow, minor son, and parents of the deceased, sought compensation for his death. The deceased was employed at an explosive godown owned and controlled by Respondent No. 1 (Raju Ramdas Dukare), with Respondent No. 2 (Kaluram Punaram Choudhary) acting as Manager/Supervisor for day-to-day affairs. On 27.04.2019, while performing duties inside the godown, a massive explosion occurred, causing instantaneous death. An FIR was lodged on 03.05.2019. The Commissioner awarded compensation of Rs.8,47,160/- only against Respondent No. 2, exonerating Respondent No. 1. The appellants challenged this, arguing that the employer is vicariously liable. The High Court allowed the appeal, holding that the employer, being the owner and controller, is jointly and severally liable with the manager. The court set aside the exoneration of Respondent No. 1 and directed both respondents to pay the compensation amount jointly and severally.
Headnote
A) Employees' Compensation Act, 1923 - Section 30 - Appeal against award - Joint liability of employer and manager - The appeal challenged the award of compensation only against the manager, exonerating the employer. The court held that the employer, being the owner and controller of the explosive godown, is vicariously liable for the death of the worker, as the manager was engaged to manage day-to-day affairs. The employer cannot escape liability by delegating duties to a manager. (Paras 1-3)
B) Employees' Compensation Act, 1923 - Section 3 - Employer's liability for accident arising out of and in the course of employment - The deceased worker died in a massive explosion while performing duties inside the explosive godown. The court held that the accident arose out of and in the course of employment, and both the employer and manager are jointly and severally liable to pay compensation. (Paras 2-3)
Issue of Consideration
Whether the Commissioner under the Employees' Compensation Act erred in exonerating the employer (Respondent No. 1) from liability and holding only the manager (Respondent No. 2) liable for compensation for the death of a worker in an explosion at an explosive godown.
Final Decision
The High Court allowed the appeal, set aside the impugned Judgment and Award dated 25.07.2023 to the extent it exonerated Respondent No. 1, and directed that both Respondent No. 1 and Respondent No. 2 are jointly and severally liable to pay the compensation amount of Rs.8,47,160/- to the appellants. The respondents were directed to deposit the amount within a specified period.
Law Points
- Joint liability of employer and manager under Employees' Compensation Act
- 1923
- Section 30 appeal
- vicarious liability
- employer's duty to ensure safety
- manager's control over day-to-day affairs
Case Details
First Appeal No. 393 of 2024
Mr. P.N. Varma for the Appellants. None appeared for the Respondent no.1 and 2.
Smt. Vandana Maroti Misal, Sarthak Maroti Misal (minor through guardian), Sau. Tulsabai Gajanan Misal, Gajanan Tryambak Misal
Raju Ramdas Dukare, Kaluram Punaram Choudhary
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Nature of Litigation
Appeal under Section 30 of the Employees' Compensation Act, 1923 against an award of compensation by the Commissioner under the Employees' Compensation Act and Labour Court, Buldhana.
Remedy Sought
The appellants (legal heirs of deceased Maroti Misal) sought to set aside the award exonerating Respondent No. 1 (employer) and to hold both respondents jointly and severally liable for compensation.
Filing Reason
The Commissioner awarded compensation only against Respondent No. 2 (manager) and exonerated Respondent No. 1 (employer), which the appellants challenged as erroneous.
Previous Decisions
The Commissioner under the Employees' Compensation Act and Labour Court, Buldhana passed the Judgment and Award dated 25.07.2023 in WCA No. 8/2019, awarding Rs.8,47,160/- only against Respondent No. 2 and exonerating Respondent No. 1.
Issues
Whether the Commissioner erred in exonerating the employer (Respondent No. 1) from liability for compensation under the Employees' Compensation Act, 1923.
Whether the employer and manager are jointly and severally liable for the death of the worker arising out of and in the course of employment.
Submissions/Arguments
The appellants argued that the deceased was employed at the explosive godown owned and controlled by Respondent No. 1, and Respondent No. 2 was engaged as manager. The accident occurred during the course of employment, and the employer is vicariously liable for the acts of the manager. The Commissioner erred in exonerating Respondent No. 1.
Ratio Decidendi
Under the Employees' Compensation Act, 1923, an employer who owns and controls the workplace is vicariously liable for the death of a worker arising out of and in the course of employment, even if day-to-day management is delegated to a manager. The employer cannot escape liability by delegating duties; both employer and manager are jointly and severally liable.
Judgment Excerpts
This is an appeal under Section 30 of the Employees’ Compensation Act, challenging the Judgment and Award dated 25.07.2023 passed in WCA No. 8/2019 by the learned Commissioner under the Employees’ Compensation Act and Labour Court, Buldhana, whereby compensation of Rs.8,47,160/- was awarded only against Respondent No. 2 but exonerated the Respondent no.1.
It is the case of the claimants that, they are the legal heirs of deceased Maroti Misal, who was working at an explosive godown. The said godown was owned and controlled by Respondent No. 1, whereas Respondent No. 2 was engaged as a Manager/Supervisor by Respondent no. 1 for day-to-day affairs and stock management of the godown.
Procedural History
The claimants filed WCA No. 8/2019 before the Commissioner under the Employees' Compensation Act and Labour Court, Buldhana, seeking compensation for the death of Maroti Misal. The Commissioner passed the Judgment and Award on 25.07.2023, awarding compensation only against Respondent No. 2 and exonerating Respondent No. 1. The claimants appealed under Section 30 of the Employees' Compensation Act before the High Court of Bombay at Nagpur, which reserved judgment on 27.04.2026 and pronounced on 06.05.2026.
Acts & Sections
- Employees' Compensation Act, 1923: Section 30, Section 3
