High Court of Karnataka Dismisses Insurance Company's Appeals in Workmen's Compensation Cases — Tractor-Trolley Accident Victims Awarded Compensation. Employer-Employee Relationship Established Despite Absence of Written Contract; Insurance Company Liable to Indemnify Owner Under Workmen's Compensation Act, 1923.

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

The case involves four appeals filed by the ICICI Lombard General Insurance Company against the common judgment and order dated 4/11/2008 passed by the Labour Officer and Commissioner for Workmen's Compensation, Koppal, in WC Nos. 371/2005, 369/2005, 372/2005, and 370/2005. The claimants, Honnursab, Balesab, Sashawali, and Siddiquesab, were hamals (loaders) who were engaged to load sugarcane onto a tractor-trolley owned by Sadique Ali. On the date of the accident, while they were sitting on the loaded sugarcane, the tractor-trolley overturned, causing injuries to the claimants. They filed claims for compensation under the Workmen's Compensation Act, 1923. The Commissioner awarded compensation ranging from Rs. 1,00,000 to Rs. 1,50,000, holding that the claimants were workmen of Sadique Ali and that the accident arose out of and in the course of employment. The insurance company appealed, arguing that there was no employer-employee relationship and that the claimants were not workmen. The High Court, after hearing the parties, held that the Commissioner had correctly appreciated the evidence. The claimants had deposed that they were engaged by Sadique Ali to load sugarcane and were paid wages. The owner did not contest the claim. The insurance company failed to produce any evidence to rebut the presumption of employment. The court found no perversity in the findings and dismissed the appeals, confirming the compensation awarded. The court also held that the insurance company is liable to indemnify the owner as the tractor-trolley was insured.

Headnote

A) Workmen's Compensation - Employer-Employee Relationship - Burden of Proof - The Commissioner held that the claimants, who were hamals loading sugarcane onto a tractor-trolley, were workmen of the owner, Sadique Ali, based on oral evidence and the fact that the accident occurred during the course of employment. The insurance company failed to rebut the presumption of employment. (Paras 1-5)

B) Workmen's Compensation - Insurance Liability - Indemnity - The insurance company is liable to indemnify the owner for compensation awarded under the Workmen's Compensation Act, 1923, as the tractor-trolley was insured and the accident arose out of and in the course of employment. (Paras 1-5)

C) Workmen's Compensation - Appeal - Section 30(1) - The appeals filed by the insurance company under Section 30(1) of the Workmen's Compensation Act, 1923, were dismissed as no substantial question of law arose. The findings of fact by the Commissioner were not perverse. (Paras 1-5)

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Issue of Consideration

Whether the Labour Officer and Commissioner for Workmen's Compensation erred in holding that the claimants were workmen under the owner of the tractor-trolley and in awarding compensation, and whether the insurance company is liable to indemnify the owner.

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Final Decision

All four appeals are dismissed. The judgment and order of the Commissioner for Workmen's Compensation, Koppal, dated 4/11/2008 are confirmed. No order as to costs.

Law Points

  • Workmen's Compensation Act
  • 1923
  • Section 30(1)
  • Employer-Employee Relationship
  • Burden of Proof
  • Insurance Liability
  • Tractor-Trolley Accident
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Case Details

2021 LawText (KAR) (07) 28

MFA NO.21076 OF 2009 C/W. MFA.NOs.21075/2009, 21077/2009, 21078/2009

2021-07-07

P. Krishna Bhat

S.K Kayakmath for appellant, M Amaregouda for respondent 1, Hanumanthreddy Sahukar for respondent 2

The Regional Manager, The ICICI Lombard General Insurance Co Ltd Mumbai through its Divisional Manager Hubli

Honnursab S/O Lebusab, Balesab S/O Gidda Hussainsab, Sashawali S/O Sadakalisab, Siddiquesab S/O Dastagirisab, and Sri Sadique Ali S/O Peersaheb

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Nature of Litigation

Appeals by insurance company against award of compensation under Workmen's Compensation Act.

Remedy Sought

Insurance company sought to set aside the Commissioner's order awarding compensation to the claimants.

Filing Reason

Insurance company disputed the employer-employee relationship and liability to pay compensation.

Previous Decisions

Labour Officer and Commissioner for Workmen's Compensation, Koppal, awarded compensation in WC Nos. 371/2005, 369/2005, 372/2005, and 370/2005 on 4/11/2008.

Issues

Whether the claimants were workmen under the owner of the tractor-trolley? Whether the insurance company is liable to indemnify the owner for compensation awarded?

Submissions/Arguments

Appellant (Insurance Company): The claimants were not workmen as there was no employer-employee relationship; they were casual loaders not under contract of service. Respondents (Claimants): They were engaged by the owner to load sugarcane and were paid wages; accident occurred during employment.

Ratio Decidendi

The Commissioner's finding that the claimants were workmen of the owner is based on evidence and not perverse. The insurance company failed to rebut the presumption of employment. Hence, the insurance company is liable to indemnify the owner.

Judgment Excerpts

These appeals are at the instance of the insurance company calling in question the correctness of the judgment and order dated 4/11/2008 passed by the Labour Officer and Commissioner for Workmen's Compensation, Koppal. The Commissioner has held that the claimants were workmen under the owner of the tractor-trolley and the accident arose out of and in the course of employment. I do not find any perversity in the appreciation of evidence by the Commissioner.

Procedural History

Claimants filed WC Nos. 371/2005, 369/2005, 372/2005, and 370/2005 before the Labour Officer and Commissioner for Workmen's Compensation, Koppal, which were allowed on 4/11/2008. Insurance company filed MFAs under Section 30(1) of the Workmen's Compensation Act, 1923, before the High Court of Karnataka, Dharwad Bench, which were dismissed on 7/7/2021.

Acts & Sections

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