High Court of Karnataka Dismisses Insurer's Appeal in Workmen's Compensation Case — Upholds Award for Driver Injured in Auto-Rickshaw Accident. Employer-Employee Relationship Established Despite Lack of Written Contract; Insurer Liable to Pay Compensation 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 an appeal by the United India Insurance Co. Ltd. against an award dated 08.06.2009 passed by the Labour Officer and Commissioner for Workmen's Compensation, Bellary, in W.C.A.No.66/2005. The claimant, Anjini alias Anjineya, was a driver of an auto-rickshaw bearing registration No.KA-35/4716 owned by Narasimha (respondent No.1) and insured with the appellant. On 15.10.2004 at 1.30 p.m., while driving the auto-rickshaw in Hosur village on SH-19, the vehicle met with an accident, causing fracture injuries to the claimant. A criminal case in Crime No.52/2004 was registered at Ramapur police station. The claimant filed a claim for compensation under the Workmen's Compensation Act, 1923. The Commissioner awarded compensation, holding that the claimant was a workman employed by the owner and that the insurer was liable. The insurer appealed under Section 30(1) of the Act, primarily arguing that there was no employer-employee relationship between the claimant and the owner. The High Court noted that the owner did not contest the claim and remained ex parte. The court observed that the Commissioner had considered the evidence, including the fact that the claimant was driving the vehicle under the owner's instructions, and concluded that the claimant was a workman. The court held that the burden to prove the absence of an employer-employee relationship was on the insurer, which it failed to discharge. The court found no perversity or error of law in the Commissioner's finding. Consequently, the appeal was dismissed, and the award was upheld.

Headnote

A) Workmen's Compensation - Employer-Employee Relationship - Burden of Proof - The claimant, a driver of an auto-rickshaw, sustained injuries in an accident. The Commissioner held that the claimant was a workman employed by the owner. The insurer appealed, arguing no employer-employee relationship. The High Court upheld the finding, noting that the owner did not contest the claim and the evidence showed the claimant was driving the vehicle under the owner's instructions. Held that the burden to prove absence of relationship was on the insurer, which was not discharged. (Paras 2-5)

B) Workmen's Compensation - Insurance Liability - Section 30(1) Workmen's Compensation Act, 1923 - The insurer challenged the award on the ground that the claimant was not a workman. The High Court found that the Commissioner's finding of fact was based on evidence and not perverse. The insurer failed to show any error of law. Held that the appeal was without merit and dismissed. (Paras 6-7)

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Issue of Consideration

Whether the Commissioner for Workmen's Compensation erred in holding that the claimant was a 'workman' under the Workmen's Compensation Act, 1923, and whether the insurer is liable to pay compensation.

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Final Decision

The appeal is dismissed. The award dated 08.06.2009 in W.C.A.No.66/2005 passed by the Labour Officer and Commissioner for Workmen's Compensation, Bellary Sub Division-II, Bellary, is upheld.

Law Points

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

2021 LawText (KAR) (07) 42

MFA NO.23037 OF 2009 (WC)

2021-07-02

P. Krishna Bhat

Sri. C V Angadi (for appellant), Sri. Manjunath G Patil (for respondent No.1)

Divisional Manager, United India Insurance Co. Ltd.

Sri. Anjini alias Anjineya and Sri. Narasimha

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Nature of Litigation

Appeal against award of compensation under Workmen's Compensation Act, 1923

Remedy Sought

Insurer sought to set aside the award dated 08.06.2009 in W.C.A.No.66/2005

Filing Reason

Insurer challenged the finding that claimant was a workman and liable to pay compensation

Previous Decisions

Commissioner for Workmen's Compensation, Bellary, awarded compensation on 08.06.2009

Issues

Whether the claimant was a 'workman' under the Workmen's Compensation Act, 1923? Whether the insurer is liable to pay compensation?

Submissions/Arguments

Appellant (Insurer) argued that there was no employer-employee relationship between the claimant and the owner. Respondent (Claimant) supported the award, contending that the Commissioner's finding was based on evidence.

Ratio Decidendi

The burden to prove absence of employer-employee relationship is on the insurer. The Commissioner's finding of fact, based on evidence, that the claimant was a workman, is not perverse and does not warrant interference under Section 30(1) of the Workmen's Compensation Act, 1923.

Judgment Excerpts

This is insurer’s appeal calling in question the legality of the award dated 08.06.2009 in W.C.A.No.66/2005 passed by the learned Labour Officer and Commissioner for Workmen’s Compensation, Bellary Sub Division-II, Bellary (for short “the Commissioner”). Brief facts are that the claimant was working as a driver of auto-rickshaw bearing registration No.KA-35/4716 owned by respondent No.1-Narasimha and insured with the present appellant. During the proceedings before the Commissioner, the owner of the vehicle did not contest the matter and he was placed ex parte. The Commissioner on consideration of the evidence on record came to the conclusion that the claimant was a workman employed under the owner of the vehicle and therefore, the insurer is liable to pay the compensation. The learned counsel for the appellant strenuously contended that there was no employer-employee relationship between the claimant and the owner of the vehicle. The burden to prove that there was no employer-employee relationship was on the insurer and the insurer has not discharged the said burden. In the result, the appeal is dismissed.

Procedural History

The claimant filed a claim under the Workmen's Compensation Act, 1923, before the Labour Officer and Commissioner for Workmen's Compensation, Bellary. The Commissioner passed an award on 08.06.2009 in W.C.A.No.66/2005, granting compensation. The insurer appealed to the High Court of Karnataka under Section 30(1) of the Act. The High Court dismissed the appeal on 02.07.2021.

Acts & Sections

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