High Court of Karnataka Dismisses Insurer's Appeal in Employee Compensation Case — Employer-Employee Relationship Established. New India Assurance Company Limited held liable to pay compensation under Section 30(1) of the Employees Compensation Act, 1923 for death of a workman arising out of and in the course of employment.

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

The appellant, New India Assurance Company Limited, filed an appeal under Section 30(1) of the Employees Compensation Act, 1923 against the judgment and award dated 06.04.2017 passed by the Additional Senior Civil Judge and JMFC cum Commissioner for Workmen's Compensation, Hosapete, in E.C.A.No.59 of 2014. The Commissioner had awarded compensation of Rs.6,45,400/- with interest at 12% per annum from the date of petition till deposit to the respondents No.1 to 5, who are the legal representatives of the deceased Rama Rao Naik. The deceased was a workman employed by respondent No.6 (M. Shiva Reddy) and respondent No.7 (Partner of M/s Unico Constructions, Engineers & Contractors) and died in an accident arising out of and in the course of his employment. The appellant-insurer contended that there was no employer-employee relationship between the deceased and respondents No.6 and 7, and that the deceased was an employee of respondent No.8 (Jindal Vijayanagara Steels Limited). The Commissioner, after considering the evidence, held that the deceased was an employee of respondents No.6 and 7 and that the accident occurred during the course of employment. The High Court, on appeal, examined the evidence and found that the Commissioner's findings were based on proper appreciation of evidence and were not perverse. The Court held that the burden to prove that there was no employer-employee relationship was on the insurer, which it failed to discharge. The appeal was dismissed, and the award of the Commissioner was confirmed.

Headnote

A) Workmen's Compensation - Employer-Employee Relationship - Burden of Proof - The Commissioner held that the deceased was an employee of respondent No.6 and 7 based on evidence, and the insurer failed to prove otherwise. The High Court affirmed that the burden to show absence of employer-employee relationship lies on the insurer. (Paras 5-10)

B) Workmen's Compensation - Appeal under Section 30(1) - Scope - The appeal under Section 30(1) of the Employees Compensation Act, 1923 is limited to substantial questions of law. The High Court found no perversity in the findings of fact recorded by the Commissioner. (Paras 3-4)

C) Workmen's Compensation - Interest - The Commissioner awarded interest at 12% per annum from the date of petition till deposit. The High Court upheld the award of interest. (Para 11)

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Issue of Consideration

Whether the Commissioner for Workmen's Compensation was justified in holding that the deceased was an employee of respondent No.6 and 7 and that the appellant-insurer is liable to pay compensation.

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Final Decision

The appeal is dismissed. The judgment and award dated 06.04.2017 passed in E.C.A.No.59 of 2014 by the Additional Senior Civil Judge and JMFC cum Commissioner for Workmen's Compensation, Hosapete, is confirmed.

Law Points

  • Employer-employee relationship
  • burden of proof
  • Workmen's Compensation Act
  • 1923
  • Section 30(1)
  • appeal against award
  • interest on compensation
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Case Details

2019 LawText (KAR) (06) 6

M.F.A.No.102270 of 2017 (ECA)

2019-06-28

P.G.M. Patil

Sri G.N. Raichur (for appellant), Sri Gururaj Turamari (for R-1 to R-5), Sri M.H. Patil (for R-6 & R-7), Sri V.M. Sheelavant (for R-8)

M/s. New India Assurance Company Limited

Smt. Lalitha Bai and others

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Nature of Litigation

Appeal under Section 30(1) of the Employees Compensation Act, 1923 against an award of compensation by the Commissioner for Workmen's Compensation.

Remedy Sought

The appellant-insurer sought to set aside the award of compensation passed by the Commissioner.

Filing Reason

The appellant-insurer disputed the employer-employee relationship between the deceased and respondents No.6 and 7, and contended that the deceased was an employee of respondent No.8.

Previous Decisions

The Commissioner for Workmen's Compensation, Hosapete, in E.C.A.No.59 of 2014, awarded compensation of Rs.6,45,400/- with interest at 12% p.a. from the date of petition till deposit.

Issues

Whether the Commissioner was justified in holding that the deceased was an employee of respondent No.6 and 7? Whether the appellant-insurer is liable to pay compensation?

Submissions/Arguments

The appellant argued that there was no employer-employee relationship between the deceased and respondents No.6 and 7, and that the deceased was an employee of respondent No.8. The respondents No.1 to 5 supported the award and contended that the findings of the Commissioner were based on evidence.

Ratio Decidendi

The burden of proof to show that there was no employer-employee relationship lies on the insurer. The Commissioner's findings of fact based on evidence are not to be interfered with in appeal under Section 30(1) unless perverse.

Judgment Excerpts

The Insurer New India Assurance Company Limited being aggrieved by the judgment and award dated 06.04.2017 passed in E.C.A.No.59 of 2014 by the Additional Senior Civil Judge and JMFC cum Commissioner for Workmen's Compensation, Hosapete, has filed this appeal. The Commissioner after considering the evidence on record held that the deceased was an employee of respondent No.6 and 7 and the accident occurred during the course of employment.

Procedural History

The Commissioner for Workmen's Compensation, Hosapete, passed an award in E.C.A.No.59 of 2014 on 06.04.2017 awarding compensation. The appellant-insurer filed an appeal under Section 30(1) of the Employees Compensation Act, 1923 before the High Court of Karnataka, Dharwad Bench, which was heard and reserved for judgment on 18.06.2019 and pronounced on 28.06.2019.

Acts & Sections

  • Employees Compensation Act, 1923: 30(1)
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