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2017 Supreme(SC) 895

SUPREME COURT OF INDIA
A.K. Sikri and Ashok Bhushan, JJ.
Firdaus - Petitioner
Versus
Oriental Insurance Co. Ltd. & Ors. - Respondents
Civil Appeal Nos. 9310 of 2017 (Arising from Special Leave Petition(s) No. 24702 of 2015)
Decided On : 14-07-2017

Advocates Appeared:
For the Petitioner:Shakil Ahmed Syed, Advocate.
For the Respondents:Dr. Nafis A. Siddiqui, Amit Anand Tiwari, Advocates.

Headnote:Workmen's Compensation Act, 1923–Section 3Motor Vehicles Act, 1988–Section 157–Death in course of employment–Compensation of Rs.4,27,148/- alongwith 12% interest awarded by Commissioner–Reversal of award by High Court–Whenever a vehicle which is covered by insurance policy is transferred to a transferee, liability of insurer does not cease so far as third party/victim is concerned, even if owner or purchaser does not give any intimation as required under provisions of the Act–Certificate of insurance and policy described in certificate shall be deemed to have been transferred in favour of person to whom motor vehicle is transferred with effect from the date of transfer–Judgment and order of High court set aside and that of Workmen Compensation Commissioner awarding compensation restored. (Paras 12 to 17)

       2003 (3) SCC 97–Applied.

JUDGMENT :

Ashok Bhushan, J.

Leave granted.

2. This appeal has been filed against the judgment of the High Court of Judicature at Allahabad, dated 12.12.2014 in First Appeal from Order No.2337 of 2005 filed by the respondent - Oriental Insurance Co. Ltd., challenging the award passed by the Workmen Compensation Commissioner, awarding a sum of Rs. 4,27,148/- (Rupees Four Lakhs Twenty Seven Thousand One Hundred and Forty Eight Only) along with interest of 12% per annum to claimants. The brief facts of the case are:

3. On 01st September, 2003, Parvez Khan, the husband of appellant was driving the vehicle No.HR-2 G 1875 while going to Rampur from Hapur. The vehicle was hit by a truck bearing No.UP 22 C-9714 coming from the opposite side and due to the accident, Parvez Khan died on the spot. Abdul Khalid, the father of deceased filed a claim for compensation before the Commissioner, Workmen Compensation, claiming an amount of Rs. 4,50,000/-(Rupees Four Lakhs Fifty Thousand Only) with 12% interest and also demanded 50% of that as penalty. Respondent nos.2 and 3 to the appeal were impleaded as defendant nos.1 and 2. The Oriental Insurance Co. Ltd. was impleaded as third defendant whereas Mohd. Anis was impleaded as fourth respondent-defendant. It was pleaded in the claim that Parvez Khan was an employee under the employment of defendant no.1, 2 and 4, who was getting Rs. 4,000/- (Rupees Four Thousand Only) as salary per month. All the defendants filed their counter affidavits. The case of defendant no.1 was that the vehicle No.HR-2 G 1875 was owned by defendant no.1 which he had sold out to defendant no.4.

4. It was accepted that the vehicle was insured with Oriental Insurance Co. Ltd. for the period from 06.11.2002 to 05.11.2003; thus at the time of accident the vehicle was insured with the Oriental Insurance Co. Ltd.

5. The Workmen Compensation Commissioner allowed the claim, awarding a sum of Rs. 4,27,148/- (Rupees Four Lakhs Twenty Seven Thousand One Hundred and Forty Eight Only) as compensation along with 12% interest per annum, aggrieved against which, the Oriental Insurance Co. Ltd. filed the first appeal from order in the High court.

6. The High court vide its judgment dated 12.12.2014 has set aside the award of the Workmen Compensation Commissioner and remanded the matter for fresh decision. The reason for remand has been mentioned by the High court in paragraph 6 of the judgment which is to the following effect:

"Since the claimant himself admitted that his son was employee of Mohd. Anis, therefore, it is proved that he was not the employee of defendant no.1 M/s Santosh Dental Hospital. In these circumstances, whether the Insurance Company, who has insured vehicle with the ownership of defendant no.1, was liable for payment of compensation, on this aspect nothing has been considered and the entire case has been considered only on the aspect that vehicle has been registered in the name of defendant no.1 and, therefore, Insurance Company is liable to pay compensation. The inter se relationship of employer and employee with defendant no.1 and deceased has not been considered and there is no discussion on this issue and whether in these circumstances the Insurance Company was liable to pay compensation, is another issue which has not been considered."

7. The wife of the claimant, who was one of the respondent in the High court, has come up in appeal against the judgment of the High court.

8. We have heard the counsel for the parties and perused the record.

9. Learned counsel for the appellant contends that their being no dispute that vehicle was insured with the Oriental Insurance Co. Ltd. on the date of accident, the Workmen Compensation Commissioner has rightly awarded the compensation against the Oriental Insurance Co. Ltd. It is submitted that no proof was filed by defendant no.1- M/s Santosh Dental Hospital (respondent No.2 herein) who had got the vehicle insured that he has transferred the vehicle to defendant no.4, but even if it i




















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