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2026 Supreme(SC) 12

SUPREME COURT OF INDIA
VIKRAM NATH, AUGUSTINE GEORGE MASIH, JJ.
Panganti Vijaya – Appellant(s)
Versus
United India Insurance Company Ltd. & Ors. – Respondent(s)
Civil Appeal No. of 2026 (Arising out of SLP (C) No. 15218 of 2024)
Decided On : 05-01-2026

Advocates appeared:
For the Petitioner(s): Mr. P. Venkat Reddy, Adv. Mr. Prashant Kumar Tyagi, Adv. Mr. P. Srinivas Reddy, Adv. M/s Venkat Palwai Law Associates, AOR
For the Respondent(s): Mr. Lalit Chauhan, Adv. Ms. Laxmi Chauhan, Adv. Mr. Anith Johnson, Adv. Ms. Khushi Sehrawat, Adv. Ms. Mrinal Gopal Elker, AOR Mr. Parnam Prabhakar, Adv. Mr. Tarun Chauhan, Adv. Mr. Manoj C. Mishra, AOR Mr. Chandan Kumar, Adv.

IMPORTANT POINT
Death in course of employment – Finding of fact recorded by Commissioner to the effect that deceased was employee of owner of vehicle which met with accident, cannot be interfered with by High Court.

Headnote:

Workmen’s Compensation Act, 1923 – Section 10 – Death in course of employment – High Court allowed appeal and set aside order of Commissioner, awarding compensation of Rs. 3,73,747/- along with 12% interest – Finding recorded by Commissioner was based on correct appreciation of evidence and did not suffer from perversity or legal infirmity – Commissioner had considered in addition to other material on record, evidence of owner who had specifically stated that deceased was in his employment since prior to date of accident – Based on such consideration, finding of fact was recorded to the effect that deceased was employee of owner of vehicle which met with accident – Claim of appellant was rightly allowed by Commissioner and interference by High Court was unwarranted – Judgment and order of High Court set aside and award passed by Commissioner for Workmen’s Compensation restored. (Paras 6, 8 and 9)

Facts of the case:

Appellant is aggrieved by the final judgment and order dated 22.03.2022 passed by High Court for the State of Telangana at Hyderabad in CMA No. 98 of 2010 whereby High Court allowed appeal filed by Insurer and set aside the award dated 30.04.2009 passed by Commissioner for Workmen’s Compensation and Deputy Commissioner of Labour, Nizamabad in WC No. 1 of 2005 awarding compensation to the appellant.

Findings of Court:

The appellant is hereby permitted to withdraw the rest of the amount with accrued interest lying in deposit with High Court. Registrar General of High Court of Telangana shall ensure that amount is released within four weeks of the filing of this order before the Registry.

Result : Appeal allowed.

Judgement Key Points

The legal document details a case involving a claim for compensation under the Workmen’s Compensation Act, 1923, following a fatal accident involving a vehicle. The core issues revolve around whether the deceased was employed by the owner of the vehicle at the time of the accident and whether the death occurred during the course of employment.

Key points include:

  • The Commissioner’s finding that the deceased was employed by the vehicle owner prior to the accident, which was supported by evidence including the owner’s admission during cross-examination (!) (!) (!) (!) .
  • The High Court’s decision to set aside the award based on its interpretation that there was no employer-employee relationship, which was later found to be erroneous (!) (!) (!) .
  • The respondent’s failure to appear and subsequent admission of employment during proceedings, which reinforced the original finding of employment (!) (!) .
  • The Court’s conclusion that the death occurred in the course of employment and that the claim was rightly allowed, leading to the restoration of the original award and compensation amount (!) (!) .
  • The procedural aspect that the awarded compensation had already been deposited and that the appellant could withdraw the remaining amount (!) .

Overall, the case emphasizes the importance of thorough evidentiary evaluation in establishing employment relationships and the correctness of factual findings made by the Commissioner, which should not be disturbed unless legally infirm or perverse.


JUDGMENT

VIKRAM NATH, J.

1. Leave granted.

2. The appellant is aggrieved by the final judgment and order dated 22.03.2022 passed by the High Court for the State of Telangana at Hyderabad in CMA No. 98 of 2010 whereby the High Court allowed the appeal filed by the insurer and set aside the award dated 30.04.2009 passed by the Commissioner for Workmen’s Compensation and Deputy Commissioner of Labour, Nizamabad in WC No. 1 of 2005 awarding compensation to the appellant.

3. The facts giving rise to the present appeal are as follows:

3.1. The deceased, Panganti Suresh, was employed by the fifth respondent as a driver on a monthly salary of Rs.3,500/- per month.

3.2. On 10.09.2004 at 5:30 a.m., while driving the car bearing No. AP-15L-4000 back from Hyderabad, Suresh met with a fatal accident when a lorry coming from the opposite direction rammed into the vehicle. Out of the four people in the car, two of them including Suresh, succumbed to the injuries.

3.3. Thereafter, the appellant being the legal representative of the deceased, filed a claim under the Workman’s Compensation Act, 1923 stating that the deceased was employed as a driver of the fifth respondent and that the accident occurred during and in the course of employment.

3.4. The owner of the vehicle, Sathyanarayanan, respondent No. 5 herein, in his counter-affidavit denied that the deceased was under his employment. Later, in his cross-examination and re-examination, he admitted the fact that the deceased was employed under him. He further admitted that the oversight was out of confusion since the accident happened on the very next day after the deceased was employed.

3.5. Relying on the oral and documentary evidence, the Commissioner by order dated 30.04.2009 recorded a finding that the deceased was employed as a driver with respondent No. 5 and the accident occurred during and in the course of employment. Accordingly, joint and several liability was fixed. The Insurance Company and the owner of the vehicle were directed to pay the compensation of Rs. 3,73,747/- along with interest at the rate of 12% p.a. to the appellant.

3.6. The Insurance Company challenged the order in CMA No. 98/2010 before the High Court. By order dated 22.03.2023, the High Court allowed the appeal and set aside the order of the Commissioner.

4. Upon hearing the learned counsel for the parties and perusing the material placed on record, we are of the opinion that the view expressed by the High Court is erroneous and deserves to be set aside.

5. The High Court, relying on the earlier counter-affidavit filed by respondent No. 5 erroneously recorded the fact that there was no employer-employee relationship between the deceased and the owner of the vehicle. It also wrongly recorded the fact that the FIR was filed by the appellant No. 1, wife of the deceased, whereas it was actually lodged by Rajamani, the wife of the other deceased.

6. The finding recorded by the Commissioner was based on a correct appreciation of evidence and did not suffer from perversity or legal infirmity. The Commissioner had considered in addition to the other material on record, the evidence of the owner who had specifically stated that the deceased was in his employment since prior to the date of the accident. Based on such consideration, finding of fact was recorded to the effect that the deceased was an employee of the owner of the vehicle which met with the accident.

7. Before us, respondent No. 5 failed to enter appearance despite service of notice. This Court was, therefore, constrained to issue bailable warrants and, thereafter, non-bailable warrants to secure his presence. Pursuant thereto, the respondent No. 5 appeared before this Court and filed an affidavit on oath, wherein he unequivocally admitted that deceased Suresh was under his employment @ Rs. 3,500/- per month and Rs. 50 per day batta. He also admitted that his denial of factum of employment in the counter-affidavit placed before the Commissioner was to avoid civil liabilit

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