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1994 Supreme(AP) 430

Andhra Pradesh High Court
Judges : N.D.PATNAIK
United India Insurance Company Ltd. - Appellant
Versus
Shaik Alimuddin - Respondent
Decided On : 09-22-94

The Commissioner for Workmen's Compensation has jurisdiction to entertain an application and award compensation only for accidents that occur within the area for which he is appointed.

Headnote:

WORKMEN'S COMPENSATION - JURISDICTION - SECTION 21(1) OF THE WORKMEN'S COMPENSATION ACT, 1923 - ACCIDENT OCCURRING IN BOMBAY - COMMISSIONER FOR WORKMEN'S COMPENSATION, HYDERABAD, LACKS JURISDICTION TO ENTERTAIN APPLICATION AND AWARD COMPENSATION - LACK OF INHERENT JURISDICTION - OBJECTION CAN BE RAISED IN APPEAL EVEN IF NOT TAKEN BEFORE LOWER TRIBUNAL.

Fact of the Case:

An employee of a lorry met with an accident in Bombay. The employee's son filed an application before the Commissioner for Workmen's Compensation, Hyderabad, claiming compensation for the death of his son. The Commissioner awarded compensation, penalty, and interest to the employee's son.

Finding of the Court:

The Commissioner for Workmen's Compensation, Hyderabad, lacked jurisdiction to entertain the application and award compensation since the accident occurred in Bombay. The objection regarding lack of jurisdiction can be raised in the appeal even if not taken before the lower Tribunal.

Issues: 1. Whether the Commissioner for Workmen's Compensation, Hyderabad, had jurisdiction to entertain the application and award compensation for an accident that occurred in Bombay? 2. Whether the objection regarding lack of jurisdiction can be raised in the appeal even if not taken before the lower Tribunal?

Ratio Decidendi: 1. Section 21(1) of the Workmen's Compensation Act, 1923, provides that any matter under the Act shall be done by or before a Commissioner for the area in which the accident took place. Since the accident occurred in Bombay, the Commissioner for Workmen's Compensation, Hyderabad, lacked jurisdiction to entertain the application and award compensation. 2. Even though the objection regarding lack of jurisdiction was not taken before the lower Tribunal, it can be raised in the appeal since it is a case of inherent lack of jurisdiction.

Final Decision: The order of the Commissioner for Workmen's Compensation, Hyderabad, awarding compensation, penalty, and interest is set aside.

N. D. PATNAIK, J.

( 1 ) THIS appeal is filed against the order of the Commissioner for Workmen s Compensation, Hyderabad dated 31-7-1992 in W. C. No. 60/91. That application was filed by the 1st respondent herein claiming compensation for the death of his son Saleem Aleem Shaik, Cleaner of a lorry No. ABT 5301, together with penalty and interest, That was filed against Sri Shaik Mahmood, the owner of the lorry, who is the 2nd respondent in this appeal and the United India Insurance Co. Ltd. , who is the appellant. The learned Commissioner for Workmen s Compensation, passed the order awarding compensation of Rs. 73,132. 80 paise together with penalty of 50% and interest at 6% and costs. Aggrieved by that the appellant who is the 2nd respondent before the Commissioner for Workmen s Compensation field this appeal contending that the Commissioner has no territorial jurisdiction to entertain the application and to pass the order, since the accident took place at Bombay.

( 2 ) BEFORE considering the contentions of the appellant, I will refer to the preliminary objection taken by the contesting 1st respondent in the appeal that the appeal is not maintainable on the ground that the amount awarded was not deposited.

( 3 ) SECTION 30 (1) of the Workmen s Compensation Act reads : 30 (1) An appeal shall lie to the High Court from the following orders of a Commissioner, namely - (a) An order awarding as compensation a lump sum whether by way of redemption of a half-monthly payment of otherwise of disallowing a claim in full or in part of a lump sum : (aa) an order awarding interest or penalty under Section 4-A (b ). . . . . . . . . . (c ). . . . . . . . . (d ). . . . . . . . . . (e ). . . . . . . . . The third proviso to the said sub-section reads : "provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealed against.

( 4 ) THE appellant has deposited before the Commissioner, the amount of compensation of Rs. 73,132. 80 at the time of filling the appeal; but did not deposit the penalty and interest. The contention of the learned counsel for the respondent is that the appellant had not deposited the entire amount as ordered by the Commissioner as such there is no compliance with the aforesaid proviso to Sub-section (1) of Section 30 of the Act and so the appeal is not maintainable. On the other hand, the learned Counsel for the appellant contended that the Insurance Company end not pay the penalty and interest and therefore the amount was not deposited and that there is no force in the contention of the learned Counsel for the respondent that the appeal is not maintainable.

( 5 ) IN support of this contention, the learned Counsel for appellant railed upon some decisions. A Division Bench of the Karnataka High Court in a case reported in Kap Steel Ltd. v. R. Sasikala, 1990 II CLR 325, held that "depositing of the amount of interest or penalty imposed under Section 4-A of the Act in addition to the compensation awarded or otherwise is not a condition for preferring an appeal under Section 30 (1) of the Act". Reference was also made to a decision of the learned single Judge of the Orissa High Court in Oriental Fire and General Insurance Company v. Matias Burla, 1986 ACJ 732 Orissa, to the effect that the provision in Section 4-A for levying penalty and interest can be invoked only against the employer but not again the insurer. He has also referred to a decision of the Division Bench of the Karnataka High Court in Oriental Insurance Co. Ltd. v. Jevaramma, 1989 I CLR 228 in which it is held that the Insurance Company is liable to meet only the compensation payable for the risk covered and not the penalty.

( 6 ) IN the case reported in Oriental Insurance Co. Ltd. v. Hasmat Khatoon, 1989 ACJ 862 Delhi, the Delhi High Court held that the Insurance Compa













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