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2023 Supreme(AP) 964

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. MANMADHA RAO, J.
Shriram General Insurance Company Limited – Petitioner
Versus
Manchala Rama Lakshumamma W/o Thirupathaiah – Respondent
Civil Miscellaneous Appeal No. 61 of 2018
Decided On : 14-12-2023

Advocates:
Advocate Appeared:
For the Petitioner: A. Jayanthi.

The main legal point established is the determination of liability under the Workmen’s Compensation Act based on the employment relationship and compliance with policy terms by the insurance company.

Headnote:

Workmen’s Compensation Act - Compensation Claim - Section 30 - Summary

Fact of the Case:

The claimants filed for compensation under the Workmen’s Compensation Act, 1923, for the death of an auto driver during the course of employment due to a fatal accident. The Commissioner awarded compensation to the claimants, holding the employer and the insurance company jointly and severally liable.

Finding of the Court:

The court found that the deceased was indeed working as an auto driver under the employer at the time of the accident, and the insurance company was liable to indemnify the employer. The court also modified the interest rate but confirmed the awarded compensation.

Issues: The issues included determining the employment relationship, validity of the driving license, calculation of minimum wages, and the rate of interest to be awarded.

Ratio Decidendi: The court relied on the evidence provided by the claimants and the insurance company's breach of policy terms to establish the employment relationship and liability. The court also referred to the minimum wages prescribed by the government and adjusted the interest rate based on prevailing bank rates.

Final Decision: The court confirmed the awarded compensation but reduced the interest rate, disposing of the appeal with no costs.

JUDGMENT :

K. MANMADHA RAO, J.

1. The present Civil Miscellaneous Appeal is filed under Section 30 of the Workmen’s Compensation Act, 1923 (for brevity “the Act”) aggrieved by the order dated 11.05.2017 passed in W.C.No. 20 of 2013 by the Assistant Commissioner of Labour, Kadapa (for short “the Commissioner”).

2. The Appellant herein is the Respondent No. 2/ Opposite Party No. 2 and the respondents No. 1 to 4 herein are the applicants/claimants and the respondent No. 5 herein is the Opposite Party No. 1 in W.C No. 20 of 2013. For sake of convenience, the parties are hereinafter referred to, as they are arrayed before the Commissioner.

3. The applicants have filed the impugned W.C.No. 20 of 2013 before the Commissioner claiming compensation of Rs.6,00,000/-.

4. Brief facts of the case are that the Opposite Party No. 1 is the registered owner of the auto bearing No. AP04 TU-1735 and the deceased Manchala Thirupathaiah was working as Auto driver under the Opposite Party No. 1 for the last two years prior to the accident and attending the said auto and that he was paid Rs.4,000/- per month besides batta of Rs.200/- per day. On the instructions of OP No. 1, on 21.12.2012 evening, while the deceased attended duty in between Vemaluru and Badvel for hire, at about 11,00 p.m., when the auto reached near Vemaluru cross road at a turning point near a tamarind tree the deceased lost control over the vehicle. As a result of which, the auto turned turtle, the deceased sustained serious fatal injuries. Immediately he shifted to RIMS hospital, Kadapa for treatment and on the next day i.e., on 22.12.2012 at 1.30 p.m. he succumbed to the injuries. On the complaint of brother of the deceased, a case in Cr.No. 66 of 2012 was registered by Atlur Police. Thus, the deceased died during the course of employment under OP No. 1. The deceased is having valid and effective driving licence to drove the auto. The applicants are depending upon the earnings of the deceased. Due to sudden death of the deceased, the claimants lost their source of income and love and affection. Therefore, both the Opposite Parties are jointly and severely liable to pay the compensation to the applicants.

5. The Opposite Party No. 2 filed counter before the Commissioner and denied all the allegations made in the petition including the age and avocation of the deceased, the manner of accident and the income of the deceased. It is further stated that the applicants have to prove that the deceased was working under the employment of OP No. 1 and that the policy was in force as on the date of the accident. Further, the claimants are required to prove that the deceased succumbed to injuries while undergoing treatment at RIMS, Kadapa, by way of documentary proof such as FIR, Inquest, P.M. Certificate, Charge sheet or final report. The applicants have not informed about the accident and the death of the deceased. There is no relationship of employee and employer in between the deceased and OP No. 1. The age and income of the deceased are also denied the finally sought for dismissal of claim against OP No. 2.

6. During course of trial, on behalf of the applicants, AW.1 was examined and Ex.A1 to Ex.A7 were marked. On behalf of the Opposite parties, RW.1 and RW.2 were examined and got marked Ex.B1 to Ex.B3 and Ex.X1 and Ex.X2.

7. The learned Commissioner, after hearing on both sides passed an order holding that both the Opposite Parties are jointly and severally liable to deposit an amount of Rs.5,39,337/- compensation besides Stamp duty of Rs.1,079/-with interest at 12% p.a. from the date of accident till its realization by means of D.D drawn in favour of Commissioner for Workmen Compensation and Joint Commissioner for Labour, Kurnool drawn on State Bank of India, Kurnool, within 30 days from the date of receipt of the order and also held that if they have failed to deposit the awarded amount within the stipulated time, they have to pay penalty under Section 4(A) 3(b) of the Workmen’s Compensati

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