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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
VENKATA JYOTHIRMAI PRATAPA, J.
Nidiganti Narasimhulu & Ors. - Appellants
Versus
Sri K. Suryanarayana & Ors. - Respondents
C.M.A. Nos. 995 of 2011 & 843, 862 of 2013 and 92 of 2014
Decided On : 10-05-2023
Workmen Compensation Act - Liability to pay interest - Section 30 - Section 4A(3)(a) - Section 4A(3)(b) - Section 4-A - Ved Prakash Garg etc. v Premi Devi and others, 1997 (8) SC 412 - Ajaya Kumar Das and another v Divisional Manager and Another, 2022 Live Law (SC) 102 - Saberabibi Yakubhai Shaikh v National Insurance company Limited (2014) 2 SCC 298 - P. Meenaraj v P. Adigurusamy and another, Civil Appeal No.209 of 2022 - Shobha v the Chairman, Vitthalrao Shinde (Civil Appeal No.1860 of 2022, dated 11.03.2022) - Kashibhai Rambhai Patel v Shanabhai Somabhai Parmar and others, 2000 SCC (L & S) 1105
Fact of the Case:
The claimants, parents of the deceased workmen, sought compensation for the untimely death of their sons in a work-related accident. The Commissioner awarded compensation and interest against the employer, exonerating the insurance company. The claimants appealed, arguing that the liability for interest should be fastened against the insurance company.
Finding of the Court:
The court found that the employer and the insurance company are jointly and severally liable to pay interest at 12% from the date of the accident till the date of realization.
Issues: The main issue was whether the liability to pay interest can be fastened against the insurance company under the Workmen Compensation Act.
Ratio Decidendi: The court relied on various judgments including Ved Prakash Garg etc. v Premi Devi and others, Ajaya Kumar Das and another v Divisional Manager and Another, Saberabibi Yakubhai Shaikh v National Insurance company Limited, P. Meenaraj v P. Adigurusamy and another, Shobha v the Chairman, Vitthalrao Shinde, and Kashibhai Rambhai Patel v Shanabhai Somabhai Parmar and others to establish that the employer and the insurance company are jointly and severally liable to pay interest at 12% from the date of the accident till the date of realization.
Final Decision: The Civil Miscellaneous Appeals were allowed, and each party was ordered to bear their own costs.
JUDGMENT :
1. These Civil Miscellaneous Appeals are directed under Section 30 of the Workmen Compensation Act against the Order dated 07.08.2009 in W.C.Nos.3, 6,5 and 4 of 2005 on the file of the Commissioner for Workmen’s Compensation & Deputy Commissioner of Labour, Anantapur.
Parties before the learned Commissioner:
2. The appellants herein were the Applicants and the respondents herein were the Opposite Party Nos.1 and 2 i.e., the Owner of the Tipper and the Insurance Company respectively before the learned Commissioner.
Reference of parties in the appeal:
3. For the sake of convenience and understanding, the parties are referred to as they were arrayed before the learned Commissioner.
4. In order to explain the facts and determine the issue involved in all these CMAs, this Court has taken C.M.A.No.995 of 2011 as these appeals are filed by the claimants, who are the parents of the deceased, who died in the same accident.
The case of the Applicants in CMA No.995 of 2011 in nutshell:
5. The applicants are the parents of the deceased Nidiganti Balanarasimhulu, S/o Nidiganti Narasimhulu, who died in the accident on 17.02.2004 at about 10.00 am. The deceased was working as a workman under the Opposite Party No.1 in his Tipper bearing No. KA 34 3300. On the instructions of the Opposite Party No.1, the deceased and some other workers went to attend Tar Road work between Pathipadu and Yellanur Road. As there was shortage of stone metal, all the workers went to the stone crusher of one Kullaiah Reddy at Kondapuram in the Tipper bearing No. KA 34 3300 belonging to the Opposite Party No.1 and got loaded tipper with stone metal and while they were returning to the work spot, the driver of the Tipper drove the vehicle in a rash and negligent manner. As a result of which, the tipper turned turtled. In the said accident, the deceased along with two others were died. A case in Cr.No.3 of 2004 was registered by the Kondapuram P.S., Kadapa District, against the driver of the tipper. The deceased was aged about 18 years and earning Rs.5,000/- per month as wages at the time of accident. Therefore, the applicants sought compensation of Rs.4,50,000/- for the untimely death of the deceased against the owner and insurance company.
The case of the Applicants in CMA No.843 of 2013 in nutshell:
The applicants are the parents of the deceased-Kolatam Suresh, who died in the accident on 17.02.2004 at about 10.00 am. The deceased Suresh was working as a workman under the Opposite Party No.1 in his tipper bearing No. KA 34 3300. After loading the tipper with stone metal at the stone crusher and while they were returned to the work spot, the accident occurred. In the said accident, the deceased along with three others were died. A case in Cr.No.3 of 2004 was registered by the Kondapuram P.S,, Kadapa District, against the driver of the tipper. The deceased was aged about 19 years and earning Rs.5,000/- per month as wages at the time of the accident. Therefore, the applicants sought compensation of Rs.4,50,000/- for the untimely death of the deceased against the owner and insurance company.
The case of the Applicants in CMA No.862 of 2013 in nutshell:
The applicants are the parents of the deceased-Chavula Narayana Swamy, who died in the accident on 17.02.2004 at about 10.00 am. The deceased Narayana Swamy was working as a workman under the Opposite Party No.1 in his tipper bearing No. KA 34 3300. After loading the tipper with stone metal at the stone crusher and while they were returned to the work spot, the accident occurred. In the said accident, the deceased along with three others were died. A case in Cr.No.3 of 2004 was registered by the Kondapuram P.S., Kadapa District, against the driver of the tipper. The deceased was aged 20 years and earning Rs.5,000/- per month as wages at the time of the accident. Therefore, the applicants sought compensation of Rs.4,50,000/- for the untimely death of the deceased against the owner and insurance company.
The case of the Appl
The main legal point established in the judgment is that the employer and the insurance company are jointly and severally liable to pay interest at 12% from the date of the accident till the date of ....
The insurance company is not liable for interest payments under the Workmen's Compensation Act; liability rests with the employer to pay compensation and associated interest.
The insurance company is liable for compensation under the Workmen’s Compensation Act when an employee-employer relationship is established, regardless of the driver's licensing status or the nature ....
The main legal point established in the judgment is the interpretation of the insurance policy terms and the extent of the insurance company's liability under the Workmen's Compensation Act.
The main legal point established in the judgment is that the interest burden under Section 4-A(3)(a) of the Workmen's Compensation Act, 1923, shifts to the Insurance Company.
Employer's liability to pay as per Commissioner's award and the same varied between wages actually drawn by deceased employee and wages shown by employer as payable to employee for purpose of payment....
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