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2023 Supreme(AP) 1530

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
VENKATA JYOTHIRMAI PRATAPA, J.
Sri Shaik Basheer Ahmed - Appellant
Versus
Sri Gopulapati Saida and another - Respondents
C.M.A. No.483 of 2009
Decided on : 15-02-2023

Advocates:
Advocate Appeared:
For the Appellant : Sri A. Rajendra Babu.
For the Respondents: Dr. Challa Srinivasa

Headnote:(A) Workmen Compensation Act, 1923 - Section 30 - Appeal against a decision of the Commissioner for Workmen’s Compensation - The applicant, claiming compensation for injuries sustained while working as a cleaner, was awarded Rs. 68,730/- out of a claimed Rs. 3,00,000/-, while the insurance company was exonerated due to policy violations. (Paras 1, 2, 4, 6, 8, 10, 12, 18)

(B) Legal principle of employer liability - The owner of a goods vehicle improperly carrying passengers and the insurance company’s liability in case of policy violations are critical in determining compensation. (Paras 13, 16)

(C) Right to compensation including interest - The applicant is entitled to interest at the rate of 12% p.a. from the date of the accident until realization, irrespective of the learned Commissioner's omission of interest in his order. (Paras 15, 18)

Facts of the case:
The injured applicant worked as a cleaner and sustained injuries in an accident involving an improperly used goods vehicle. The owner failed to contest the claim while the insurance denied liability due to policy violations.

Findings of Court:
The insurance company was not liable due to confirmed policy violations, but the applicant was entitled to interest on compensation.

Issues: Whether the insurance company could be exonerated for policy violations and to what extent compensation and interest are warranted.

Ratio Decidendi: The court held that knowledge of policy violations precludes the owner and cleaner from claiming against the insurance company, yet affirms the right to compensation with interest from the date of the accident.

Result: Appeal partly allowed.

Table of Content
1. overview of the case and claims (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments regarding compensation claims (Para 7 , 10 , 11)
3. court's analysis on liability and interest (Para 12 , 13 , 14 , 15 , 16 , 17)
4. final judgment and orders issued (Para 18)

JUDGMENT :

This Civil Miscellaneous Appeal is directed under Section 30 of the Workmen Compensation Act, 1923 (in short the Act) against impugned Order in W.C.No.30/2005, dated 06.01.2008 by the learned Commissioner for Workmen’s Compensation, Labour-II Circle, Guntur. (in short, the Commissioner).

2. The appellant herein was the applicant/injured, who laid a claim seeking compensation of Rs.3,00,000/- against the owner and insurance company. The respondent Nos., 1 and 2 herein were the owner and insurance company of the offending vehicle. For the sake of convenience, parties will be referred to as arrayed before the learned Commissioner.

3. The claim of the applicant is that he was employed as a cleaner for a monthly salary of Rs.4000/- per month on a mini lorry bearing No. ADD 1962 owned by Opposite Party No.1, for which, Opposite Party No.2 issued a policy covering the risk of the applicant. The applicant sustained injury on 24.03.2005 while he was attending the duty. The Opposite Party No.1, who is the owner of the offending vehicle, did not choose to contest the matter.

4. The Opposite Party No.2/Insurance company filed its counter denying material averments made in the application, inter alia contending that the driver had no valid driving license to drive the offending vehicle, and that no appropriate premium was paid to the vehicle to ply on the road, and as such, the Opposite Party No.1 violated the terms and conditions of the policy therefore, they are not liable to pay any compensation.

5. Enquiry before the learned Commissioner: During the enquiry before the learned Commissioner, the applicant was examined as AW.1, who reiterated the contents in the Petition in his chief examination. Apart from examining himself, the applicant also examined the Doctor, who treated him after the accident, as AW.2. Though the owner did not file Counter, he deposed as AW.3 supporting the claim of the applicant. He categorically stated that the vehicle was insured with Opposite Party No.2, and accordingly, the insurance company is liable to pay compensation. The Insurance Company though filed Counter, did not choose to adduce any evidence on their behalf.

6. Finding of learned Commissioner:

a. The learned Commissioner on appreciation of the material and evidence on record opined that the driver possessed valid driving license and the vehicle got insurance policy, which was issued by the Opposite Party No.2.

b. The mini lorry, which is meant for transportation of the goods, cannot carry the passengers.

c. The evidence on record coupled with Ex.A.1 and A.4 would show that seven persons died and many of them sustained injuries.

d. The applicant, who is the cleaner of the vehicle, and the owner clearly violated the terms and conditions of the policy. So, the owner is liable to pay the compensation.

e. Against the claim of the applicant i.e., Rs.3,00,000/-, an amount of Rs.68,730/- was granted as compensation against the owner while exonerating the insurance company.

7. Grounds of Appeal:

Aggrieved by the impugned Order, the applicant preferred the present appeal on the grounds that

    i. the learned Commissioner failed to appreciate evidence on record in a proper perspective.

    ii. the learned Commissioner ought to have observed that the applicant being a workmen sustained injuries during the course of employment and is entitled to get compensation of Rs.3,00,000/- against the owner as well as the insurance company.

8. Substantial Question of law framed by the Appellant:

    i. In case of violation of the conditions of the policy, whether the Opposite Party No.1 i.e., owner of the vehicle, is alone liable to pay the compensation though the Opposite Party No.2 failed to place any evidence in proof of th

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