IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
NYAPATHY VIJAY, J.
The New India Assurance Company Ltd. - Appellant
Versus
Sri Arlabu Ramana & Others - Respondents
Civil Miscellaneous Appeal No. 558 of 2012
Decided On : 03-03-2025
(A) Workmen’s Compensation Act, 1923 - Section 30 - Appeal against order of Commissioner for Workmen’s Compensation - Claimants sought compensation for death of labourer in an accident while engaged in employment - Insurance Company disputed liability based on driving license and employer-employee relationship. (Paras 1-4, 14-21)
(B) Employer-Employee Relationship - The court upheld the relationship between the deceased and the employer, affirming that the accident occurred in the course of employment. (Paras 18-19)
(C) Driving License Validity - The court ruled that a non-transport license suffices for driving a transport vehicle, referencing Supreme Court precedent. (Paras 18-19)
(D) Insurance Liability - The transfer of the vehicle does not absolve the insurance company of liability, as the policy covers the employer's actions. (Paras 19-20) (E) Violation of Policy Terms - The court found no merit in the claim of policy violation, noting the practical realities of labour transport in remote areas. (Paras 20-21)
Facts of the case:
The deceased was engaged in loading and unloading work when the vehicle met with an accident due to negligent driving, resulting in her death. The claimants sought compensation from the insurance company.
Findings of Court:
The Commissioner upheld the employer-employee relationship and awarded compensation of Rs.3,05,613/-.
Issues: The main issues included the existence of an employer-employee relationship, the deceased's age and wage, and entitlement to compensation.
Ratio Decidendi: The court concluded that the deceased was a workman under the Act, and the insurance policy covered the accident despite the vehicle's transfer.
Result: Appeal dismissed.
| Table of Content |
|---|
| 1. accident details and claim (Para 1 , 2 , 3 , 4) |
| 2. insurance company's defense (Para 6) |
| 3. commissioner's issues framed (Para 8 , 10 , 11 , 12 , 13) |
| 4. witness testimonies (Para 9) |
| 5. evidence presented (Para 14 , 15 , 17 , 18) |
| 6. appellant's contentions (Para 16) |
| 7. relevance of vehicle transfer (Para 19 , 20) |
| 8. court's decision (Para 21 , 22 , 23) |
JUDGMENT :
1. The present C.M.A is filed under Section 30 of Workmen’s Compensation Act, 1923 questioning the Order dated 03.06.2011 in W.C.No.29 of 2008 passed by the Commissioner for Workmen’s Compensation & Deputy Commissioner of Labour, Narsipatnam, Visakhapatnam District.
2. The O.P.No.2-Insurance Company is the Appellant herein.
3. The facts leading to filing of the present appeal are as follows:-
The Claimants are parents and siblings of one Arlabu Maheswari (hereinafter referred to as ‘deceased’). The deceased used to attend labour work and assisting her family. On 20.10.2006, the deceased was engaged as a labourer by O.P.No.1 along with other labourers for the purpose of loading and unloading on the Tractor & Trailer bearing Nos.AP-30-T-4106 & AP-30-B-7203. While so, when the deceased and other labourers were being taken in the tractor and trailer on the said date, the vehicle met with an accident near Dabbadabalanna Garuvu, opposite Pothurajugudi Kujjali of Paderu Mandal, Visakhapatnam District and turned turtle due to negligent driving of the driver of the vehicle, as a result, the deceased sustained injuries and died on the spot. A criminal case was registered by the S.H.O. Paderu P.S., vide Cr.No.75 of 2006 under Sections 304-A, 338, 337 IPC against the driver of the vehicle.
4. As the accident occurred in the course of employment while the deceased was working under O.P.No.1 upon his instructions and as the Tractor & Trailer were insured with O.P.No.2-Insurance Company vide Policy No.621200/31/05/04711, the claim application was filed by the parents and the siblings of the deceased seeking compensation of Rs.5,09,355/-.
5. O.P.No.1 remained absent and was set ex parte.
6. O.P.No.2-Insurance Company filed its counter disputing the claim regarding jural relationship of employer and employee between the deceased and O.P.No.1/owner, wages and the accident occurred while the deceased was travelling in the trailer bearing No. AP-30-V-7203 by sitting on the load of stones in violation of terms and conditions of the policy. It was also pleaded that the deceased was a gratuitous passenger on the tractor and trailer and therefore the Claimants are not entitled for compensation.
7. An additional counter was also filed by O.P.No.2-Insurance Company disputing that the driver of the tractor and trailer holds LMV non-transport vehicle license and the driver must possess an endorsement of tractor and trailer by the authorities.
8. On the basis of the pleadings, the Commissioner framed the following issues for consideration:-
1) Whether the deceased is a workman under the provisions of W.C. Act and there exists employee-employer relation and death arose out of and in the course of employment?
2) What is the age and wage of the deceased at the time of the accident?
3) Whether the applicant is entitled for any amount of compensation? If so what amount of compensation the applicants are entitled and who are liable to pay compensation?
9. In the course of enquiry, the Claimant No.1 i.e. the father of the deceased was examined as A.W.1. In his chief examination, A.W.1 deposed that on a fateful day i.e. on 20.10.2006 in the morning hours, his deceased daughter was engaged as labourer by O.P.No.1/owner in the tractor and trailer bearing Nos.AP-30-T-4106 & AP-30-B-7203 for loading and unloading and on that day at about 1.00 p.m, when the vehicle reached near Dabbadabalanna Garuvu, opposite to Pothuraju Gudi, Kujjali of Paderu Mandal, the vehicle turned turtle, fell into the slope out of the negligent driving of the driver, due to which, his deceased daughter fell down and sustained injuries an
The court affirmed that a non-transport driving license suffices for operating a transport vehicle, and the insurance company remains liable despite vehicle transfer.
The deceased, as a Hamali, is considered a workman under the Workmen’s Compensation Act, and the insurance company is liable for compensation as he falls under the definition of 'third party'.
An employer is liable for compensation if an accident arises out of and in the course of employment, regardless of any altercation preceding the accident.
An insurance company must fulfill its obligations under the policy unless there’s clear evidence of breach impacting liability.
The employer's responsibility to ensure a valid driving license for the vehicle operator is critical; a lack of such validation can relieve the insurer from liability under the insurance policy.
Point of law: When the intention of the Legislation was to cover compulsorily ail the risk arising out of the use of the Motor Vehicle and that the liability of the insurer is co-extensive with that ....
Owner solely liable for workmen's compensation when permitting LMV-licensed driver without valid HMV licence to operate heavy vehicle, absolving insurer due to attributable policy breach; appeal dism....
The central legal point established in the judgment is that the driving license status of the deceased did not absolve the employer or the Insurance Company from liability to pay compensation under t....
The appeal under Section 30 of the Workmen’s Compensation Act is limited to substantial questions of law, and the Commissioner’s findings on facts are final unless proven perverse.
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