Insurance companies cannot deny liability based solely on allegations of fake licenses unless they prove knowledge of such fraud.

JUDGMENT :

1. The present civil miscellaneous appeal is filed against the order dated 05.07.2004 in WC No.1 of 2003 passed by the Commissioner for Workmen’s Compensation and Assistant Commissioner of Labour, Cirlce-1, Visakhapatnam, Visakhapatnam District.

2. The Insurance Company is the appellant herein.

3. The facts leading to filing of the present appeal are as follows :

The claim application was filed by the wife of Yelleti Siva Satya Vara Prasad @ Prasada Rao (hereinafter referred to as “deceased”), who was working as the Driver of an Auto Bearing No.AP 31 W 1250 owned by OP No.1, on monthly wage of Rs.3,000/-. On 20.04.2002, the auto was being driven by the deceased with a load of cashew, which was coming from Dasullapalem to be sold at Simhachalam. While going towards Simhachalam, the auto had met with accident at Kothavalasa at about 10:00 p.m. As the vehicle collided with a tree, which resulted in the immediate death of the deceased and the passengers in the vehicle received grievous injuries. As the deceased was working under OP No.1 and as the auto was insured with a policy by OP No.2, the claim application was filed seeking compensation. It was further pleaded that the deceased was aged about 26 years at the time of the accident.

4. OP No.1 i.e., owner though was indemnified about the claim did not attend the enquiry and was set ex parte.

5. OP No.2/Insurance Company filed its counter denying the employer and employee relationship, wages, age as claimed in the claim application and the driving license.

6. An additional counter was also filed by OP No.2/Insurance Company stating that OP No.2 had investigated the claim and contended that the deceased was having another wife by name Lakshmi and son Yelleti Sai Ram and therefore there is a mis-joinder of the claim application and as per the verification of the license in the Office of Licensing Authority at Visakhapatnam, it was revealed that the license is fake and fabricated one as the license DL No.6344 of 1998 was not issued in the name of the deceased.

7. In support of her claim, the claimant herself was examined as AW1 apart from examining one Pudi Ramana as AW2 and got marked Exs.A1 to A7 i.e., Copy of F.I.R., Copy of Motor Vehicle Inspector’s Report, Copy of Post-mortem Report, Copy of Insurance Policy, Copy of C-Book of the Auto, Copy of Charge-sheet, Driving License of the deceased respectively. In her evidence, the claimant denied that the driving license was fake one.

8. OP No.2 i.e., the Insurance Company examined one Ch. V. Govinda Raju, who working as Junior Assistant in the office of R.T.O., Visakhapatnam to establish that the driving license of the deceased was a fake one. The said Govinda Raju was examined as RW1 and deposed that the driving license was issued in the name of one P. Appa Rao, S/o. P. Krishna Rao with the authorization to drive the Light Motor Vehicles and the same was filed as Ex.R1. It was further deposed that Ex.A7 driving license was not issued to the deceased.

9. OP No.2 also examined one J. Sivaji, Senior Assistant (Legal) as RW2 to establish their defence.

10. On the basis of the pleadings and evidence, the Commissioner framed the following issues for consideration :

(1) Whether the deceased is a workman as per the provisions of the Act and died because of the injuries received during the course of employment and out of employment?

(2) What was the age of the deceased at the time of accident?

(3) What was the wages of the deceased at the time of accident?

(4) Whether the applica