IN THE HIGH COURT OF KARNATAKA AT BENGALURU
SURAJ GOVINDARAJ, J.
Senior Manager Claims Bajaj Allianz General Insurance Company Limited – Petitioner
Versus
The Registrar, Court of Small Causes, Bengaluru – Respondent
Writ Petition No. 36618 of 2018
Decided On : 21-02-2023
Employees Compensation Act 1923 - Section 31, 20, (1), 23 - Motor Vehicles Act, 1988 - Section 147 - Code of Civil Procedure, 1908 - Order 21 Rule 11 - Revenue Recovery Act, 1890 - Section 5 - Compensation - Recovery of amount - Issue any writ in recovery of amount and assumption of power to execute in pursuance to Annexure-F are opposed to section 31 of Employees Compensation Act 1923 – There are no powers vested for execution of award in terms or Order 21 of CPC even though Commissioner for employee compensation may be a Principal/Additional/Senior Civil Judges - Para 17.
Finding of the Court: When an award is passed by Commissioner for Employee Compensation either prior to notification or subsequent to notification such an award cannot be executed under Order 21 of Code of Civil Procedure - An award passed prior to notification would have to be enforced in terms of Section 31 of ECA - A perusal of above would indicate that enough and sufficient powers for recovery of any amount awarded or agreed to be paid in any proceedings under ECA - Merely because an award is passed by a Principal/Additional/Senior Civil Judge, same would not result in jurisdiction vested with that Court to exercise powers under Order 21 of CPC since vesting of power to deal with a particular matter under ECA is by designating Principal/Additional/Senior Civil Judge as a Commissioner for Employees’ Compensation - To put it in other words, whether an award has been passed prior to notification or after notification, enforcement of such an award can only be made in terms of Section 31 of ECA - Thus is in present case, respondent No. 3 having initiated execution proceedings in Execution under Order 21 Rule 11 of CPC is not maintainable and said proceedings would be required to be quashed.
Result: Petition allowed.
ORDER :
1. The petitioner-Insurance Company is before this Court seeking for the following reliefs:
(i) Issue any writ or writs holding that use of chapter II and consequently order 21 of Code of Civil Procedure 1908 in recovery of amount as initiated by XII Additional Senior Civil Judge and XXXVII ACMM, Bengaluru as per Annexure-E dated 23.02.2018 and assumption of power to execute in pursuance to Annexure-F are opposed to section 31 of Employees Compensation Act 1923.
(ii) Pass such other order or orders as this Hon’ble Court deems fit, under the facts and circumstances of the case, in the interest of justice and equity.
2. The petitioner is in the business of General Insurance and issuing of all kinds of policies of insurance including motor vehicle policies as contemplated under Section 147 of the Motor Vehicles Act, 1988 (the ‘M.V. Act’ for short) as also Workmen's compensation policy.
3. In terms of the Act policy issued under section 147 of the M.V. Act, the risk of the employee doing certain jobs, while being employed by the employer in the use of a particular vehicle would also be covered under the policy, recourse to which could be exercised under the Employees Compensation Act, 1923 (the ‘ECA Act’ for short). The proceedings initiated for recovery of compensation proceedings in MVC/CR/14/2009 before the Commissioner for Employee Compensation by respondent No. 3 herein, wherein the Employee Compensation Commissioner passed an award on 24.06.2013 determining the compensation payable by the petitioner to be Rs. 5,16,672/- with interest at the rate of 10% per annum.
4. The petitioner-insurance company had preferred an appeal in MFA No. 9291/2017 which came to be dismissed, wherein the award was confirmed by this Court.
5. In the meanwhile, the cases pending before the Employee Compensation Commissioner were transferred to the Civil Court under various notifications issued by the Government of Karnataka commencing from the notification dated 23.1.2014 under sub-section 1 of Section (20) of the ECA.
6. Respondent No. 3 upon such transfer initiated execution proceedings in Execution No. 2098/2017 and Order 21 Rule 11 of the Code of Civil Procedure, though the petitioner objected to the same the proceeding were taken up. It is aggrieved by the same that the petitioner is before this Court contending that no proceedings under Order 21 of the Code of Civil Procedure for the execution of an award could be initiated before a Civil Court.
7. Sri. A.N. Krishna Swamy, learned counsel appearing for the petitioner would submit that:
7.1. A Employee Compensation Commissioner is a statutory authority appointed under Section 20 of the ECA.
7.2. The State Government may by notification in the official gazette appoint any person who is or has been in judicial service for the period of not less than five years or who is or has been for not less than five years an advocate or a pleader or a person who has been a gazetted officer for not less than five years having educational qualification and experiences in Personal Management in Human Recourses Development and Industrial relations to be a Commissioner for Employees Compensation for such area as may be prescribed in the notification.
7.3. His submissions is that, in view of the nature of appointment being made under sub-section 1 of Section 20 of the ECA, such Commissioner would be a statutory authority and not a court in as much as the persons who could be appointed are not restricted to those in judicial service or those who are Judges but could be of persons who could have retired from the judicial services, having practiced as an advocate or having educational qualification in Personal Management in Human Resources Development and Industrial Relation as also any gazetted officer.
7.4. The ECA being a special enactment the method and manner of recovery is provided under Section 31 of the ECA. The said Act being self-contained, recovery of any amount awarded would have to be made in terms of and as
SupremeToday
Section 5 of Revenue Recovery Act, 1890 which is read as recovery by Collectors of sums recoverable as arrears of revenue by other public officers or by local authorities.
Timely execution and recovery of compensation under the Employees Compensation Act, 1923, are crucial to fulfill the compassionate intent of the legislation.
No appealable order exists for setting aside ex parte awards under the E.C. Act, as specified orders do not include such applications.
The main legal point established is that the proviso to Section 21(1)(b) of the Employees’ Compensation Act imposes a mandatory notice requirement for a non-jurisdictional Compensation Commissioner t....
The Commissioner has no power to review his earlier order except to rectify any clerical mistakes.
Claimants can only pursue compensation under one act for the same incident, as established by Section 167 of the Motor Vehicles Act.
The main legal point established in the judgment is the distinction between questions of fact and substantial questions of law in appeals under Section 30 of the Employee's Compensation Act, 1923. Th....
Workmen’s Compensation Act, 1923 is a social welfare legislation and it must be given a beneficial construction – Matters thereunder are to be adjudicated with due process of law and also with a keen....
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