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2025 Supreme(Bom) 1580

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.M.Modak, J.
Mr.Jiyalal Rajaram Yadav and ors. – Petitioners
Versus
M/s. Agrawal Roadlines (P) Ltd. Through its Director and ors. – Respondents
First Appeal No.210 of 2023
Decided On : 14-11-2025

Advocates Appeared:
For the Appellant : Mr.T.J.Mendon i/b.Smt.Rina Kundu
For the Respondent:Ms.Varsha Chavan a/w Ms.Namrata Gawde Advocate

The court determined that misapplication of territorial jurisdiction constitutes a substantial question of law, warranting appellate review and remand for further proceedings.

Headnote:(A) Employees' Compensation Act, 1923 - Section 21 - Dismissal of claim application for want of territorial jurisdiction - Court addresses whether such dismissal constitutes a substantial question of law. (Paras 1, 8, 42).

(B) Legal Principles - The court emphasizes the need for a substantial question of law to be framed for interference in judgments and clarifies the distinction between questions of fact and substantial questions of law as relevant to jurisdiction. (Paras 9, 11, 30).

(C)

Facts of the case:
The original Claimant was injured in a vehicular accident while employed as a driver in Gujarat. The claim was dismissed due to jurisdictional issues following his death before the claim was resolved. (Paras 1, 2, 4).

(D)

Findings of Court:
The dismissal of the application was erroneous due to the consideration of jurisdiction based on the Claimant's former residence at Thane and the insurance company's presence there. (Paras 42). (E)

Issues: Whether the dismissal for lack of territorial jurisdiction is a substantial question of law; and if it warrants interference from the appellate court. (Paras 1, 8). (F)

Ratio Decidendi: The court ruled that the findings on territorial jurisdiction were misapplied, emphasizing the need for a practical interpretation of jurisdictional laws to ensure justice, leading to the decision of remanding the case. (Paras 43). (G)

Result: The appeal is partly allowed, the judgment dated 9th November 2019 is set aside, and the matter is remanded for further proceedings. (Paras 43)

Table of Content
1. accident details and jurisdiction issue (Para 1 , 3 , 4)
2. arguments on jurisdiction dismissal (Para 2 , 7 , 20)
3. evidence details and prior findings (Para 5 , 6 , 12 , 14 , 15)
4. definitions of substantial question of law (Para 8 , 10 , 11)
5. ratio about territorial jurisdiction principles (Para 9 , 19)
6. comparison between ec act and mv act provisions (Para 29 , 30 , 39)
7. final order and remand instructions (Para 43 , 44)

JUDGMENT :

S.M.Modak, J.

1. The vehicular accident took place at Vadodara – Gujarat. The office of employer is situated at Gandhidham – Gujarat. The insurance policy was issued at Ahmedabad and they are having branch office at Thane. The original Claimant was residing at Thane at the time of filing of Application (but no documents were filed). During pendency of Claim Application, he shifted to Uttar Pradesh and died there. His dependants are residing there. On these facts, learned Commissioner, Thane dismissed the Application on 9th November 2019 for want of ‘territorial jurisdiction’. That is why, the Appeal is filed by the dependants. So, the issue involved in this Appeal is “dismissal of such Application for want of territorial jurisdiction whether can be a substantial question of law” and if yes “what can be the order”?

2. When this Appeal was admitted on 28th March 2023, any substantial question of law was not framed. On this background, I have heard learned Advocate Shri.T.J.Mendon for the Appellants/Original Claimant Nos.1 to 3 and learned Advocate Ms.Varsha Chavan for Respondent No.2/Original Insurer. The Respondent No.1 is the employer/Insured. The Original Claimant–Rajaram Yadav was the employee of Respondent No.1. He was a driver by profession. The Respondent No.1 runs a business of transport in the name and style as “M/s.Agrawal Roadlines (P) Ltd.” They have obtained an insurance policy (Vehicle Package Policy) from the Respondent No.2/Insurance Company.

Pleadings

3. The deceased Rajaram was injured in an accident that took place on 2nd January 2011 at Vadodara (Gujarat). He was driving a tanker and it turned turtle and he sustained fracture. He was paraplegic. He sought compensation for injuries. The accident took place on 2nd January 2011 but Application was not filed in time. It was filed on 4th September 2013.

4. The Respondent No.1/Employer filed the Written Statement. They have admitted the employment and the accident. According to them, the responsibility to pay compensation is on the Insurance Company. However, they have challenged the ‘territorial jurisdiction’ of the Court of Labour Commissioner at Thane. Whereas, the Respondent No.2 has denied everything but not challenged the ‘territorial jurisdiction’ of Thane Court.

Evidence

5. The Claimant–Rajaram Yadav gave evidence and examined three witnesses. The employer gave evidence through their Representative Mitesh S. Joshi. The Insurance Company has not given any evidence. They have restricted themselves in conducting cross-examination. Findings

6. Learned Commissioner framed four issues. All the issues are answered in favour of the Claimant except the issue of ‘territorial jurisdiction’. And that is how, the Application was dismissed as per the judgment dated 9th November 2019 . During pendency of the Application, there was one development. The injured Rajaram expired on 28th June 2018. His Legal Representatives were brought on record. They are nothing but the present Appellants.

7. During the arguments, Ms.Varsha Chavan supported the findings on the issue of ‘lack of territorial jurisdiction’. Whereas, according to Mr.Mendon, such objection cannot be entertained for two reasons.

They are:-

(i) Such objection was not taken while hearing the delay condonation Application.

(ii) The Insurance Company in their Written Statement has not taken this objection, and hence, they have waived it.

According to Mr.Mendon, the findings on the aspect of ‘territorial jurisdiction’ are erroneous. During their oral arguments, they have elaborated

















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