1. The appellant has challenged the order dated 14th January, 2016 whereby Commissioner, Employees’ Compensation has awarded compensation of Rs.3,68,340/- to respondents No.1 to 4.

2. The appellant was constructing a gymnasium in property No.699, Gram Sabha, Pooth Kalan, Delhi through the contractor (respondent No.5). On 06th March, 2010, Babu Lal was working as a labourer (Baildar) under the contractor (respondent No.5) on the first floor of the gymnasium. Babu Lal was carrying construction material (tasla with masala) on his head when the pad (balli and fatta), on which Babu Lal was standing, overturned due to which Babu Lal fell down and suffered grievous injuries. Babu Lal was taken to Braham Shakti Hospital, Pooth Kalan, Delhi where he expired on 10th March, 2010. The police registered FIR No.60/2010 under Section 288/337 IPC at P.S. Begumpur, Delhi. Babu Lal was survived by his widow, two daughters and one son who filed application for compensation before the Commissioner, Employees’ Compensation.

3. The appellant contested the claim on the ground that he had given the contract for construction to respondent No.5. Respondent no.5 (the contractor) contested the claim on the ground that he was not the contractor but a co-worker and he worked on the construction site under the appellant on daily wages.

4. Respondent no.1 appeared in the witness box as PW-1 and deposed that the appellant was running the business of gymnasium in property No.699, Gram Sabha, Pooth Kalan, Delhi and her husband was working in the construction of the first floor on 6th March, 2010 when the pad overturned due to which the deceased fell down and suffered fatal injuries. PW-1 produced the copy of FIR marked as Ex.PW-1/1, receipt as Ex.PW-1/2, cremation receipt as Ex.PW-1/3, post-mortem report as Ex.PW-1/4, death certificate as Ex.PW-1/5, hospital receipt as Ex.PW-1/6, notice of demand and postal receipts as Ex.PW-1/8 to PW-1/11. Respondent no.1 examined Meera as a witness who deposed that she was working near the site of the accident and she saw the deceased lying at the site of the accident.

5. The appellant appeared in the witness box as RW-1 and deposed that he had given the contract for construction of gymnasium to respondent no.5. The appellant admitted in cross-examination that he paid Rs.50,000/-to respondent no.1 towards the medical expenses of the deceased, Babu Lal. The copy of the receipt for Rs.50,000/-was marked as Ex.RW-1/B. The appellant proved the copy of the agreement with the contractor (respondent no.5) as Ex.RW-1/C.

6. The Commissioner, Employees’ Compensation held that the appellant was carrying on construction of gymnasium in property No.699, Gram Sabha, Pooth Kalan, Delhi and Babu Lal was working as a workman on 6th March, 2010 when he suffered an accident arising out of and during the course of his employment which resulted in the fatal injuries. Following Bhutabhai Angadbhai v. Gujarat Electricity Board, 1987 (1) L.L.N 156, the Commissioner held the appellant, being the principal employer, liable to pay the compensation under Section 12 of the Employees’ Compensation Act. The Commissioner, Employees’ Compensation awarded compensation of Rs.3,68,340/-along with the interest @ 12% per annum.

7. Learned counsel for the appellant urged at the time of the hearing that the appellant is not liable to pay any compensation as appellant had engaged respondent No.5 as a contractor and Section 12 of the Employee’s Compensation Act is not applicable to the present case.

Liability of the principal under Section 12 of the Employee’s Compensation Act

8. Section 12 of the Employee’s Compensation Act imposes the liability of payment of compensation on the principal with right to recover the same from the contractor in respect of work being carried out by the contractor. Section 12 of the Employee’s Compensation Act is reproduced hereunder:

“Section 12. Contracting.-

(1) Where any person (hereinafter in this section referred to as the principa