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IN THE HIGH COURT OF DELHI
Manoj Kumar Ohri, J.
ICICI Lombard General Insurance Company Ltd. - Appellant
Versus
Saroj Gautam - Respondent
FAO 4 of 2019 & CM. Appl. 295 of 2019
Decided On : 04-11-2022




The employer-employee relationship must be established with evidence, and familial ties do not undermine this if supported by admissions.

Headnote:(A) Employees' Compensation Act, 1923 - Section 30 - Appeal on ground of error relating to employer-employee relationship - Compensation awarded for death of employee in accident - Burden of proof lies on claimants to establish the employer-employee relationship during proceedings - The relationship was validated by the uncle of the deceased, affirming that the deceased was in his service at the time of the accident. (Paras 2, 6, 9, 11)

(B) Appeal - Limitation of scope - The High Court's jurisdiction under Section 30 is confined to substantial questions of law, and factual findings are generally not subject to re-evaluation unless perverse. (Paras 6, 12)

Facts of the case:
The claimants filed a petition for compensation following the death of their son, Nitish Gautam, aged 20, who died in a car accident while driving for his uncle, who was his employer. The insurer contested the employer-employee relationship.

Findings of Court:
The court found that the employer-employee relationship was duly established and supported by the uncle's admission; the appeal was dismissed and the compensation award upheld.

Issues: Whether the relationship of employer-employee was established; the challenge to the findings presented by the claimants.

Ratio Decidendi: The employer-employee relationship was affirmed as established by both the claimants and the employer; the Court remarked that mere familial ties do not negate an employment relationship when supporting evidence exists.

Result: Appeal dismissed; compensation awarded to claimants upheld.

Table of Content
1. factual basis for compensation claim. (Para 1 , 2)
2. contestation of employer-employee relationship. (Para 3 , 4)
3. legal standards for appeals under the act. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
4. ruling upholding compensation order. (Para 12 , 13)

JUDGMENT

Manoj Kumar Ohri, J. The appellant has preferred the present appeal under Section 30 of the Employees' Compensation Act, 1923 (hereinafter, referred to as the `Act'), assailing the order dated 16.04.2018 passed by the learned Commissioner, Employees' Compensation in Case No.CEC-D/NE/18/2017/1125-1127, whereby death compensation was awarded to respondent Nos.1 and 2/claimants and the appellant directed to deposit Rs.8,90,840/- alongwith interest @ 12% p.a. with effect from 19.07.2017 till realization.

2. Brief facts, as emerge from the records, are that respondent Nos.1 and 2 had filed a petition under Section 22 of the Act, claiming compensation on account of death of their son/Nitish Gautam. As per the averments, Nitish Gautam, aged 20 years, was employed as a driver with respondent No.3 on the latter's car bearing No. DL 7CM 0135 and was drawing wages @ Rs.12,000/- per month. The car was insured with the appellant. On 19.07.2013, while Nitish Gautam was driving the car in discharge of his duty at about 2:15 P.M., it went out of control near Sector-7, GT Road, Haryana and collided with an Innova Car coming from the opposite side. The body of Nitish Gautam was recovered by police officials and his postmortem was conducted at Government Hospital, Sonipat, Haryana. On account of fatal injuries received by the deceased in the accident, an FIR bearing No.207/2013 was registered under Sections 279/337/304A IPC at P.S. Murthal, Sonipat, Haryana.

3. Learned counsel for the appellant contended that the claimants failed to establish employer-employee relationship between the deceased/Nitish Gautam and respondent No.3/employer in the proceedings before the learned Commissioner. In this regard, he submitted that respondent No.3 is in fact real uncle of the deceased and could not have been his employer. In support of his submission, learned counsel referred to the pleadings made before the MACT in cases filed separately on behalf of the present claimants as well as one Srishti Rustagi, who was statedly a co-passenger of the deceased on the date of the accident. To support his case, reliance was also placed by learned counsel on a decision of the Karnataka High Court in Divisional Manager, United India Insurance Company Ltd., Davanagere v. Gujjamma and others reported as 2004 SCC OnLine Kar 30.

4. On the other hand, learned counsel for respondent Nos. 1 and 2 refuted the submissions made on behalf of the appellant by contending that the employer-employee relationship between deceased and respondent No.3 was duly proved in the proceedings before the learned Commissioner.

5. I have heard learned counsels for the parties as well as perused the entire material placed on record.

6. At the outset, it is pertinent to observe that in terms of Section 30 of the Act, a challenge to the order of a Commissioner can be made only on a substantial question of law. In this regard, the Supreme Court in North East Karnataka Road Transport Corporation v. Sujatha reported as (2019) 11 SCC 514 has held the scope of an appeal under Section 30 of the Act to be limited to substantial questions of law, and that findings of facts proved either way are not to be likely interfered with. Relevant excerpt from the decision is reproduced hereunder:

    "9. At the outset, we may take note of the fact, being a settled principle, that the question as to whether the employee met with an accident, whether the accident occurred during the course of employment, whether it arose out of an employment, how and in what manner the accident occurred, who was negligent in causing the accident, whether there existed any relationship of employee and employer, what was the age and monthly salary of the employee

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