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IN THE HIGH COURT OF DELHI
Manoj Kumar Ohri, J.
Sanjeev Kumar - Appellant
Versus
Mohammad Mobeen - Respondent
FAO 299 of 2022 & CM. Appl. No. 51101 of 2022 (Stay)
Decided On : 28-11-2022




The scope of appeal under the Employees' Compensation Act is confined to substantial questions of law, with findings of fact generally not subject to interference.

Headnote:(A) Employees' Compensation Act, 1923 - Section 30 and Section 4-A (3)(b) - Penalty imposed upon employer for non-compliance in submitting claim application - Appellant contended liability should rest with insurance company - Court held scope of appeal limited to substantial questions of law as per North East Karnataka Road Transport Corporation v. Sujatha - Court upheld findings of fact regarding employer’s non-submission of claim application within stipulated time. (Paras 4, 6)

Facts of the case:
Appeal against order imposing penalty on employer for failure to submit claim form to insurance within time.

Findings of Court:
No grounds found to interfere with Commissioner’s findings; penalty upheld.

Issues: Whether the penalty should be imposed on the employer or the insurance company.

Ratio Decidendi: Appeal jurisdiction is limited to substantial questions of law, not factual findings.

Result: Appeal dismissed.

Table of Content
1. appeal against penalty under employee compensation act (Para 1)
2. arguments regarding liability for penalty (Para 2)
3. court's observations on appeals under section 30 (Para 3 , 4 , 5)
4. supreme court's decision impacts findings (Para 6)
5. order to forward judgment to commissioner (Para 7 , 8)

JUDGMENT

Manoj Kumar Ohri, J. (Oral)--By way of the present appeal filed under Section 30 of the Employees' Compensation Act, 1923 (hereinafter, referred to as the `Act'), the appellant/respondent No.1 (the employer) has assailed the order dated 31.08.2022 passed by the learned Commissioner, Employees' Compensation whereby penalty of Rs.4,25,030/- was imposed upon him.

2. Mr. Adarsh Kumar Tiwari, learned counsel for the appellant has submitted that though the aforesaid penalty amount has been deposited, however the impugned order has been assailed on the ground that the claim application form was supplied to respondent No.2/M/s. Sri Ram General Insurance Co. Ltd. within the stipulated time. It is contended that liability to pay penalty amount, if any, ought to have been fastened on respondent No. 2 instead of the appellant.

3. A reading of the paper book would show that during the proceedings, a Show Cause Notice dated 08.12.2021 was issued to the appellant, inter alia, directing him to show cause as to why penalty as prayed should not be awarded as per the provisions of Section 4-A (3)(b) of the Act. The appellant filed his Reply, a copy of which has been placed on the record. The said Reply reads as under:

    "1. That on 11-05-2021, in Delhi, the Lockdown was declared & before that on 25-03-2021 the respondent no - 1 had appeared before the commission.

    2. That after 11-05-2021 the respondent did not receive any notice from the commission except the notice dated 08-12-2021.

    3. That after receiving the notice dated 08-12-2021, the respondent appeared before the commission on 21-12-2021.

    4. That non-appearance of the respondent is neither intentional nor deliberate."

4. At this juncture, this Court deems it expedient to outline the scope of an appeal filed under Section 30 of the Act as delineated in North East Karnataka Road Transport Corporation v. Sujatha, reported as (2019) 11 SCC 514. In the captioned case, the Supreme Court reiterated that the scope of interference in an appeal filed under Section 30 of the Act is limited to substantial questions of law and findings of facts proved either way, are not to be likely interfered with. It was further held as under:

    "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, how many are the dependents of the deceased employee, the extent of disability caused to the employee due to injuries suffered in an accident, whether there was any insurance coverage obtained by the employer to cover the incident etc. are some of the material issues which arise for the just decision of the Commissioner in a claim petition when an employee suffers any bodily injury or dies during the course of his employment and he/his LRs sue(s) his employer to claim compensation under the Act.

    10. The aforementioned questions are essentially the questions of fact and therefore, they are required to be proved with the aid of evidence. Once they are proved either way, the findings recorded thereon are regarded as the findings of fact.

    11. The appeal provided under Section 30 of the Act to the High Court against the order of the Commissioner lies only against the specific orders set out in clauses (a) to (e) of Section 30 of the Act with a further rider contained in the first proviso to the section that the appeal

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