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2026 Supreme(Del) 123

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANOJ KUMAR OHRI, J.
Bajaj Allianz General Insurance Co Ltd. - Appellant
Versus
Sh Rinku And Anr. - Respondents
FAO 260 of 2023, CM APPL. 52260 of 2023
Decided On : 12-02-2026

Advocates Appeared:
For the Petitioner:Mr. A.K. Soni, Advocate (Through V.C.)
For the Respondent:Mr. Ram Kanwar, Advocate for Ms. Ayushi Bansal, Advocate

A cleaner engaged by a driver in employment qualifies as an employee under the Employee's Compensation Act, with permanent disability potentially resulting in total loss of earning capacity.

Headnote:(A) Employee's Compensation Act, 1923 - Section 30 - Compensation awarded to injured worker for accident - Appeal by insurance company challenging employer-employee relationship and quantum of disability - Court affirms that cleaner employed by driver qualifies as an employee under Section 2(1)(e) of the Act, substantiated by witness testimony (Paras 6, 11, 12, 22).

(B) Legal principle of permanent disability and loss of earning capacity - Court highlights that even a 26% disability can result in 100% loss of earning capacity, depending on job nature and evidence (Paras 18, 19).

Facts of the case:
The injured was a cleaner on a truck that met with an accident, resulting in grievous injuries rendering him 100% disabled for employment, and compensation of Rs.9,98,304/- was ordered by the Commissioner (Paras 2, 8, 10, 22).

Findings of Court:
Court upheld the Commissioner's decision that the injured was indeed an employee and correctly assessed the loss of earning capacity (Paras 15, 22).

Issues: The core issues involved were whether there was an employer-employee relationship and if the disability justified complete compensation for loss of earning capacity (Paras 3, 6, 22).

Ratio Decidendi: The court reasoned that the employee's definition includes temporarily hired individuals, and the Commissioner applied correct principles in assessing disability and compensation (Paras 11, 22).

Result: Appeal dismissed and compensation amount to be released to the injured.

Table of Content
1. factual basis of the case and compensation. (Para 1 , 2)
2. disputes on employee status and disability claims. (Para 3 , 4 , 5)
3. assessment of employer-employee relationship under ec act. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. legal interpretation of employee definitions in ec act. (Para 12 , 13 , 14 , 15)
5. determination of loss of earning capacity. (Para 16 , 17 , 18 , 19 , 20 , 21)
6. conclusion of appeal and orders made. (Para 22 , 23 , 24 , 25)

JUDGMENT :

1. The present appeal has been filed by the insurance company assailing the order dated 08.06.2023 passed by the learned Commissioner under Employee's Compensation Act, 1923, Govt. of NCT of Delhi, Labour Department, Central District, Delhi in Case No. CEC/05/I/CD/23/3363.

Vide the impugned order, the learned Commissioner allowed the compensation application filed by respondent no.1/injured and directed the appellant to pay compensation of Rs.9,98,304/- along with interest @ 12% per annum with effect from 25.05.2019 till the date of realisation.

Notably, pursuant to the aforesaid, an amount of Rs.14,99,480/- stands deposited and receipt dated 29.09.2023 issued by the learned Commissioner has been placed on record.

2. Respondent no. 1/Rinku filed the subject claim application seeking injury compensation, claiming that he was employed as a cleaner on the vehicle bearing no. HR-55P-2910, which was owned by respondent no. 2. It was claimed that he was employed on the aforesaid vehicle and had undertaken a round-trip journey from Delhi to Hyderabad. On the return journey, when the vehicle reached Madhya Pradesh, it met with an accident. While the driver of the vehicle died due to injuries caused in the accident, the claimant survived and remained admitted in the hospital for about one week. On account of the accident, he suffered an injury to his right lower limb, because of which he has become 100% disabled for the purpose of his employment as a cleaner, as he is not in a position to mount the vehicle, attend to a punctured tyre, or do tirpaul (to tie a tarp). The said vehicle was owned by respondent no. 2 and insured by the present appellant, who had charged additional premium for three persons. It was further claimed that the claimant was 30 years of age and could not be re-employed on account of his injury.

3. Mr. Soni, learned counsel for the appellant, raised two-fold submissions. It was contended that the learned Commissioner erred in passing the impugned order in respect of the fact that the owner had denied the employer-employee relationship. It was next contended that 26% permanent physical disability was wrongly taken as 100% loss of earning capacity.

4. Learned counsel for the claimant/respondent no. 1 defended the impugned judgment. It was submitted that this Court has limited scope in a challenge raised under Section 30 of the Employee's Compensation Act, 1923 (hereinafter “EC Act”). Moreover, it was argued that the impugned award is well-reasoned and was passed upon proper appreciation of the facts and evidence that came on record.

5. Learned counsel for respondent no. 2 submits that the employer-employee relationship was denied, though the vehicle was insured.

6. Coming first to the scope of Section 30 of the EC Act, it is indeed settled through a number of decisions that the scope of appeal under is limited. Under the scheme of the EC Act, the Commissioner is the last authority on facts. Being a welfare legislation, the Parliament thought it fit to restrict appeal only to a substantial question of law (CR: Golla Rajanna & Ors. Vs. Divisional Manager & Anr., (2017) 1 SCC 45 ).

7. Keeping the aforesaid limited scope in view, I shall now deal with the contention that the employer-employee relationship remained unproved.

8. In the present case, the injured claimed that he had been employed as a cleaner on a truck by the deceased driver. The vehicle, being a truck, was engaged for transportation of goods, and the driver would engage a cleaner to help him in th

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