1977 Supreme(Ker) 338
High Court of Kerala
V.B.Eradi, K.K. Narendran, JJ.
ESI Corporation - Appellant
Versus
Krishnaswamy Gowder & Anr - Respondent
A.S. No. 493 of 1973
Decided On : 11-10-1977
The court emphasized the principle that when a right is newly created by statute and the statute prescribes the manner in which the said right can be enforced, the person seeking to enforce such right has to resort only to the remedy indicated by the statute, and the ordinary jurisdiction of the Civil Court cannot be invoked for the said purpose.
Headnote:
Employees' State Insurance Corporation - Recovery of indemnification under S.67 of the Employees' State Insurance Act, 1948 - S.67
Fact of the Case:
The Employees' State Insurance Corporation appealed against the dismissal of a suit for the recovery of indemnification under S.67 of the Employees' State Insurance Act, 1948. The suit was dismissed by the lower court on the ground of lack of jurisdiction.
Finding of the Court:
The court held that the lower court was right in dismissing the suit as it had no jurisdiction to entertain it.
Issues: The main issue was whether the Corporation had the right to institute a suit in the ordinary Civil Court for enforcement of the right which had become vested in it under S.67 of the Act prior to the date of commencement of that section.
Ratio Decidendi: The court emphasized that when a right is newly created by statute and the statute prescribes the manner in which the said right can be enforced, the person seeking to enforce such right has to resort only to the remedy indicated by the statute, and the ordinary jurisdiction of the Civil Court cannot be invoked for the said purpose.
Final Decision: The appeal was dismissed, and the parties were ordered to bear their respective costs.
V. Balakrishna Eradi, J.
1. The Employees' State Insurance Corporation, Trichur has preferred this appeal against, the decision of the Subordinate Judge, Parur dismissing the suit O.S. No. 62 of 1969 which the Corporation had instituted against the respondents herein for the recovery of an amount of Rs. 16,766.75 from them by way of indemnification under S.67 of the Employees' State Insurance Act, 1948 (hereinafter referred to as the Act). The suit was dismissed by the court below on the ground that the civil court had no jurisdiction to entertain and try the suit. The correctness of the said view is called in question in this appeal.
2. The Mathrubhumi Printing and Publishing Co., Ltd. is a factory covered under the Act. An autorickshaw bearing registration No. K.L.D. 4902 belonging to the said company which was being used for delivery and distribution of the Mathrubhumi daily newspaper was involved in a road accident on 27th October 1966 at a place called Desom near Alwaye at about 4.30 a.m. A lorry bearing registration No. M.D.E. 9454 owned by the 1st defendant (1st respondent) which was being driven by the 2nd defendant (second respondent) collided with autorickshaw and as a result thereof the driver of the autorickshaw -- Raman Nair -- was killed on the spot. According to the plaintiff appellant -- the accident had occurred as a result of the rash and negligent act of the driver of the lorry and consequently the 1st defendant is legally liable to pay compensation for the death of Raman Nair. Inasmuch as the fatal injury was suffered by Raman Nair during the course of and arising out of the employment under the insured company the Corporation became statutorily bound to compensate the dependants of the deceased under the Act and accordingly it has been making periodical payments to the defendants as prescribed in the Act and the Rules after assessing the total compensation amount on the basis of the wages that were being received by the deceased at the time of the accident. The Corporation contended in the suit that under S.67 of the Act it is entitled to be indemnified by defendants Nos. 1 and 2 who are the persons legally liable to pay compensation or damages under the law for the fatal injury sustained by deceased Raman Nair.
S.67 of the Act was in the following terms:
"Where an insured person is entitled to receive or to recover (but has not received or recovered), whether from his employer or any other person, compensation or damages under any law for the time being in force in respect of any employment injury caused under circumstances creating a legal liability in some person other than the employer or his agent, the Corporation shall be entitled to be indemnified by the person so liable :
Provided that the Corporation shall not be entitled to be indemnified by an employer who has paid contributions in respect of the employee sustaining the employment injury as an employee under this Act, except in cases covered by S.66."
The method of enforcement of the right conferred by the above section was prescribed by S.75, sub-s.(2) clause (c) which also we shall extract.
"75 (2). The following claims shall be decided, by the Employees' Insurance Court, namely :-
* * * * * * *
(c) claim under S.66 or 67 made by the Corporation against the employer or other person liable thereunder;
Section 67 of the Act was omitted from the statute with effect from 17th June 1967 by S.29 of the Employees' State Insurance (Amendment) Act, 1966 -- Act 44 of 1966 (hereinafter called the amending Act). By S.32(b) (ii) of the amending Act clause (c) of S.75(2) was omitted from the principal Act. This provision of the amending Act was, however, brought into force only with effect from 28th January 1968. S.43 of the amending Act contains a saving provision in respect of certain types of pending proceedings. That section reads :-
"No provision of this Act shall apply to and in relation to any payment which has been, or is being, or is required to be, m