SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1995 Supreme(Ker) 419

High Court of Kerala
K.J. Joseph, J.
K Sreedharan - Appellant
Versus
Thajudeen Koya & Ors - Respondent
O.P. No. 3584 of 1995
Decided On : 08-12-1995

The main legal point established in the judgment is the enforceability of the compensation award against transferred assets under S.14A and the lack of jurisdiction of the civil court to entertain the suit against the enforcement of liability under S.19(2) of the Workman's Compensation Act.

Headnote:

Workman's Compensation Act - Employer's Liability - S.14A, S.19(2) - The court held that the employer's transfer of assets to his wife after the compensation award was a first charge on the assets under S.14A. The court also found that the civil court had no jurisdiction to entertain the suit against the enforcement of liability under S.19(2). The judgment and decree passed in the suit were declared invalid and inoperative for recovery of the compensation amount.

Fact of the Case:

The petitioner, an employee in a saw mill, sustained serious injuries during employment. He filed a claim petition under the Workman's Compensation Act, which awarded him compensation. The employer transferred his assets to his wife to avoid paying the compensation. The wife filed a suit against the State and revenue officials for a permanent injunction, and the petitioner was not made a party. The court dismissed the petitioner's application for impleadment, and the suit was decreed without the petitioner as a party.

Finding of the Court:

The court found that the employer's transfer of assets to his wife was subject to a first charge under S.14A of the Act. It also held that the civil court had no jurisdiction to entertain the suit against the enforcement of liability under S.19(2). The judgment and decree passed in the suit were declared invalid and inoperative for recovery of the compensation amount.

Issues: The main issues were the enforceability of the compensation award against the transferred assets, the jurisdiction of the civil court to entertain the suit, and the validity of the judgment and decree passed in the suit.

Ratio Decidendi: The court's decision was based on the interpretation of S.14A and S.19(2) of the Workman's Compensation Act, which established the first charge on transferred assets and the lack of jurisdiction of the civil court to entertain the suit against the enforcement of liability.

Final Decision: The court declared the petitioner's entitlement to recover the compensation amount from the transferred assets and directed the respondents to proceed with recovery under the Kerala Revenue Recovery Act. The original petition was allowed with costs against the respondents.

JUDGMENT

K.J. Joseph, J.

1. The petitioner was an employee in the saw mill owned by the first respondent. On 6-5-1987, in the course of employment, he sustained injuries, as a result of which his right palm was cut off. Though it was got stitched, the five fingers of his right hand became paralysed. He, therefore, filed a claim petition before the third respondent under the Workman's Compensation Act, 1923 (for short, the Act only). The third respondent, as per Ext. P1 judgment awarded a compensation of Rs. 24,460/- with 6% interest per annum from 6-6-1987 and in case of failure to deposit the said amount in the court within 30 days from the date of receipt of intimation of the said judgment, revenue recovery steps were directed to be taken against the first respondent under S.31 of the Act. Instead of complying with Ext. P1, he chose to execute two settlement deeds - Exts. P2 and P3 - in favour of his wife viz. the second respondent transferring the entire properties owned by him. According to the petitioner, Exts. P2 and P3 were executed only to defeat the claim of the petitioner under Ext. P1. Thereafter, the second respondent filed O.S.No. 1033 of 1991 before the Principal Munsiff's Court, Kollam for a permanent injunction restraining the defendants (Government of Kerala represented by the District Collector, Tahsildar, Revenue Recovery, Kollam and the Village Officer, Revenue Recovery, Kollam) from attaching or selling the movables in the plaint schedule building and for proceeding against the properties covered by Exts. P2 and P3 settlement deeds. In the said suit, the petitioner was not made a party. Knowing about the suit, the petitioner had filed an application - I.A No. 3164 of 1993 - for impleading him as an additional defendant in the suit. The said application was opposed by the second respondent, who was the plaintiff in the case. The learned Munsiff considered the said I.A. and passed Ext. P4 order on 7-7-1994 dismissing the said application and finding that he is not a necessary party to the suit since the suit itself is for a permanent injunction as against initiating revenue recovery proceedings against the plaint schedule properties for the recovery of the amount from a third party. It is thereafter the suit was decreed by the Munsiff on 8-11-1994 without the first defendant as well as the petitioner in the party array. It is the further case of the petitioner that the above suit itself filed by the second respondent is not maintainable under S.19 of the Act and, therefore, Ext. P5 judgment and decree is invalid and the same is a nullity. It is also the case of the petitioner that the suit itself is as a result of the collusion between the first and second respondents with the defendants in the suit to defeat the interest of the creditors of the first respondent, especially the interest of the petitioner herein in whose favour there is a judgment passed by the third respondent awarding compensation to the workman for the injury sustained by him. It is also the case of the petitioner that under S.14A of the Act, the compensation awarded by the third respondent is having a first charge on the property transferred by the first respondent in favour of the second respondent on the basis of Ext. P2 and P3 settlement deeds. It is also the case of the petitioner that in spite of Ext. P5 judgment, respondents 4 to 6 are bound to lake recovery steps under S.31 of the Act against the first respondent and his properties, including the properties transferred as per Exts. P2 and P3, which are now in the hands of the second respondent. He, therefore, prays for a declaration that the petitioner is entitled to recover the amount granted as per Ext. P1 together with interest and penalty from the properties covered by Exts. P2 and P3. He has also prayed for a declaration that Ext. P5 in respect of the property covered under Exts. P2 and P3 is illegal and without jurisdiction as the same is against the provisions of S.14A and 19(























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top