IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
AJAY MOHAN GOEL, J.
Oriental Insurance Company Ltd. - Appellant
Versus
Smt. Rattani Devi and another - Respondents
FAO No. 255 of 2014
Decided on : 02-03-2023
Employee’s Compensation Act, 1923 - Workmen’s Compensation Act – Appeal - Accident - Death - Seeking compensation - Whether award of Commission suffers from illegality and is unsustainable regarding employer-employee relationship in absence of any proof - Whether Commissioner has committed an error while arriving at conclusion that deceased suffered injuries during course of his employment under the Insured in absence of any employment proof on record - Hon’ble Supreme Court further held that the objective of the amendment was to remove a deeming cap on the monthly income of an employee and extend to them compensation on the basis of actual monthly wages drawn by them, however, there was nothing to indicate that the legislature intended for the benefit to extend to accidents that took place prior to the coming into force of the amendment. (Para 12).
Finding of Court :
Court will deal with substantial questions of law No. 3 and 4 - Accident in issue took place - Provisions of Section 4 of Employee’s Compensation Act, 1923, as they existed on date when unfortunate accident took place, inter alia in terms of Explanation (II) appended thereto provided that where monthly wages of a workman exceed Rs.4000/-, his monthly wages for purpose of (a) and (b) shall be deemed to be Rs.4000/- only - Explanation was omitted vide Act 45 of 2009 i.e. Section 7(A)(IV) - As already mentioned hereinabove in present case, accident took place and deceased also lost his life in said accident on same day - In light of said pronouncement of law by Hon’ble Supreme Court of India, award passed by learned Commissioner in terms whereof compensation has been assessed by placing reliance upon notification dated which came into force after date of accident, is not sustainable in law and same requires to be modified to extent that compensation payable to claimant has to be now reassessed by taking income of deceased at Rs.4000/- and then calculating compensation by taking 50% of same and multiplying it with relevant factor - As far as issue of imposition of interest on award upon insurance company is concerned, issue is also now no more res integra and learned Commissioner in fact has not committed any illegality in ordering award of interest at rate of 12% per annum, however, this also has to be modified to extent that interest is to be payable after one month as from the date of accident.
Result : Appeal stands disposed of
JUDGMENT :
Ajay Mohan Goel, J.
By way of this appeal, the appellant-Insurance Company has assailed award dated 25.04.2014, passed by the Court of Commissioner under the Employee’s Compensation Act, 1923, Bilaspur, District Bilaspur in WC No. 3/2 of 2011/10, titled Smt. Rattani Devi vs. Smt. Pushp Lata and another, in terms whereof, the claim petition preferred by respondent No.1 herein was allowed by the learned Commissioner in the following terms:-
2. This appeal was admitted on 23.02.2015, on the following substantial questions of law:-
2. Whether the Commissioner has committed an error while arriving at the conclusion that the deceased suffered injuries during the course of his employment under the Insured in the absence of any employment proof on record?
3. Whether the Award is unsustainable for the reason that the Commissioner has fell into error while applying the provisions of law with retrospective effect?
4. Whether the learned Commissioner was justified in imposing the interest on award amount upon the insurance company in the absence of any contract or statutory provision empowering him to do so?”
3. Brief facts necessary for the adjudication of the present appeal are as under:-
Respondent/petitioner (hereinafter referred to as the petitioner for convenience) filed a petition seeking compensation under the Workmen’s Compensation Act, on the grounds that her husband, namely, Bhim Singh was working as a Driver with Smt. Pushp Lata, engaged on vehicle No. Hyva No. HP 24A-457A and in the course of his employment on 28.10.2009, when he was plying said vehicle from Delag Gala to Ghagas, the same met with an accident, on account of which, Bhim Singh sustained multiple injuries, leading to his death. According to the claimant, the accident occurred on account of a mechanical defect. At the time of the accident, deceased Bhim Singh was getting a monthly salary of Rs. 6000/- per month and also Rs. 150/- as diet money and apart from this, he was also having some earning from the agriculture, which took his gross monthly earnings to be Rs.11,500/-. Compensation to the tune of Rs. 20,000,00/- was sought by the claimant. The owner of the vehicle admitted the case of the petitioner except the fact that late Bhim Singh was having any agricultural income.
4. The appellant-Insurance Company, resisted the claim petition inter alia on the ground that the same was not maintainable and that the vehicle was being driven by the deceased without any valid and effective licence and that there was no nexus between the death of the deceased and his employment.
5. On the basis of pleadings of the parties, the following issues were framed by learned Commissioner:-
2. If issue No. 1 is proved in affirmative whether the petitioner is entitled for the compensation to the tune of Rs. 20,00,000/- from the respondents on account of the death of Bhim Singh alongwith interest @ 12% per annum? OPP
3. Whether the petition is not maintainable in the present form? OPD
4. Whether the petition is incomplete, vague and without cause of action? OPD
5. Whether there is no nexus between the death and the emplo
Point of Law : Objective of amendment was to remove a deeming cap on monthly income of an employee and extend to them compensation on basis of actual monthly wages drawn by them, however, there was n....
Section 4 of Employee’s Compensation Act, 1923, existed when unfortunate accident took place.
The insurance company is liable for compensation under the Workmen’s Compensation Act when an employee-employer relationship is established, regardless of the driver's licensing status or the nature ....
Point of Law : 12. Liability of interest has to be borne by insurer as liability is attached to amount of awarded compensation under Act, which insurer is liable to indemnify and as necessary corolla....
The burden of proof and the retrospective application of amended provisions of the Act were the central legal points established in the judgment.
The central legal point established in the judgment is the assessment of the deceased's monthly wages in accordance with the provisions of the Employees Compensation Act and relevant case law.
The court emphasized that factual issues such as accident, employment relationship, and negligence are crucial in determining liability under the Employees Compensation Act.
The appellants were entitled to compensation for the employee's death as relationship with the employer was established, and the claim was not barred by limitation due to timing of civil death declar....
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