Point of Law: Sub-section (1) of Section 3 of Employees Compensation Act provides that if personal injury is caused to a workman by accident then his employer shall be liable to pay compensation.

JUDGMENT :

Ajay Mohan Goel, J.

By way of this appeal, the appellant/ Insurance Company assailed order dated 04.12.2018, passed by learned Commissioner, Under Employees’ Compensation Act, 1923, Kinnaur at Reckong Peo, District Kinnaur, H.P., in case No.6-2 of 2013, titled as Smt. Jeet Mani & others Versus Smt. Heera Mani and another, in terms whereof, the claim petition preferred by the respondents/claimants under Section 22(1) of the Employees’ Compensation Act, was decided in the following terms :-

“55. As a result of partly allowing the petition, petitioners are held entitled to the compensation to the tune of Rs.8,73, 880.00 and interest w.e.f. 04.02.2012 (i.e. one month after the date of accident) to 04.12.2018 i.e. 6 years and 10 months, which comes to Rs.8,73,880.00, in total, Rs.15,90,462.00 from respondents No.2 and 3, in equal proportions.

56. Both respondents No.2 and 3 shall be indemnified to the entire amount of compensation alongwith interest by respondent No.4 being an Insurance Company.”

2. This appeal was admitted on 21.10.2022 on the following substantial questions of law :-

“1. Whether impugned award awarding the amount of compensation to claimants deserve to be set aside or modified because the claim in respect of driver of insured vehicle was not covered by the policy of insurance as no premium in respect of the paid driver was paid by the owner/insured and owner/insured to this extent had contracted out?

2. Whether learned Commissioner, employee’s Compensation, while passing the impugned Award had failed to appreciate that since accident had occurred while the deceased was driving vehicle negligently under influence of the intoxicating liquor (As per RFSL, the quantity of alcohol in his blood was reported to be 291.97 mg%) which was in excess of the permissible limit and this led to the accident in question, hence, the liability of payment of compensation amount to claimants could not be foisted on appellant-insurer and the impugned award is liable to be set aside?

3. Brief facts necessary for the adjudication of the present appeal are that the respondents/claimants (hereinafter to be referred as the ‘claimants’) filed a claim petition, inter alia, on the ground that their predecessor-in-interest, i.e. husband of claimant No.1 and father of claimants No.2 and 3 was engaged as a driver of vehicle (Car) bearing registration No.HP 25A-1446. The owner of the vehicle was one Shri Ishwar Lal and the deceased was engaged as a driver on the said vehicle on monthly salary of Rs.3,500/-per month and in addition, he was also been paid an amount of Rs.150/-per day as daily expenses for his food etc. According to the claimants, the driver of the car lost his life in an accident involving the said vehicle which he was driving at the relevant time on 04.01.2012. The owner of the vehicle was in the vehicle and the same was being driven for business purpose from Shong to Tapri. The accident took place near a place known as Tilagech in District Kinnaur. According to the claimants, after the accident as the owner of the vehicle did not compensate the claimants in terms of provisions of the Employees Compensation Act, hence the claim petition.

4. In terms of the claim petition, the claimants prayed for payment of compensation to the tune of Rs.8,00,000/- alongwith interest and penalties.

5. The petition was resisted by owner of the vehicle (As the owner of the vehicle died during the pendency of the proceedings before learned Commissioner, he was substituted by his legal representatives). In the reply, though the factum of the accident was admitted so also the factum of death of driver in the same, however, the salary as was mentioned in the claim petition was not admitted and it was stated that the same was exaggerated. It was further the stand of owner of the vehicle that the ill-fated vehicle was duly insured with the Insurance