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2025 Supreme(HP) 1698

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SUSHIL KUKREJA, J.
New India Assurance Company Ltd. - Appellant
Versus
Sheela & Ors. - Respondents
FAO No. 4146 of 2013
Decided On : 16-12-2025

Advocates Appeared:
For the Appellant :Mr. B.M. Chauhan, Senior Advocate with Mr. Amit Himalvi, Advocate.
For the Respondents:Mr. N.D. Sharma, Advocate,

Claimants must prove genuine employer-employee relationship with cogent evidence, especially documentary proof, when deceased is family member of owner; self-serving testimonies and fabricated documents insufficient to impose liability on insurer.

Headnote:(A) Employee’s Compensation Act, 1923 - Section 30 - Appeal by insurer against award under the Act - Death of driver in vehicle accident - Deceased alleged to be employed as paid driver by vehicle owner, who was his father - Claimants failed to prove employer-employee relationship despite opportunity post-remand - No cogent documentary evidence; diary extract inadmissible as fabricated and manipulated - Oral testimonies self-serving and interested; no independent witnesses - Claim not bona fide but concocted to target insurer - Award holding insurer liable set aside as perverse. (Paras 13, 14, 16, 17, 19, 20)

Facts of the case:
Driver employed by owner met with accident and died on spot; claimants, his dependents, sought compensation under the Act; owner admitted employment post-remand via unreliable diary; insurer contested absence of employment contract, valid licence, policy compliance; lower court awarded compensation against insurer after remand.

Findings of Court:
No proof of employment relationship; impugned award quashed; insurer exonerated.

Issues: Whether employer-employee relationship proved between owner and deceased driver (family member); whether insurer liable absent genuine employment; whether evidence post-remand sufficient.

Ratio Decidendi: In family member employment claims under the Act, claimants bear onus to establish relationship via cogent, preferably documentary, evidence; self-serving statements and fabricated documents insufficient; claims scrutinized for bona fides to prevent collusion against insurer; beneficial legislation does not permit accident as bonanza for non-genuine claims. Result : Appeal allowed.

Table of Content
1. driver employed by owner died in vehicle accident. (Para 1 , 2)
2. parties dispute employment, insurance liability, policy compliance. (Para 3 , 4 , 5)
3. commissioner awarded compensation against insurer; appeal filed. (Para 6 , 7)
4. insurer contests family employment; claimants affirm paid driver. (Para 9 , 10)
5. remanded to prove employment per supreme court precedent. (Para 11 , 12)
6. no cogent evidence proves employer-employee relationship. (Para 13 , 14 , 15 , 16 , 17 , 18)
7. bona fide employment requires documentary proof beyond presumption. (Para 19 , 20)
8. appeal allowed; impugned award set aside. (Para 21)

JUDGMENT :

SUSHIL KUKREJA, J.

The present appeal is maintained by the appellant/Insurance Company, against the award passed by the Court of learned Commissioner (IV), Shimla, exercising power, under Employee’s Compensation Act, 1923, in Case No. RBT 18-2 of 11/09, decided on 18.07.2013.

2. The brief facts of the case as set up by the claimants are that on 17.11.2008, while Ramakant alias Pankaj (since deceased), who was employed by Ram Swaroop (respondent No. 1 before the learned Court below) as driver in his vehicle bearing registration No. HP-09A- 2085, was discharging his duties as driver, the aforesaid vehicle met with an accident and deceased died on the spot. It has been averred that at the time of accident, deceased was 28 years of age, hale and hearty and was maintaining the claimants, who were totally dependent upon him. Consequntly, prayer for allowing the petition and awarding compensation was made.

3. On notice, the respondents contested the petition by filing different sets of replies. The employer i.e. Respondent No. 1 in his reply, took preliminary objections qua maintainability, that the vehicle in question was comprehensively insured with respondent No. 2,that the driver of the vehicle was fully insured with respondent No. 2, that the driver of the vehicle was possessing valid and effective driver licence at the time of accident, as such, Insurance Company was liable to indemnify the respondent etc. have been taken. On merits, contents of paragraphs No. 1 to 5 of the petition were admitted to be correct. It has been averred that respondent No.1 may be exonerated from the liability and Insurance Company may be directed to indemnify the owner.

4. The Appellant Insurance Company(respondent No. 2 before the learned Court below) in reply took preliminary objections qua maintainability, that deceased was not an employee with respondent No. 1 (owner), that deceased was not holding effective and valid driving licence at the time of accident and vehicle was being driven in breach of terms and conditions of the policy, that the vehicle was being plied without valid registration certificate, route permit and fitness certificate etc.pettion being bad for mis- joinder of necessary parties and being filed in collusion with respondent No. 1, who was father of the deceased, have been taken. On merits, it was denied that deceased Ramakant was employed as paid driver by respondent No. 1 in vehicle No. HP-09A-2085. It is averred that deceased had not died during the course of his employment and there was no contract of employment between the deceased and respondent No. 1. Lastly, prayer for dismissal of the petition has been made.

5. On pleadings of the parties, the following issues were framed:-

“1. Whether present petition is maintainable in this present form? OPP

2. Whether the claimant is entitled to compensation, if so, to what extent and from whom? OPP

3. Whether there exists any relationship of employer and employee between the claimant and respondent No. 1? OPP

4. Whether the vehicle in question was insured at the time of accident? OPR-1

5. Whether the deceased was not having valid and effective driving licence at the time of accident? OPR-2

6. Whether the vehicle in question was being plied in contravention to the terms and conditions of the Insurance policy? OPR-2







7. Whether the insurance company is


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