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2025 Supreme(HP) 1750

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SUSHIL KUKREJA, J.
Oriental Insurance Company Limited - Appellant
Versus
Ram Pyari Gupta (since deceased through her Lrs) And Others - Respondents
FAO No. 234 of 2014
Decided On : 23-12-2025

Advocates Appeared:
For the Appellant :Mr. Deepak Gupta, Advocate.
For the Respondent:Mr. Vikrant Chandel, Advocate., Mr. Jai Dev Thakur, Advocate.

Claimants must prove disputed employer-employee relationship, especially between relatives, with cogent documentary and independent evidence; self-serving testimonies insufficient to impose insurer liability under compensation law.

Headnote:(A) Employees Compensation Act, 1923 - Sections 30 and 2 - Workmen compensation claim - Establishment of employer-employee relationship and accident arising out of/during employment essential - Burden on claimants to prove relationship where disputed, particularly with family ties - Mere self-serving testimonies of interested witnesses without documentary or independent evidence insufficient - Claim not bona fide if concocted to target insurer - Motorcycle policy does not cover workman risk absent specific WC policy - Lower court award set aside for lack of proof. (Paras 11-18)

Facts of the case:
Dependants of deceased filed claim alleging employment by vehicle owner who sent deceased on business errand; fatal accident occurred while returning on owner's insured motorcycle. Employer admitted employment but disputed wages. Insurer contested employment, driving license, policy involvement. Lower court allowed claim; insurer appealed raising substantial questions on evidence of employment and policy coverage.

Findings of Court:
No cogent evidence proving employment; only interested statements; award unsustainable.

Issues: Whether employment and wages proven by evidence? Whether vehicle policy covers workman absent WC policy?

Ratio Decidendi: Proof of employer-employee relationship requires cogent, satisfactory evidence including documentary proof and independent witnesses when disputed, especially between relatives; self-serving affidavits/testimonies inadequate; overall circumstances indicate non-bona fide claim against insurer.

Result: Appeal allowed; impugned award quashed and set aside.

Table of Content
1. dependents claim compensation for workman's fatal employment accident. (Para 1 , 2)
2. disputes on wages, insurance coverage, and driving license. (Para 3 , 4)
3. lower court awards claim; appeal challenges employment proof. (Para 5 , 6 , 7 , 8)
4. no evidence proves employment or workers' policy coverage. (Para 9)
5. claimants must prove employer-employee relationship and accident course. (Para 10 , 11 , 12 , 13)
6. interested witnesses insufficient without documentary employment evidence. (Para 14 , 15 , 16)
7. sibling employment claims suspicious absent independent proof. (Para 17 , 18)
8. appeal allowed; impugned award set aside. (Para 19)

JUDGMENT :

Sushil Kukreja, J.

The present appeal is maintained by the appellants/petitioners/claimants (hereinafter referred to as “the petitioners”), under Section 30 of the Employees Compensation Act, 1923 (for short “the Act”), against the award dated 10.03.2014, passed by the learned Civil Judge (Senior Division), Mandi, District Mandi, H.P., in W.C. Petition No. 24/2011, whereby the learned Commissioner had allowed the claim petition filed by the petitioners.

2. Succinctly, the facts giving rise to the present appeal are that the petitioners, being the dependants of deceased workman-Shri Sanjay Gupta, filed a claim petition before the learned Commissioner below seeking compensation of Rs.10,00,000/-. As per the petitioners, Sanjay Gupta (the deceased workman), was son of Smt. Ram Pyari Gupta (since deceased, through her LRs), husband of Smt. Asha Devi and father of Ms. Sakshi Devi @ Muskan and Ms. Gungun (all petitioners/claimants). The deceased was employed by respondent-Shri Mahesh Kumar Gupta, who was respondent No. 1 before the learned Commissioner below (respondent No. 5 herein) in his shop situated at Palace Colony, Mandi, on a monthly salary of Rs.20,000/-. On 19.04.2004, the deceased, in connection with the business of respondent No. 1, had gone to Kullu and while returning to Mandi, when he reached near nine-mile, near Pandoh, he met with an accident in which he died. As per the petitioners/claimants, the deceased died on account of accident during the course of his employment with respondent No. 1. The petitioners/claimants were dependents upon the income of the deceased and the deceased at the time of the accident was only 28 years old. Lastly, the petitioners/claimants prayed that their petition be allowed and compensation of Rs.10,00,000/- be granted in their favour.

3. Respondent No. 1-Shri Mahesh Kumar Gupta filed reply to the claim petition, wherein he admitted that the deceased was his employee and he died during the course of his employment. However, as per the replying respondent, the monthly wages of the deceased were Rs.5000/-. It was also admitted that the motorcycle, which the deceased was driving, met with an accident and it was owned by the replying respondent. The said motorcycle was duly insured with respondent No. 2-Oriental Insurance Company Limited (appellant herein) and in case of any liability towards the petitioners/claimants, respondent No. 2 is liable to indemnify the same.

4. Respondent No. 2-Insurance Company, in its reply, took preliminary objection of maintainability of the petition and on merits averred that the petitioners/claimants neither disclosed the particulars of the insurance policy nor the vehicle was involved in the accident. The replying respondent denied the claim in the absence of particulars of the insurance policy and non-involvement of the vehicle. It was denied that the deceased had income as alleged by the petitioners/claimants. The deceased was not having a valid and effective driving license. Lastly, it was prayed that the claim petition be dismissed.

5. The petitioners filed rejoinder to the reply filed by the respondent, wherein the averments made in the claim petition were reiterated. On 28.06.2012 on the basis of the pleadings of the parties, the learned court below framed the
following issues:

“1. Whether the peti

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