IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
B.A. Khan, J.
United India Insurance Co. Ltd. - Appellant
Versus
Gh. Qadir Dar & Ors. - Respondent
CIMA No. 121/1991
Decided On : 21 May, 1992
Insurance Company - Workmen's Compensation Act - Interpretation of 3rd Proviso to Section 30
Fact of the Case:
The appeal questioned whether an Insurance Company is bound to satisfy the requirement laid down in the 3rd Proviso of Section 30 of the Workmen's Compensation Act, specifically regarding the need for a certificate from the Commissioner certifying the deposit of the awarded amount.
Finding of the Court:
The court found that the Insurance Company, acting as a substitute for the employer, is equally bound to satisfy the requirements of the 3rd Proviso to Section 30, and failure to do so renders the appeal incompetent.
Issues: The main issue was whether an appeal by an Insurance Company under Section 30 of the Act is required to be accompanied by a certificate from the Commissioner, as mandated by the 3rd Proviso.
Ratio Decidendi: The court held that the Insurance Company, stepping into the shoes of the employer, must fulfill all requirements attached to the filing of the appeal, as it takes all available defense for the employer to avert liability.
Final Decision: The court dismissed the appeal as incompetent due to the Insurance Company's failure to comply with the requirements of the 3rd Proviso to Section 30 of the Act.
Learned counsel for respondent, Mr. R. Koul, submits that the appeal is incompetent as it falls short of the requirement.
Mr. Jamwal, on the other hand, contends that 3rd proviso to Section 30 is not attracted when appellant is the insurance Company. According to him, it is applicable when appellant is the employer.
2. In the face of these rival contentions, it requires to be examined whether or not the appellant Insurance Company was obliged to satisfy the statutory requirement and whether its failure to do so renders the appeal incompetent ?
The relevant provision reads as under :-
"Provided further that no appeal, by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealed against."
The Provision has come in for interpretation in a number of decisions and it is by now well-settled that requirement prescribed therein is mandatory and an appeal by an employer is not competent if the memo is not accompanied by the requisite certificate from the Commissioner. This, however, holds good in case of an appeal by an employer. The difficulty arises where an appeal is filed by the Insurance Company. This is so because the provision aforesaid does not recognise an insurer. Therefore, if it can be held that an insurer™s appeal is not covered by the provision, he would not be obliged to satisfy the requirement and the appeal would be competent despite the absence of requisite certificate.
3. It is true that Section 30 provides for an appeal by the employer and that it is he who is required to satisfy the requirement laid down therein. But since the Insurer steps into the shoes of the employer, files an appeal for and on behalf of him and takes all available defence for him to avert his liability, the re-fore he should be held liable to satisfy all requirements attached to the filing of appeal. Ju other words, if the Insurer™s right of appeal flows via the employer, it brings with itall liabilities and requirements. The insurer cannot be allowed to have the cake and eat it too. Being a substitute of the employer, the insurer is by all standards required to do all that the employer is obliged to do. Therefore, what the employer cannot do by himself cannot be done by the insurer on his behalf. On this parity of reasoning, since an employer is obliged to satisfy requirements of 3rd proviso to Section 30, the insurer is equally bound and if an employer™s appeal is rendered incompetent for falling short of prescribed requirement, insurers appeal suffers the same fate. Any other view would run counter to the reasoning, logic and basis on which the insurer™s appeal proceeds. I am fortified in my view by the reasoning adopted by the Kerala and Madya Pradesh High Courts in 1982 ACJ : 3 and 1986 ACJ : 1101, which is reproduced hereunder :-
"The insurer his only stepping into the shoes of the insured, the employer, and the defence is not qua insurer but in the name of the insured and in ids place. An appeal preferred on such grounds, if successful, will jeopardise the employee™s right to recover the compensation from the employer also. What the insurer seeks in such an appeal is that the insured may be found to be not liable to pay the compensation, and consequently. the insurer also may be hold to be not liable. The primary relief sought for is the first mentioned relief and the other relief is consequent to the grant of that relief. Hence such an appeal is preferred by the insurer for and on behalf
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