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2009 Supreme(J&K) 555

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Gh. Hasnain Massodi, J.
Zoona & Ors. - Appellant
Versus
Gh. Hassan Khanday & Ors. - Respondent
CIMA No. 83/2009
Decided On : 18 December, 2009

Advocates Appeared:
Advocate For Appellant: M. Ashraf Wani
Advocate For Respondent: None

The requirement of a valid driving license under the Workmans Compensation Act and its impact on the liability of the employer and the insurance company.

Headnote:

Workmans Compensation Act - Valid Driving License - Section 22 - 1, 2, 3, 4, 13, 14, 15, 149 of Motor Vehicles Act - Summary: The court discussed the requirement of a valid driving license under the Workmans Compensation Act and the Motor Vehicles Act, and its impact on the liability of the employer and the insurance company. The court held that while a valid driving license may not be a requirement under the Workmans Compensation Act, it could be a requirement under the agreement between the insurance company and the employer. The court also cited previous cases and legal provisions to support the decision.

Fact of the Case:

The deceased's dependents filed for compensation under the Workmans Compensation Act after a fatal accident. The application was dismissed by the Commissioner due to the deceased not having a valid driving license at the time of the accident.

Finding of the Court:

The court found that the deceased's lack of a valid driving license did not absolve the employer from liability, but it did exonerate the insurance company from paying compensation. The court held the employer liable to pay compensation to the dependents of the deceased.

Issues: Validity of driving license as a requirement for compensation, liability of employer and insurance company, interpretation of Workmans Compensation Act and Motor Vehicles Act.

Ratio Decidendi: The court held that while a valid driving license may not be a requirement under the Workmans Compensation Act, it could be a requirement under the agreement between the insurance company and the employer. The court also cited previous cases and legal provisions to support the decision.

Final Decision: The appeal failed against the insurance company but succeeded against the employer, who was held liable to pay compensation to the dependents of the deceased. The matter was remanded to the Commissioner to determine the exact amount of compensation.

1. Sh. Shabir Ahmad Khanday-son of petitioner No.1 and brother of petitioner Nos. 2 to 5, driving loaded truck No.JK-03/8373 owned by the respondent No.1 met a fatal accident on 9th of July, 2007 at Cafeteria More, Ramban. The truck due to mechanical defect rolled down deep into River Chenab resulting in death of its driver-Shabir Ahmad Khanday as also conductor of the truck-Sh. Ashfaq Ahmad. The petitioners on 01.12.2007 approached Commissioner under Workmans Compensation Act (Assistant Labour Commissioner, Sringar), with an application under Section 22 of the Workmans Compensation Act claiming therein that the deceased-Shabir Ahmad Khanday was an employee of the respondent No.1 and that his death arose out of his employment and that the petitioners were entitled to receive compensation from the respondent No.2Insurance Company, who had indemnified the respondent No.1 against any third party claim in the event of any accident to the insured vehicle. The petitioners asked for an amount of Rs.60,00,000/- as compensation with interest at the prevalent bank rates from the date of accident to the date of payment. The petitioners also prayed for adequate compensation on account of mental agony, suffering and funeral expenses.

2. The respondent No.1 in his reply/written statement admitted the deceased-Shabir Ahmad Khanday to have been his employee and did not dispute petitioners claim as regards monthly salary paid by respondent No.l to the deceased. The respondent No.1, however, insisted that the Insurance Company with which the vehicle was insured was to be saddled with the liability to pay the compensation amount. The respondent No.2-Insurance Company did not contest the application before the Commission under the Workmans Compensation Act. The Commissioner under Workmens Compensation Act after recording the evidence and going through the application, reply of respondent No.1 and the evidence brought on file dismissed the application with costs assessed at Rs.3000/-

3. The application for granting compensation did not find favour with the Commissioner under Workmens Compensation Act for the reasons that the deceased at the time of the accident was not having a valid driving license. The Commissioner found that the driving license of the deceased was issued by Licensing Authority, MVD (Motor Vehicles Department), Rajouri, Poonch on 18th of October, 1999 and was renewed only up to 17th of October, 2002. It was found that the deceased driver had not got the driving license renewed on or after 17th of October, 2002 and thus had no valid driving license on 9th of July, 2007 when the fatal accident took place. What shocked the Commissioner was that the petitioners had connived to get the license renewed with effect from 01.11.2007 little realizing that the deceased had breathed his last on 09.07.2007. In the opinion of the Commissioner, the petitioners had in connivance with each other committed a fraud and got driving license renewed in favour of a dead person. The Commission on this ground alone found the application for compensation without any merit and held the dependents of the deceased driver not entitled to any compensation under the Workmans Compensation Act.

4. The order of Commissioner under Workmans Compensation Act dated 31st of March, 2009 is assailed herein on the grounds that the Commissioner after having found the deceased to be a workman within the meaning of the Workmans Compensation Act, under employment of the respondent No.l and the accident to have arisen out of the employment had no power or authority to reject the application for compensation. It is insisted that the application for compensation has been dismissed on irrelevant and erroneous grounds and the Commissioner has fallen in error by throwing out the application on the ground of the deceased having no valid driving license on the date of the accident. The Commissioner is said to have been influenced by irrelevant considerations and not to have followed th

















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