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2024 Supreme(JK) 531

HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR …
Pronounced on: 04.07.2024 Mir Manzoor Gazanfar S/o Haji Ghulam Rasool Mir R/o Pandrethen, Srinagar, Age 55 years Occupation: Business …….Petitioner(s)
Through: Mr Imran Ashraf, Advocate Versus
1. State of J&K through its Assistant Labour Commissioner District Srinagar
2. Ghulam Nabi Bhat F/o Late Farooq Ahmad Bhat S/o Ghulam Mohammad Bhat R/o Lariyar Tral, Pulwama ……Respondent(s)
Through: Mr Pervaiz Nazir, Advocate CORAM:
HON’BLE MR JUSTICE VINOD CHATTERJI KOUL, JUDGE 

The principles of natural justice require that both parties must be heard before any award is made under the Workmen’s Compensation Act, ensuring procedural fairness.

Headnote:(A) Workmen’s Compensation Act, 1923 - The principles of natural justice - The Labour Commissioner issued an ex parte award without hearing the petitioner, violating procedural fairness. The court emphasized the necessity of hearing both parties before passing any award. (Paras 1, 2, 4, 8)

(B) Ex parte proceedings - The court ruled that the Labour Commissioner must provide opportunities for both parties to present their cases, and failure to do so undermines the legitimacy of the proceedings. (Paras 5, 7, 9)

Facts of the case:
The petitioner challenged an ex parte award issued by the Labour Commissioner regarding compensation for the death of an employee during the course of employment. The claimant's son was killed while working at the petitioner’s hotel. The petitioner failed to present evidence despite multiple opportunities.

Findings of Court:
The court found that the Labour Commissioner acted within his authority and that the evidence supported the claimant's case. The petition was dismissed as meritless.

Issues: The main issues were whether the Labour Commissioner acted fairly in issuing the ex parte award and whether the petitioner was given adequate opportunity to defend against the claim.

Ratio Decidendi: The court held that the principles of natural justice require that both parties must be heard before any award is made, and the Labour Commissioner’s failure to do so rendered the proceedings unjust.

Result: Petition dismissed.

JUDGMENT :

1. Petitioner prays to quash Order dated 10th February 2016, passed by Commissioner Workmen’s Compensation Act (Assistant Labour Commissioner) Srinagar (for short “Labour Commissioner”), and direct it to hear petitioner de novo after setting aside ex parte motions.

2. According to petitioner, impugned order is contemptuous and collaterally largely prejudicial to the Order passed in OWP no.1715/2014 because Labour Court slated the matter for final arguments while plunging petitioner into ex parte again and passed ex parte award at the back of petitioner. It is also contention of petitioner that Labour Commissioner deliberately caused confusion in the proceedings which was motivated to usurp petitioner’s right to defend the matter as the asymmetrical directions intermittently issued by Labour Commissioner are not in sync with the procedure as the principles of natural justice demand inasmuch as ex parte award sought to be executed is without hearing him.

3. I have heard learned counsel for parties and considered the matter.

4. Respondent no.2 herein approached the Labour Commissioner with a claim petition, averring therein that his son, namely, Farooq Ahmad Bhat, aged about 29 years, was working in the hotel of petitioner, viz. Hotel Silver Star situated at Lasjan Bypass, Srinagar, as Bellcapten from 2007 and that on 19th October 2012, unknown militants fired on an Army Convoy near the hotel and during encounter his son who was on his routine duty was hit by bullet in the hotel premises while doing his routine work. Respondent no.2 sought compensation. His son was getting Rs.10,000/- monthly salary/income and was sole breadwinner of his family. Labour Court framed following issues:

(a) Whether the death of the deceased has occurred during and in the course of employment with the non-applicant?

(b) If so, whether the applicants are entitled to compensation under the provisions of Workmen’s Compensation Act, 1923?

(c)If so, to what extent.

5. Respondent no.2/claimant produced and examined four witnesses, which includes himself, before Labour Commissioner. The evidence of respondent no.2 was closed on 30th October 2013 and other-side was directed to produce evidence but they did not do so and, as such, right to produce evidence was closed by Labour Commissioner. In terms of judgement dated 26th April 2014, petitioner herein was directed to pay compensation amount of Rs.7,09,826/-.

6. As record would tend to show that an application was filed by petitioner herein before the Labour Commissioner under Order IX Rule 13 of the Code of Civil Procedure for setting-aside the judgement/Award dated 26th April 2014, which was, however, rejected vide order dated 30th August 2014. Against said order a petition, being OWP no.1715/2014, titled as Mir Manzoor Gazanfar v. State and another, was filed by petitioner herein. A Bench of this Court vide order dated 16th December 2014 set-aside the Labour Commissioner’s Order dated 30th August 2014, directing Labour Commissioner to pass fresh orders on petitioner’s application for setting-aside ex parte award after hearing both the parties. It was observed that petitioner herein had appeared before the Labour Commissioner and cross-examined some witnesses but later on remained absent and did not lead any evidence and as a result whereof case was decided in his absence. It was also said that application filed under Order IX Rule 13 CPC, which is applicable in view of Rule 42 of Workmen’s Compensation Rules, 1924, has to be decided on merits. While setting-aside the order dated 30th August 2014, this Court directed Labour Commissioner to pass fresh orders on the application of petitioner herein after hearing both the parties. The parties were directed by this Court to appear before the Labour Commissioner on 31st December 2014.

7. Perusal of the record on the file would reveal that on 17th January 2015, appellant herein was asked by the Labour Commissioner to lead evidence on 14th February 2015, but petit

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