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2021 Supreme(Ori) 202
IN THE HIGH COURT OF ORISSA, CUTTACK
Biswanath Rath, J.
Divisional Manager, Oriental Insurance Co. Ltd. - Appellant
Versus
Rashmita Swain & Ors. - Respondents
FAO No. 887 of 2019
Decided On : 03-08-2021
Mr.P.K.Mahali, Advocate, for the Appellant; Mr.R.Acharya, Advocate for Respondent Nos.1 To 4, Mr.S.K.Sahoo, Advocate, Mr.R.N.Mishra, A.G.A., for the Respondent.
Stricter action is necessary to check fraudulent attempts in obtaining awards under the Employees' Compensation Act.
Headnote:
FRAUD - Employees' Compensation Act - - Summary: The court found that there was a serious allegation of fraud in the institution of the claim proceeding and resulting award in favor of the claimants. The court directed an investigation by the Crime Branch, which revealed that the tractor and trolley were not involved in the incident and that fraudulent means were used to obtain the award. The court set aside the award and directed the lodging of an FIR and appropriate proceedings against the participants in the fraud transaction.
Fact of the Case:
The court found serious allegations of fraud in the institution of the claim proceeding and resulting award in favor of the claimants. The Crime Branch investigation revealed that fraudulent means were used to obtain the award.
Finding of the Court:
The court set aside the award obtained by fraud and directed the lodging of an FIR and appropriate proceedings against the participants in the fraud transaction.
Issues: Fraud in obtaining an award under the Employees' Compensation Act, involvement of the tractor and trolley in the incident, and complicity of the owner, claimants, and the Surveyor/Investigator of the Insurance Company.
Ratio Decidendi: The court cannot close its eyes to incidents of fraud in obtaining awards under the Employees' Compensation Act. Stricter action is necessary to check such attempts.
Final Decision: The court set aside the impugned award obtained by fraud, directed the lodging of an FIR, and ordered the return of the awarded amount deposited before the Competent Authority to the Company with interest.
ORDER
1. Filing the Appeal, it is stated, there is a serious allegation of fraud in the institution of the claim proceeding and resulting an award in favour of the Claimants also involved. By order dated 26.2.2020, this Court while admitting the Appeal to examine the allegation of fraud directed as follows :-
'Heard.
Admit.
For there is already appearance of respondents, adequate number of copies of the Appeal Memo be served on the learned counsel appearing for the respondents by 28.2.2020.
Considering the serious allegation that the claim application has been entertained by the Commissioner for Employees' Compensation-cum-Divisional Labour Commissioner, Cuttack on the pretext of involvement of the particular vehicle and owner on his appearance files affidavit indicating that his vehicle never involved in the incident, this Court refers the matter to the Crime Branch for having an investigation minimum at the level of D.S.P. into the allegation involved herein and submit report within a period of one and half months from the date of communication of certified copy of this order. Respective parties are directed to serve copies of claim, written statement in authority below, copy of evidence, copy of affidavit of the owner filed here and the impugned judgment on Sri S.Ghosh, learned A.S.C. for transmission of the same to the Vigilance Department for investigation and submission of report to the Court within one and half months.
A free copy of this order be handed over to the learned State Counsel for necessary action at their end.'
2. Today while taking up the matter following the above direction, this Court finds, there is already submission of report by one Sri S.N.Pradhan, Deputy Superintendent of Police, C.I.D., Crime Branch, Cuttack. From the report, there is clear disclosure that the tractor and trolley bearing Regn. Nos.OR-05-AH-9789 and OR-05-AH-9790 respectively were no way either directly or indirectly involved in the incident, i.e., on the death occurrence of one Ratnakar Swain. It has also been reported that such person was also never employed as a Labourer by the owner of the vehicle involved. It has been further reported therein that even the Surveyor/Investigator's report is also found to be devoid of any truth. It further reveals from the detailed report submitted by the Deputy Superintendent of Police, C.I.D., Crime Branch, Cuttack to the Superintendent of Police has the following conclusion :-
'Thus, it can be concluded that the Tractor and Trolley bearing Regd. No.OR-05-AH-9789 & OR-05-AH- 9790 is no way either directly or indirectly involved in the incident i.e. on the death occurrence of one Ratnakar Swain, S/o.Mohan Swain of Village-Potal, P.S.-Pipili, Dist.-Puri and he was never before employed as a Labourer by its owner.
Nilamani Mohapatra S/o.Late Fakira Mohapatra of Village-Nuapada P.S.-Kantigadia P.S.-Dharamsala, Dist.- Jajpur & Sri Basudeb Barik, S/o. Chamar Barik of Village- Karamakasi, P.S.-Rengalidam Site, Dist.-Angul (Advocate, Orissa High Court) A/p.Plot No.5F-645, Sector-9, CDA, Cuttack by adopting dishonest/fraudulent means produced manufactured/forged documents and more over, Smt. Rasmita Swain W/o.Ratnakar Swain of Village-Potal, PS-Pipili, Dist.Puri and others (Nilamani Mohapatra and Prahallad Pradhan S/o.Late Kumar Pradhan of Village-Murdhanipur, P.O.-Khellaur, P.S.-Pipili, Dist.-Puri) by adducing false evidence in E.C. Case No.376-D of 2015 in the Court of Commissioner for E.C.-cum-DLC, Cuttack (i.e. the deceased Ratnakar Swain succumbed to his injuries during course of his employment in the Tractor & Trolley bearing Regn. No.OR- 05-AH-9789 & OR-05-AH-9790) could manage to get the judgment order dated 16.8.2019 amounting to Rs.11,29,296/- as compensation. Moreover, it is ascertained during enquiry that Sri K.C.Bal, the Surveyor/Investigator of Oriental Insurance Co. Ltd., Bhubaneswar had the occasion to enquiry into the subject matter of accidental death of deceased Ratnakar Swain having been enga
