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2022 Supreme(P&H) 2133

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. Sandhawalia, J.
National Insurance Company Limited – Appellant
Versus
Smt. Simran & Ors. – Respondents
CM-8231-CII of 2019 in/and FAO-1946 of 2017
Decided On : 26-08-2022

Advocates appeared:
Mr. D.P.Gupta, Advocate, for the Appellant; Mr. S.R.Chaudhary, Advocate, for the Respondent.

The central legal point established in the judgment is the interpretation of the legal relationship of employer-employee and the validity of the driving license for the specific vehicle involved in the accident.

Headnote:

Employee's Compensation Act - Relationship of employer-employee - Validity of driving license - Legal relationship of employer-employee and validity of driving license were the key legal provisions discussed by the court. The court interpreted the relationship of employer-employee in the context of family employment and the validity of the driving license for the specific vehicle involved in the accident. These legal provisions influenced the court's decision in dismissing the appeal and ordering the disbursement of compensation to the claimants-respondents.

Fact of the Case:

The appeal arose from an award under the Employee's Compensation Act, 1923, directing the payment of a sum of Rs.6,66,998/- with interest to the claimants-respondents.

Finding of the Court:

The court found that the arguments raised by the Insurance Company were not sustainable, as the relationship of employer-employee was affirmed by the deceased's wife and the validity of the driving license for the vehicle involved was established.

Issues: The issues included the relationship of employer-employee and the validity of the deceased's driving license for the specific vehicle involved in the accident.

Ratio Decidendi: The court held that the legal relationship of employer-employee could be established even within a family employment context, and the deceased's driving license was valid for the vehicle involved in the accident.

Final Decision: The appeal was dismissed, and the compensation deposited with the Commissioner was ordered to be disbursed to the claimants-respondents.

JUDGMENT

G.S. Sandhawalia, J. (Oral) - CM-8231-CII-2019

1. Application has been filed for release of the awarded amount to the applicants without furnishing security.

2. With the consent of counsels for the parties, the main appeal is taken on Board today itself.

3. CM stands disposed of.

FAO-1946-2017 (O&M)

4. The present appeal arises out of the award of the Commissioner under the Employee's Compensation Act, 1923 (for short, the 'Act') dated 26.12.2016 vide which a sum of Rs.6,66,998/- had been directed to be paid along with interest @ 10% per annum from the date of the accident i.e. 01.06.2011 to the claimants-respondents.

5. Counsel for the Insurance Company has submitted that the substantial question of law which would arise for consideration is firstly that the deceased-Phool Singh was the son of the employer-Sat Pal and therefore, there was no positive material to show that there was a relationship of employer-employee, to bring the case within the ambit or jurisdiction of the Commissioner under the Act. Secondly, it is argued that the licence of the deceased was of a Light Motor Vehicle and admittedly, he was driving an ambulance and therefore, it is contended that he was not authorized to drive the said vehicle as it was not a valid driving licence and the ambulance being a transport vehicle. Therefore, the finding on issue No.4 that the deceased had a valid driving licence is wrong.

6. In the considered opinion of this Court, the arguments raised are not sustainable. Firstly, the wife of the deceased stepped into the witness-box and stated in affirmative qua the relationship of the employer-employee. Merely because the plea taken was that the father was the employer would not be a ground as such to come to any implied conclusion that the father cannot employ the son. It is not disputed that the death was on account of a road accident while coming back from Gorakhpur, U.P. where the deceased-Phool Singh had gone while driving his Omni vehicle while dropping a patient. It was a positive case that he was employed as a driver in the said vehicle. The wife-Simran had given her affidavit and was duly cross-examined. She stated that she and her children were living separately independently on the first floor of the house whereas the father-in-law used to stay on the ground-floor. It has also come on record that the father-in-law had divorced his wife. It is thus apparent that the father-in-law was living alone and was not staying with his son and daughter-in-law on the first floor. The father also appeared in the witness-box and was duly cross-examined and denied any such suggestion that the son was not the employee.

7. Merely because there was relationship of father and son and employer-employee would not be a ground to hold adversely on the ground that there was no employment inter se. Reliance has been rightly placed upon the judgment of the Uttarakhand High Court in United India Insurance Company Ltd. Vs. Baljeet Kaur & another 2008 (20) SCT 234 wherein also interference was not done while noting that the employer was the driver of the vehicle of the father.

8. Reliance can also be placed upon the judgment of the Karnataka High Court in New India Assurance Company Ltd. Vs. Gajanan D.Dengi & another 2008 (4) SCT 505, wherein it was noticed that it was not uncommon amongst the business family to engage their own kith and kin on employment for doing the business or commercial activity. Therefore, the legal relationship of employer-employee could always be a consideration in kind especially while referring to the rural life-style where a person employs family members for the purpose of running tractor-trailer etc. Similar view was also taken by the Karnataka High Court in Oriental Insurance Company Ltd. Vs. Ramesh & another 2016 ACJ 519. In such circumstances, this Court is of the considered opinion that the findings recorded by the Commissioner does not suffer from any infirmity on this account.

9. Regarding the second argument of i

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