IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Karamjit Singh, J.
HDFC Ergo General Insurance Company Ltd. - Appellant - Appellant
Versus
Sumitra Devi & ors. - Respondents - Respondent
FAO-5032 of 2015
Decided On : 09-10-2023
Employees Compensation Act - Assessment of Monthly Wages - Section 5, Section 30, Jaya Biswal and Ors. vs. Branch Manager, IFFCO Tokio General Insurance Co. Ltd. and Another, 2016(11) SCC 201, Golla Rajamma and Another vs. Divisional Manager and Another (2017)1 SCC 45, Civil Appeal No.4713-2023 Fulmati Dharmdev Yadav and Another vs. New India Assurance Company Ltd. and Another decided on 4.9.2023 - The court assessed the monthly wages of the deceased as Rs.8,000/- in accordance with the provisions of the Employees Compensation Act and relevant case law. The appeal was dismissed as no substantial question of law was raised by the appellant-Insurance Company.
Fact of the Case:
The deceased, Monu Singh, was working as a Helper/Cleaner on a truck-container owned by Gurdev Singh and insured with the appellant-Insurance Company. He met with an accident during the course of employment and sustained fatal injuries. The Commissioner determined the total compensation as Rs.9,00,880/- and held the employer and the Insurance company jointly and severally liable to pay the compensation.
Finding of the Court:
The Commissioner found in favor of the claimants, holding that there was a relationship of employer and employee between Gurdev Singh and the deceased, and that the total salary of the deceased was Rs.8,000/- per month. The appeal filed by the Insurance Company was dismissed by the court.
Issues: The main issue was the assessment of the deceased's monthly wages and the liability of the employer and the Insurance Company to pay compensation.
Ratio Decidendi: The court relied on the provisions of the Employees Compensation Act and relevant case law to assess the monthly wages of the deceased and determine the liability of the employer and the Insurance Company.
Final Decision: The appeal filed by the appellant-Insurance Company was dismissed by the court.
KARAMJIT SINGH, J.
1. This appeal is filed by appellant Insurance Company against the order dated 16.12.2014 passed by the Commissioner under Employees Compensation Act, Patiala (in short the Commissioner).
2. The brief facts of the case of the Claimants-Respondent Nos.1 & 2 are that their son Monu Singh @ Baljinder Singh was aged about 20 years and he was working as a Helper/Cleaner on a truck-container No.HR-55M-7693 which was owned by respondent No.3-Gurdev Singh and was insured with appellant-Insurance Company. On 26.06.2013 Monu Singh went along with the said truck to Muradabad and after unloading the goods, he had gone to Gandhi Nagar along with the said truck as a Helper/Cleaner and the said truck met with an accident on 26.06.2013 and at that time the truck was driven by Sham Singh and due to the aforesaid accident Monu Singh sustained multiple injuries and was taken to hospital where he was declared dead. FIR No.1-89/2013 dated 26.06.2013 was recorded in the concerned Police Station with regard to the aforesaid accident. That the deceased used to earn more than Rs.10,000/- per month as his monthly salary as a Cleaner on a truck was Rs.4,000/- and he also used to earn another Rs.6,000/- to Rs.7,000/- per month by doing work of loading-unloading of the goods from the said truck.
3. On notice respondent No.3-Gurdev Singh appeared in the Court of Commissioner and filed written statement wherein he admitted the relationship of employer and employee between him and the deceased and he also admitted that the deceased met with an accident during the course of employment and he also admitted the fact regarding ownership of the truck in question. However while praying for dismissal of the claim application, respondent No.3 pleaded that the monthly wages of Monu Singh were Rs.3,000/-.
4. The claim application was also contested by appellant Insurance Company on the ground that the same is not maintainable. The relationship of employer and employee between Gurdev Singh and the deceased was also denied and it was further pleaded that the Court at Patiala is having no jurisdiction to entertain the compensation application. The other averments of the claim application were also denied.
5. On the pleadings of the parties, the following issues were framed by the Commissioner, for disposal of the claim application:-
2. Whether the claimant is entitled for compensation as claimed? if yes, with what details ? OPA
3. Relief, if any.
6. The counsel for the claimants examined claimant No.1 Sumitra Devi as PW-1 and she produced copy of FIR dated 26.06.2013 Ex. P-1 and its hindi transcription Ex. P-1/A, attested copy of Panchnama Ex. P-2, post mortem report of deceased Ex. P-3, Death certificate of deceased Ex. P-4, copy of Insurance Police Ex. P-5, copy of Registration Certificate of truck No.HR-55M-7693 (Annexure P-6) and copy of driving licence of Sham Singh Ex. P-7.
7. On the other hand, the respondents i.e. employer and Insurance Company failed to adduce any evidence in support of their defence and finally their evidence was closed by order, by the Commissioner.
8. After hearing counsel for the parties, the Commissioner decided issues No.1 & 2 in favour of the claimants-respondents No.1 & 2 and held that there was relationship of employer and employee between respondent No.3-Gurdev Singh and the deceased and that total salary of the deceased was Rs.8,000/- per month and the age of the deceased was taken as 19 years on the basis of the post mortem report Ex. P-3. The total amount of compensation was calculated as per the schedule IV and multiplier of 225.22 was applied and accordingly the total compensation was assessed as Rs.9,00,880/- (Rs.8,000 X 50% X 225.22) by the Commissioner while passing the impugned award. The employer and the Insurance company were held jointly and severally liable to pay
Jaya Biswal and Ors. vs. Branch Manager, IFFCO Tokio General Insurance Co. Ltd. and Another
Golla Rajamma and Another vs. Divisional Manager and Another
The central legal point established in the judgment is the assessment of the deceased's monthly wages in accordance with the provisions of the Employees Compensation Act and relevant case law.
Point of Law : Objective of amendment was to remove a deeming cap on monthly income of an employee and extend to them compensation on basis of actual monthly wages drawn by them, however, there was n....
Section 4 of Employee’s Compensation Act, 1923, existed when unfortunate accident took place.
Point of Law : 12. Liability of interest has to be borne by insurer as liability is attached to amount of awarded compensation under Act, which insurer is liable to indemnify and as necessary corolla....
The High Court dismissed the appeal, upholding the Commissioner's wage determination due to lack of evidence, thus affirming the procedural compliance under the Employees Compensation Act.
Compensation under the Employees' Compensation Act must adhere to statutory minimum wages, ensuring accurate wage calculations for deceased employees.
The court held that the Commissioner must adhere to the wage cap of Rs. 8,000/- as per the Central Government notification when calculating compensation under the Employees Compensation Act.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.