IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
LAXMI NARAYANA ALISHETTY, J.
The Oriental Insurance Co. Ltd., Rep. by its Branch Manager & Ors. - Appellants
Versus
Smt. Ganapuram Renuka, W/o. Late Ushaiah & Ors. - Respondents
Civil Miscellaneous Appeal Nos. 276 of 2013 & 14 of 2022
Decided On : 03-04-2024
Compensation - Workmen's Compensation Act - Section 167, Motor Vehicles Act - The court interpreted Section 167 of the Motor Vehicles Act, emphasizing that claimants can only pursue compensation under one act, not both, leading to the dismissal of the claim under the Workmen's Compensation Act due to res judicata.
Fact of the Case:
The deceased, a driver, died in a vehicle accident while working. Claimants sought compensation under the Workmen's Compensation Act after a previous claim under the Motor Vehicles Act was dismissed.
Finding of the Court:
The court found that the claim under the Workmen's Compensation Act was not maintainable due to the prior dismissal under the Motor Vehicles Act, invoking the principle of res judicata.
Issues: Whether the claim under the Workmen's Compensation Act is maintainable after a prior dismissal under the Motor Vehicles Act and if the previous judgment affects the current claim.
Ratio Decidendi: The court held that once a claimant opts for compensation under one act, they cannot pursue another for the same incident, as per Section 167 of the Motor Vehicles Act.
Result: The appeal by the insurance company was allowed, setting aside the Commissioner's award, and the claimants' appeal for enhanced compensation was dismissed.
JUDGMENT :
Laxmi Narayana Alishetty, J.
Heard Mr. A. Ramakrishna Reddy, learned standing counsel the appellant-insurance company and learned counsel Sri Y.S. Yella Nand Gupta for the appellants/claimants.
2. CMA No.276 of 2013 is an appeal filed by the insurance company to set aside the order dated 28.01.2013 in WC No.29 of 2011 and CMA No.14 of 2022 is an appeal filed by claimants to enhance the compensation amount. Considering the fact that these two appeals arise out of the same award dated 28.01.2013 passed in W.C.No.29 of 2011 by the Commissioner for Employees’ Compensation and Deputy Commissioner of Labour at Nizamabad (for short, ‘the Commissioner’), both appeals are heard together and decided by this common judgment.
3. The appellant in CMA No.276 of 2013 is the insurance company and the appellants in CMA No.14 of 2022 are the claimants before the Commissioner. For convenience, the parties hereinafter are referred to as they are arrayed before the Tribunal.
4. The brief facts leading to filing of the present appeal are that deceased—Ganapuram Ushaiah was working as driver on DCM van bearing registration No.AP-10-U-727 under the employment of O.P.No.1-owner of the DCM van and on 18.09.2006 under the instructions of the OP No.1, the deceased was driving the vehicle towards Hyderabad and when he reached near Imampoor village shivar, he lost control over the van and dashed APSRTC Bus, which came in opposite direction. As a result, the deceased was crushed in the cabin and died on the spot. The Police, P.S. Toopran, registered a case in Crime No.234/2016 against the deceased and since he died on the spot, subsequently, police closed the case as abated.
5. The deceased was aged 28 years, hale and healthy at the time of accident and used to contribute his earnings to the maintenance and welfare of his family. The claimants filed application under the provisions of the Employees’ Compensation Act, 1923 (for short, ‘the Act’) claiming compensation of Rs.10,00,000/- on account of death of deceased in an accident against the opposite party nos.1 and 2, who are the owner and insurer of the offending van.
6. The opposite party no.1-owner of the crime vehicle remained ex parte.
7. The opposite party no.2-insurance company, filed written statement denying all the material allegations mentioned in the application and further contended that there is no employer and employee relationship between the O.P.1 and the deceased. It is contended that amount of compensation claimed by the applicants with interest and costs are high, excessive, exorbitant and not in accordance with law and finally, prayed to dismiss the claim against the insurance company.
8. Basing on the above pleadings, the Commissioner had framed the following issues :
(ii) Whether the judgment in O.P.No.1/2009 by the IX ADJ MACT, Kamareddy has any bearing in this present case and accordingly decide the issue of liability to pay compensation?
(iii) What is the amount of compensation if any entitled by the applicants ?
9. In order to substantiate the case, the 1st applicant herself was examined as P.W.1 and Exs.A1 to A5 were marked on their behalf. On behalf of the opposite party No.2-insurance company, RW.1 was examined and Exs.B1 to B3 were marked.
10. The Commissioner, on due consideration of the evidence adduced and documents placed on record, awarded compensation of Rs.4,41,990/-.
11. During the hearing of the appeals, the learned standing counsel for insurance company in CMA No.276 of 2013 submitted that the award passed by the Commissioner is contrary to statutory law laid down under Section 167 of Motor Vehicles Act, as per which, the claimants are entitled to claim compensation either under W.C.Act or MV Act and not under both. Whereas in the pr
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The claimants' entitlement to compensation under Section 163A of the Motor Vehicles Act, 1988 was established based on the nexus between the cause of death and the accident, as well as the nature of ....
Under Section 167 of the Motor Vehicles Act, claimants can only pursue compensation under either the Motor Vehicles Act or the Workmen Compensation Act, not both for the same incident.
The main legal point established in the judgment is that Motor Accident Claims Tribunals cannot convert itself into the Court of Commissioner under the Employee’s Compensation Act.
: : (1) While compensation should not be assessed very conservatively, yet it should also not be assessed in a liberal fashion so as to make it a bounty to claimant.(2) Conception of “just compensati....
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