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2025 Supreme(Telangana) 622

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
LAXMI NARAYANA ALISHETTY, J.
New India Assurance Company Limited - Appellant
Vs.
Thatikonda Ashwini - Respondent
C.M.A. No.123 of 2025
Decided On : 07-04-2025


Advocates:
Advocate Appeared:
For the Appellant : V SAMBASIVA RAO
For the Respondent: ANNAPURNA SREERAM

Accidents occurring during the course of employment, regardless of the vehicle used, are compensable under the Employees' Compensation Act, emphasizing employer liability and the relevance of the notional extension doctrine.

Headnote:(A) Employees' Compensation Act, 1923 - Section 3(1) - Motor Vehicles Act, 1988 - Section 147(1) - The accident involving the deceased occurred during the course of employment, thereby establishing employer liability for compensation despite the deceased driving a motorcycle instead of the employer's lorry - The court upheld that accidents arising out of employment are compensable regardless of the mode of transport, leveraging the doctrine of notional extension. (Paras 10-13)

(B) Liability in Insurance Claims - Insurers cannot escape liability by merely stating the deceased was not using the insured vehicle; the employment relationship and nature of duty are crucial. (Paras 10-12)

Facts of the case:
The deceased, a driver for the respondent, met with a fatal accident while collecting money for diesel on instructions from his employer, confirming that he was on duty at the time. The claimants sought Rs.10,00,000/- in compensation due to loss of financial support and affection.

Findings of Court:
The Labour Court awarded compensation of Rs.8,21,030/- with 12% interest, recognizing the accident's occurrence during employment as the deceased was performing a duty-related task.

Issues: Whether the deceased was in the course of employment during the accident and which parties bear liability for compensation.

Ratio Decidendi: The court found the deceased met with an accident in the course of duty, emphasizing that transport mode does not affect employer liability in such contexts.

Result: Civil Miscellaneous Appeal dismissed.

Table of Content
1. overview of case and parties involved (Para 1 , 2 , 3 , 4)
2. arguments regarding insurance liability (Para 6 , 10 , 11)
3. judgment and order of the court (Para 9 , 14)
4. court's reasoning on employment status (Para 12 , 13)

JUDGMENT :

(LAXMI NARAYANA ALISHETTY, J.)

The present appeal has been filed by the appellant-insurance company challenging the order passed by the Commissioner for Employees’ Compensation and Assistant Commissioner of Labour- IV: T.Anjaiah Karmika Samkshema Bhavan, RTC X Roads, Hyderabad (for short, ‘Labour Court’)in E.C.No.197of 2018, dated 06.01.2025.

2. Heard Sri V. Sambasiva Rao, learned counsel for appellant- insurance-company, Smt. Annapurna Sreeram, learned counsel for respondent Nos.1 to 6, who is on caveat.

3. Appellant herein is the Insurance company, respondent Nos. 1 to 5 are claimants and respondent No.6 is the owner of the crime vehicle. For convenience, the parties hereinafter are referred to as they are arrayed before the Tribunal.

4. The brief factual matrix of the present appeal is as under.

4.1 One Sri Damodar (hereafter referred as ‘deceased’) is the husband of respondent No.1, father of respondent Nos.2 and 3 and son of respondent Nos. 4 and 5. Deceased worked as driver with the respondent No.6, on a lorry bearing No.TS 12 UB 2640 and while he was in duty on 25.07.2018, he was proceeding from Miryalguda to Hyderabad on the said lorry with load of paddy dust. When he reached Duppalaplly Village, he stoped the lorry for want of diesel and made a telephone call to his employer and on instructions of the employer, deceased while proceeding to Korivengudem on a motorcycle bearing No.AP 24 AX 1011, for collecting amount for diesel and on the way about 4.00 P.M, when he reached culvert bridge at the outskirts of Kananpally Village, Thipparthy Mandal, he lost control over the mototcycle and due to which motor cycle turned turtle on the culvert bridge and as a result, the deceased sustained grievous injuries on his head and other parts of the body. Deceased was taken to hospital and later shifted to Hyderabad and while shifting to Hyderabad, he died at 8.30 P.M. Based on the complaint, Thiparthy Police Station registered a case in Crime No.105 of 2018, under Sections 304-A of the IPC.

4.2. The claimants, i.e., parents and wife of the deceased, have filed claim petition against the opposite party Nos. 1 and 2, before the Labour Court, claiming compensation of Rs.10,00,000/- along with interest from the date of accident till the date of realization.

4.3 It is contended that deceased was hale and healthy, aged about 30 years and was earning Rs.15,000/- per month and a batta of Rs.200/- per day and used to contribute the same to the welfare of his family and due to sudden death, petitioners have lost their future hope love and affection of the deceased.

5. The opposite party, who is the owner of crime vehicle remained ex-parte.

6. The opposite party No.2, filed a counter denying the contents of the petition and contended that insured vehicle was not involved in the accident and the deceased was not driving the insured vehicle at the tile of the accident and in fact, he was driving a motor cycle. Therefore, Insurance company is not liable to pay any compensation to the deceased. They further averred that deceased was not an employee within the meaning of employees compensation Act, 1923 as the accident did not arise out of and in the course of the employment of the deceased and further denied that the driver was not having valid and affecting driving license as on the date of the accident. Hence prayed to dismiss the application.

7. On the basis of the above pleadings, the Tribunal framed the following issues:

i) Whether the deceased was an employee and met with an accident on 25.07.2018 during the course and out of his employment as driver on the lorry bearing No. TS 12 UB 2640 in the employment of O.P.1 and died?

ii) Who are liable to pay compensation to the applicants? And;

iii) What is the am

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