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2025 Supreme(Telangana) 1130

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NARSING RAO NANDIKONDA, J.
UNITED INDIA INSURANCE CO LTD., - Appellant 
Versus
KHAIRUNBEE AND ANOTHER – Respondent 
C.M.A. No. 302 of 2015
Decided On : 11-09-2025 

Advocates:
Advocate Appeared:
For the Appellant : A RAMAKRISHNA REDDY
For the Respondent: K VENKATESH GUPTA

The court affirmed familial relationships can constitute valid employer-employee dynamics under the Workmen's Compensation Act, supporting compensation claims based on such relationships.

Headnote:(A) Workmen’s Compensation Act, 1923 - Section 30 - Claim for compensation - Understanding of employee-employer relationship in context of family members - The deceased, while employed as a driver, sustained injuries leading to death due to an accident during employment. The insurer denied the existence of an employee-employer relationship, claiming the application was collusive and delayed, but court found the deceased falls within the Act's definition of a workman. The assistant commissioner awarded Rs.4,23,222/- with 12% interest which was upheld. (Paras 1, 9, 20, 21)

(B) Employer-Employee Relationship - The court emphasized the possibility of familial relationships constituting valid employer-employee dynamics, rejecting arguments that familial ties negate such a relationship. (Paras 16, 18).

Facts of the case:
The applicant claimed compensation following her son’s death as a driver during the course of employment in an accident involving a Jeep, asserting joint liability of the employer and insurer despite opposition claims of non-employment.

Findings of Court:
The deceased was considered an employee under the Act, with an award of compensation upheld.

Issues: The key issue dealt with the legitimacy of employee-employer relationship within familial contexts under the Act.

Ratio Decidendi: The court clarified that familial ties do not preclude an employer-employee relationship under the Act, particularly in light of evidence supporting such a claim.

Result: Appeal dismissed.

Table of Content
1. appeal filed under workmen’s compensation act. (Para 1 , 2)
2. facts of the case regarding the deceased and accident. (Para 3 , 4 , 5)
3. denial of employer-employee relationship by opposite party no.2. (Para 6 , 7)
4. evidence presented by both parties. (Para 8 , 9)
5. arguments and appeals by opposite party no.2. (Para 10 , 12)
6. court's examination of applicant's evidence. (Para 13 , 14)
7. consideration of employee-employer relationship. (Para 15)
8. precedents on employer-employee relationships in family cases. (Para 16 , 17)
9. court's conclusion on the validity of the claim. (Para 18 , 19)
10. final ruling confirming the lower court’s decision. (Para 20 , 21)

JUDGMENT :

NARSING RAO NANDIKONDA, J.

1. This appeal is preferred by the appellant-United India Insurance Company Limited under Section 30 of the Workmen’s Compensation Act, 1923 (for short ‘the Act”), against the order, dated 10.03.2015 passed in W.C.No.122 of 2013 by the Commissioner For Employees’ Compensation and Assistant Commissioner of Labour-IV, Hyderabad (herein after referred to as “the Asst. Commissioner of Labour”).

2. For the sake of convenience, the parties will be referred to herein before the Authority.

3. Brief facts of the case are that the applicant had filed a claim-petition under the provisions of the Act, for the death of her son by name Asif Pasha (hereinafter referred to as “the deceased”) claiming compensation against the employer of the deceased i.e. owner of the Jeep bearing No. AP 22 U 3599 and also against the insurer of the said Jeep, United Indian Insurance Company Limited, Hyderabad. It is stated that the deceased was an employee as driver under the employment of opposite party No.1. During the course of employment on 26.11.2007, as per the instructions of 1st opposite party the deceased was proceeding on the Jeep bearing No. AP 22 U 3599 from Makthal to Narayanpet and when he reached the limits of Thipraspally Village, the driver of one DCM Van was coming from opposite direction and both the jeep and the Van are collided. As a result of which, the deceased had to sustain severe fracture injuries. Immediately after the accident, the deceased was shifted to Area Hospital, Narayanpet and from there he was shifted to Government Hospital, Mahabubnagar, where he died while undergoing treatment.

4. Basing on a complaint, the Police, Utkoor, registered a case in Crime No.55 of 2007 for the offences punishable under Sections 304-A and 337 of I.P.C.

5. It is stated that the deceased was aged about 21 years and was earning Rs.6,000/- per month and Rs.100/- per day towards batta. It is further stated that in view of the death of the deceased, the applicant lost her son. It is further stated that the accident occurred during the course of employment and as such opposite party No.1 being the employer of the deceased and opposite party No.2 being the insurer of the said Jeep are jointly and severally liable to pay the aforesaid compensation.

6. Opposite Party No.1 did not file the counter. Opposite Party No.2 filed counter denying the averments made in the application and also denied that the applicant is the legal representative of the deceased and also denied that the deceased was an employee within the meaning of the Act. It is specifically contended that there is no employee and employer relationship between the deceased and Opposite Party No.1. It is further denied the employment of the deceased as driver of the Jeep, mode and manner in which the accident occurred, age and income of the deceased. It is specifically contended that the accident did not occur during the course of employment. It is further contended that the deceased was not having valid and effective driving licence at the time of the accident and there is no valid permit and fitness certificate to show that the said Jeep was road worthy to ply on the road. Further, as Opposite Party No.1 is the father of the deceased there is no employer and employee relationship between t

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