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2022 Supreme(Online)(Kar) 52921

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MFA No. 21040 of 2010

C/W MFA No. 21326 of 2010

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 02ND DAY OF JUNE, 2022

BEFORE

THE HON'BLE MR JUSTICE P.KRISHNA BHAT

M.F.A. NO.21040 OF 2010 (WC-)

C/W

M.F.A.NO.21326 OF 2010

IN M.F.A. NO.21040 OF 2010

BETWEEN:

THE DIVISIONAL MANAGER

NWKRTC DIVISIONAL OFFICE SIRSI,

DIST:KARWAR AND THE APPELLANT IS

REPRESENTED BY ITS CHIEF LAW OFFICER,

CENTRAL OFFICE, HUBLI

…APPELLANT

(BY SRI. SHIVAKUMAR S BADAWADAGI, ADVOCATE)

AND:

1.

SMT BASAWWA W/O TIPPANNA HUBLI

AGED ABOUT 41 YEARS,

OCC:HOUSEWIFE,

R/O KADASIDDESHWAR ONI,

SAUNDATTI, DIST:BELGAUM

2.

KUMARI. CHANNAMMA D/O TIPPANNA HUBLI

AGED ABOUT 15 YEARS,

R/O. KADASIDDESHWAR ONI,

SAUNDATTI, DIST:BELGAUM

MINOR REPRESENTED BY HER

NATURAL MOTHER RESPONDENT NO.1

3.

IRANNA S/O TIPPANNA HUBLI

AGED ABOUT 9 YEARS,

Digitally signed

by JAGADISH T R

Location: HIGH

COURT OF

KARNATAKA,

DHARWAD

Date: 2022.06.06

11:02:19 +0530

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MFA No. 21040 of 2010

C/W MFA No. 21326 of 2010

R/O. KADASIDDESHWAR ONI,

SAUNDATTI. DIST:BELGAUM

MINOR REPRESENTED BY HIS

NATURAL MOTHER RESPONDENT NO.1

4.

ASHOK SHETTY S/O ANAND SHETTY,

AGE MAJOR, OCC:OWNER OF BUS

BEARING NO.KA-20/A-3859,

R/O LAXMI NIVAS,

POST:SALIKERI BHAMAVAR,

TQ AND DIST:UDUPI

5.

THE DIVISIONAL MANAGER

UNITED INDIA INSURNCE CO. LTD.,

DIVISIONAL OFFICE, HUBLI,

DIST:DHARWAD

…RESPONDENTS

(BY SRI. NAGARAJ K. APPANNAVAR, ADV., FOR

SRI. LAXMAN T MANTAGANI, ADV., FOR R1;

R2 & R3 ARE MINORS AND REPRESENTED BY R1;

SRI. S. K. KAYAKMATH, ADV., FOR R4;

SRI. N. R. KUPPELUR, ADV., FOR R5)

THIS MFA IS FILED UNDER SECTION 30(1) OF W.C. ACT,

1923 AGAINST THE JUDGMENT & ORDER DATED 30.11.2009

PASSED IN WCA. F. NO.91/2008 PASSED BY THE COMMISSIONER

AND LABOUR OFFICER FOR WORKMEN’S COMPENSATION, SUB-

DIVISION

–II,

HUBLI,

AWARDING

A

COMPENSATION

OF

RS.1,00,000/- WITH INTEREST @ 12% PER ANNUM FROM THE

DATE OF PETITION TILL THE DATE OF REALISATION.

IN M.F.A.NO.21326 OF 2010

BETWEEN:

UNITED INDIA INSURANCE CO.LTD.,

HUBLI D.O,

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MFA No. 21040 of 2010

C/W MFA No. 21326 of 2010

THROUGH ITS DIVISIONAL OFFICE,

LEA COMPLEX, DHARWAD,

REPRESENTED BY ITS

DIVISIONAL MANAGER

SRI.S.K.CHOUDHURY

…APPELLANT

(BY SRI. N. R. KUPPELUR, ADV.,)

AND:

1.

SMT BASAVVA

AGED ABOUT 42 YEARS,

W/O THIPPANNA HUBLI @ SANNA HUBLI

R/O KADASIDDESHWAR ONI,

SAVADATTI, DIST:BELGAUM

2.

KUM.CHANNAMMA

AGED ABOUT 16 YEARS,

D/O THIPANNA HUBLI @ SANNA HUBLI

MINOR REPRESENTED BY RESPONDENT NO.1

R/O KADASIDDESHWAR ONI,

SAVADATTI, DIST:BELGAUM

3.

MASTER EARANNA,

AGED ABOUT 10 YEARS,

MINOR REPRESENTED BY RESPONDENT NO.1

R/O KADASIDDESHWAR ONI,

SAVADATTI, DIST:BELGAUM

4.

SRI. ASHOKA SETTY,

MAJOR

S/O ANANDA SETTY,

R/AT LAXMI NIVAS SALIKERI,

BRAMHAVAR, UDUPI TQ AND DISTRICT

(OWNER OF BUS NO.KA-20/A-3859)

5.

THE DIVISIONAL MANAGER

NWKRTC, DIVISIONAL OFFICE SIRSI,

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MFA No. 21040 of 2010

C/W MFA No. 21326 of 2010

KARWAR DISTRICT.

…RESPONDENTS

(BY SRI. NAGARAJ K. APPANNAVAR, ADV., FOR

SRI. LAXMAN T MANTAGANI, ADV., FOR R1;

R2 & R3 ARE MINORS AND REPRESENTED BY R1;

SRI. S. K. KAYAKMATH, ADV., FOR R4;

SRI. SHIVAKUMAR S. BADAWADAGI, ADV., FOR R5)

THIS MFA IS FILED U/S 30(1) OF THE WORKMEN'S

COMPENSATION ACT, AGAINST THE JUDGMENT AND ORDER

DATED:30-11-2009 PASSED IN WCA/F-91/2008 ON THE FILE OF

THE LABOUR OFFICER AND COMMISSIONER FOR WORKMEN'S

COMPENSATION,

SUB-DIVISION-II,

HUBLI,

AWARDING

COMPENSATION OF RS.3,32,580/-ALONG WITH INTEREST AT THE

RATE OF 12% P.A.FROM THE DATE OF PETITION TILL DEPOSIT.

THESE APPEALS COMING ON FOR FINAL HEARING THIS DAY

COURT DELIVERED THE FOLLOWING:

These two appeals are at the instance of the

NWKRTC, which is the hirer of the bus in question in which

the deceased was working as a driver and also by the

insurer of the bus calling in question the judgment and

order dated 30.11.2009 passed in WCA/F-91/2008 by the

learned

Labour

Officer

and

the

Commissioner

for

Workmen’s Compensation, Sub-Division II, Hubli (for short

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“the

Commissioner”).

By

the

said

award,

learned

Commissioner has awarded a sum of Rs.3,32,580/- with

interest thereon @ 12% per annum w.e.f. 30 days from

the date of the award. Learned Commissioner has further

levied a penalty of Rs.1,00,000/- payable jointly and

severally against the owner of the bus and NWKRTC,

which is the hirer of the bus.

The foundational facts based on which the claim

petition has been filed is not much in dispute except that,

the insurer questions the finding that the accident

resulting in the death of the employee was arising out of

and in the course of employment.

Learned counsel for the appellant-NWKRTC

places

reliance

on

Section

4A

of

the

Employees’

Compensation Act, 1923 (for short “the Act”) and submits

that the appellant being the hirer of the vehicle, is not

liable to pay the penalty and under the provisions of the

Act, the penalty is liable to be paid only by the employer-

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owner of the vehicle. It is therefore, contended on behalf

of NWKRTC that said part of the award is liable to be set

aside insofar as the appellant-NWKRTC is concerned and

appeal to the said extent is required to be allowed.

Learned counsel for the insurer advances two

fold contentions. Firstly, it is contended by him that the

death of the deceased-workman did not take place in an

employment related accident arising out of and in the

course of employment and he died due to natural causes

namely heart-attack. His second contention is that in

terms of Section 4A of the Act, the Insurance Company is

not liable to pay the penalty.

Learned counsel appearing for the claimants,

per contra, submits that the learned Commissioner upon

detailed consideration of the evidence has recorded a

finding that the deceased-workman had died due to an

employment related accident arising out of and in the

course of employment and such finding being based on

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evidence is not liable to be interfered with. He also

submits that the finding of the learned Commissioner that

NWKRTC as well as the Insurance Company are jointly and

severally liable to pay not only the compensation proper

but also the penalty imposed is not liable to be interfered

with and there is no merit in the appeals and they are

liable to be dismissed.

6.

The

records

clearly

show

that

deceased-

workman was working as a driver in the bus belonging to

the appellant-Ashok Shetty and while he was performing

his duties, he suffered breathlessness and thereafter he

was taken to hospital and he died due to heart-attack on

the same day. This shows that the deceased-workman was

performing his duty as a driver of a heavy vehicle like bus

and

because

of

work

related

stress,

he

suffered

breathlessness to which he succumbed in the hospital and

the doctors have recorded a diagnosis that it was a heart-

attack. In the circumstances, it cannot be said that there

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is no causal connection between the nature of work of the

deceased and the heart-attack he had suffered due to

which he died. Learned Commissioner having recorded

such a finding I do not find any good ground to interfere

with the same and accordingly the submissions of the

learned counsel for the Insurance Company in this behalf

is rejected.

7.

The only other contention which survives for

consideration is whether the Insurance Company and

NWKRTC are liable to pay the penalty portion of the award

made by the learned Commissioner for non-payment of

the compensation when it fell due in terms of the Act. For

the said purposes, it is necessary to make reference to

Section 4A of the Act, which reads as follows:

“4A. 1 Compensation to be paid when due an

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