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2026 Supreme(Online)(Kar) 22475

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
Ravi V. Hosmani, J
THE DIVISIONAL MANAGER – Appellant
Versus
SHRI. HASANSAB S/O. MADARSAB MULGUND – Respondent
MFA No. 20536 of 2013



Advocates:
For the Appellants/Petitioners: MK Soudagar
For the Respondents: SS Bawakhan

The insurer is not liable to pay compensation under the Employees' Compensation Act if the driver's license had expired on the date of the accident, as the employer has a continuing duty to ensure the license remains valid throughout the employment.

Headnote:(A) Insurance Law - Liability of Insurer - Validity of Driving License - Where the driving license of the workman had expired prior to the date of the accident and was renewed only after the accident, the insurer cannot be held liable for compensation. (Para 11, 12)

(B) Employer's Duty - Verification of License - The owner/employer has a continued duty to ensure that the driving license of the employee is renewed from time to time during the course of employment; failure to perform this duty absolves the insurer from liability. (Para 11)

Issues: Whether the insurer is liable to pay compensation when the driver was operating the vehicle with an expired driving license on the date of the accident.

Table of Content
1. summary of the accident, the initial claim for compensation, and the commissioner's award holding the insurer liable. (Para 1 , 2 , 3 , 4 , 5)
2. arguments regarding the insurer's liability in the context of an expired driving license and conflicting precedents. (Para 6 , 7 , 8)
3. the court's determination that the employer's failure to ensure the currency of the driver's license absolves the insurer of liability. (Para 9 , 10 , 11 , 12)
4. final order allowing the appeal, modifying the award, and shifting liability to the owner/employer. (Para 13 , 14)

MISCELLANEOUS FIRST APPEAL NO. 20536 OF 2013 (WC)

THIS MFA IS FILED UNDER SECTION 30(1)(A) OF WC ACT, 1923, PRAYING TO CALL FOR RECORDS IN CASE W.C.NO.115/2007, ON THE FILE OF THE COMMISSIONER FOR WORKMEN’S COMPENSATION DIV II HUBLI AND SET ASIDE THE JUDGMENT AND ORDER DATED 17.11.2012 BY ALLOWING THIS APPEAL WITH COST & ETC.

THIS MFA COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: THE HON'BLE MR. JUSTICE RAVI V.HOSMANI

ORAL JUDGMENT

1. Challenging judgment and award dated 17.11.2012 passed by Commissioner for Workmen’s Compensation Div II Hubballi (‘Commissioner’ for short), in WC no.115/2007, this appeal is filed.

2. Sri MK Soudagar, learned counsel for appellant submitted, appeal was by insurer challenging finding of Commissioner on liability of insurer. It was submitted that as per respondent no.1-workman, he was employed as driver of Lorry no.KA-24/B-1896 belonging to respondent no.2 on wages of Rs.10,000/- per month in addition Rs.50/- per day as bhata. It was submitted as per instruction of employer when he was driving vehicle on 21.11.2006 from Sandoor to Yallapur on Arbail Ghat, along with load of iron/manganese ore, lorry dashed against another parked lorry. In accident, driver/workman sustained fracture of right tibia and fibula and despite treatment he did not recover fully and sustained permanent physical disability leading to loss of earning capacity. Therefore, he filed application under provisions of Employees' Compensation Act, 1923, for compensation against employer and insurer.

3. On appearance, claim petition was opposed on all grounds based on which Commissioner framed following issues:

“1. CfðzÁgÀ£ÀÄ, ¥ÀæwªÁ¢-1 EªÀgÀ §½ CªÀgÀ ªÁºÀ£ÀzÀ°è qÉÊæªÀgÀ ¸ÉêÉAiÀİèzÁÝUÀ PÀ®¸ÀzÀ ªÉ¼É PÉ®¸ÀzÀ ¥ÀjuÁªÀÄ¢AzÀ C¥ÀWÁvÀÄAmÁV ±Á±ÀévÀ CAUÀ£ÀÆå£ÀvÉ ¥ÀqÉ¢zÁÝ£ÉAzÀÄ ¸Á©ÃvÀÄ¥Àr¹zÁÝ£ÉAiÉÄÃ?

2. CfðzÁgÀ¤UÉ C¥ÀWÁvÀ PÁ®PÉÌ 31 ªÀµÀð ªÀAiÀĸÀÄì ªÄÀvÀÄÛ ¥ÀæwªÁ¢-1 EªÀgÀÄ gÀÆ.10000-00 ªÀiÁ¹PÀ ªÉÃvÀ£À ªÀÄvÀÄÛ gÀÆ.50-00 ¢£À¨sÀvÉå ¥ÁªÀw¸ÀÄwÛzÀÝgÀÄ JAzÀÄ ¸Á©ÃvÀÄ¥Àr¹zÁÝ£ÉAiÉÄÃ?

3. CfðzÁgÀ£ÀÄ ¥ÀjºÁgÀ ¥ÀqÉAiÀÄ®Ä CºÀð£ÉAiÉÄÃ? ºÁVzÝÀgÉ ¥ÀjºÁgÀ ªÉÆvÉÛµÀÄÖ ¥ÁªÀw¸À®Ä ¨sÁzsÀå¸ÀÜgÁgÀÄ?

4. CfðzÁgÀ£ÀÄ ¥ÀjºÁgÀ ªÉÆvÀÛzÀ ªÉÄÃ¯É zÀAqÀ ªÀÄvÀÄÛ §rØ ºÀt ¥ÀqÉAiÀÄ®Ä CºÀð£ÉAiÉÄÃ? zÀAqÀzÀ ªÀÄvÀÄÛ §rØ zÀgÀ JµÀÄÖ? ¥ÁªÀw¸À®Ä ¨sÁzsÀå¸ÀÛgÁgÀÄ?

5. DzÉñÀ K£ÀÄ?”

4. Workman along with Dr.MC Bellad deposed as PWs1 and 2 and got marked documents at Exs.P1 to P8. On other hand, official of insurer and RTO were examined as RWs1 and 2 and Exs.R1 to R3 were got marked.

5. On consideration, Commissioner held relationship of employer and employee was established. Occurrence of accident in course of employment and out of employment was established and claimant was entitled for compensation of Rs.1,74,703/- with simple interest at 12% per annum and holding insurer liable to pay same. Aggrieved, insurer was in appeal.

6. It was submitted, Hon'ble Supreme Court in case of Beli Ram v. Rajinder Kumar and Anr. , (2020) 11 S.C.R. 31, held that it was responsibility of owner of vehicle/employer to verify validity of driving license of driver employed by him. Since workman in question was driving a heavy goods vehicle, whose driving licence was valid upto 28.02.2005 and expired as on date of accident was renewed much later i.e., from 23.04.2009. Therefore, it could not be said that accident had occurred out of employment.

7. It was submi

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