The Workmen's Compensation Act confers an absolute liability on employers to compensate injured workmen, allowing for indemnification from third parties responsible for injuries.

1 The Kerala State Electricity Board (the "Board") is the appellant. It challenges the order of the Commissioner for Workmen's Compensation (the "Commissioner") in W. C. C. No. 19 of 1980 holding that the first respondent, the employer, was liable to pay the workman (the second respondent in this appeal) a sum of Rs. 18,816/- as compensation under S.4(c) read with S.3 and Part.2 of Schedule.1 and Schedule.4 of the Workmen's. Compensation Act, 1923 (the "Act") and that the employer was to that extent entitled to be indemnified by the Board. This order is challenged only in so far as the Board has been held liable to indemnify the employer.

2 Appearing for the Board, Shri. K. P. G. Menon challenges the jurisdiction of the Commissioner. He contends that the alleged right of the employer to be indemnified by a stranger like the Board is a matter for determination by a civil court, and not by recourse to the summary procedure under S.12(2) of the Act. He, however, submits that the finding of the Commissioner that the injury was caused to the employee by an accident arising out of and in the course of his employment and that the employer was liable to compensate him in the sum determined by the Commissioner is not questioned.

3 The accident occurred on 10-9-1979 at about 9 A. M, when the workman in the course of his employment went on an errand on behalf of his employer. As he came cut of the Estate he stepped on a live stay wire attached to an electric post belonging to the Board, as a result of which his left hand was gravely burned and it had to be amputated just below the shoulder leaving a stump of less than 8 inches. This was when the workman was 23 years of age and earning monthly wages at Rs. 184-60.

4 S.3 of the Act says that an employer is liable to pay compensation when personal injury is caused to a workman by an accident arising out of and in the course of his employment. Subject to certain exceptions, the liability cast under S.3 is absolute and it is unnecessary to prove negligence on the part of the employer. S.12 makes the employer liable to pay compensation not only to his own workmen, but also to those employed in the execution of his work by his contractor. This liability is, however, subject to his right to be indemnified by his contractor, who in turn is entitled to be indemnified by the sub contractor in case the latter is the immediate employer. S.13 recognises the right of the principal employer who has paid compensation to the workman, and of the contractor who has been called on to indemnify the principal employer, in terms of S.12, to be indemnified by any other person who is legally liable in damages in respect of the injury caused.

5 S.12 provides:
"12. Contracting (1) Where any person (hereinafter in this section referred to as the principal) in the course of or for the purposes of his trade or business contracts with any other person (hereinafter in this section referred to as the contractor) for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal, the principal shall be liable to pay to any workman employed in the execution of the work any compensation which he would have been liable to pay if that workman had been immediately employed by him; and where compensation is claimed from the principal, this Act shall apply as if references to the principal were substituted for references to the employer except that the amount of compensation shall be calculated with reference to the wages of the workman under the employer by whom he is immediately employed.
(2) Where the principal is liable to pay compensation under this section he shall be indemnified by the contractor, (or any other person from whom the workman could have recovered compensation and where a contractor who is himself a principal is liable to pay compensation or to indemnify a principal under this section he shall be entitled to be indemnified by any pe