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2023 Supreme(Online)(Mad) 75955

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Hon`ble Mr Justice SUNDER MOHAN
United India Insurance Compa – Appellant
Versus
Vidyavathi – Respondent



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IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 14.07.2023 CORAM THE HONOURABLE MR. JUSTICE SUNDER MOHAN C.M.A.No.630 of 2023 and C.M.P.No.5227 of 2023 United India Insurance Company Ltd., No.44, GST Road, Guindy, Chennai – 600 032. .. Appellant Vs.

1.Vidyavathi

2.JSR Infra Developers Pvt. Ltd., JSR Towers, 4th Floor, 17/8, Vijayaragava Road, T.Nagar, Chennai – 600 017. .. Respondents Prayer : Civil Miscellaneous Appeal filed under Section 30 of the Employees' Compensation Act, 1923, against the order dated 10.08.2022 made in B1.Case NO.2755 of 2021, on the file of the Commissioner of Employees' Compensation (Joint Commissioner of Labour – 2), Chennai –6.

For Appellant : Mr.S.Dhakshnamoorthy For Respondents For R1 : Mr.N.Mugilvannan Nambi For R2 : No appearance

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J U D G M E N T

The above appeal has been filed challenging the order of the Commissioner for Employees' Compensation (Joint Commissioner of Labour-2), Chennai, made in B1.Case.No.2755 of 2021dated 10.08.2022.

2. Though notice has been served on the 2nd respondent, none has entered appearance for the 2nd respondent.

3. The appeal arises under the following circumstances:

(a) An employee of the 2nd respondent herein while returning from his office and on the way home, after performing his office duties, met with an accident; that the employer thereafter gave a notice of the accident to the Joint Commissioner of Labour – 2. On the basis of the said notice, the Joint Commissioner of Labour – 2 sent notice of hearing to the appellant herein stating that the employer was insured with the appellant Insurance Company. The employer also stated and let in evidence to show that the deceased employee was performing his duties as an employee at the time of accident. The appellant resisted the stand taken by the employer and stated that the employee died only while returning home and it cannot be stated that the employee died in the course of employment and in such circumstances, the appellant is not liable to pay compensation under the insurance contract entered into between the employer and the appellant.

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(b) The Joint Commissioner of Labour – 2, after considering the oral and documentary evidence held that the employee died in the course of employment and further held that the appellant was liable to pay compensation to the tune of Rs.10,75,100/- (Rupees Ten Lakh Seventy Five Thousand and Hundred only) together with interest at the rate of 12% from the date when it became due till the date of payment. Aggrieved by the said award passed by the Joint Commissioner of Labour – 2, the appellant has preferred the above appeal.

4. The learned counsel for the appellant submitted that the claimant, who is the wife/legal heir of the deceased and the employer had not established that the employee/deceased died during the course of employment. The deceased died in a road accident and hence, it is not in the course of employment. The learned counsel for the appellant further submitted that in any event, the liability of the Insurance Company arises out of insurance contract entered into between the Insurance Company and the employer, which states that the Insurance Company is not liable to pay interest or penalty on the award amount, as per the terms of the policy. The learned counsel for the appellant pointed out to Ex.A2, the Insurance policy document in support of his submission.

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5.(a). The learned counsel for the 1st respondent claimant submitted that the employer had given notice of the accident on 31.03.2021 within the time stipulated under the Act. The employer had stated in the said notice that the deceased was working as a Store Incharge and it was a part of his duty to travel in that road to verify all the places where the stock belonging to the employer were stored and that the accident took place when the employee/deceased had inspected the stock in one place and was moving to the next place for inspection. This aspect has not been refuted by the Insurance Company by any legally accep

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