IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Appeal From Order No.358 of 2023

25th September, 2025 National Insurance Company Limited ……..Appellant Versus Champa Devi and others ……… Respondents ----------------------------------------------------------------------

Presence:-

Mr. Deepak Rawat, learned counsel for the appellant.

Mr. G.D. Joshi, learned counsel for respondent nos.1 to

3/claimants.

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Hon'ble Alok Mahra, J.

Present appeal, under Section 30 of the Employees’ Compensation Act, 1923 (hereinafter referred to as “the Act”), has been filed by the appellant/Insurance Company challenging the judgment and award dated 05.07.2023 passed by the learned Employees’ Compensation Commissioner/Chief Judicial Magistrate, Bageshwar in E.C.A. Case No. 2 of 2021 “Champa Devi Vs. Gajendra Pal and Others”. By the impugned award, compensation of Rs. 16,01,775/- along with interest @ 12% per annum from the date of filing of the petition till actual payment has been awarded in favour of the respondent nos. 1 to 3/claimants against the appellant/Insurance Company.

2. The case of the claimants before the learned Commissioner was that deceased Bhajan Singh, son of Shri Ram Singh, aged 27 years, was employed as a driver with respondent no.4, the owner of vehicle No. UK-06G- 7781 (Alto Car). He was drawing a wage of Rs.15,000/- per month apart from food and other allowances. On 30.05.2018, the husband of appellant no. 1, namely, late Bhajan Singh, son of Shri Ram Singh, resident of Village Sorag, Post Sorag, Police Station & Tehsil Kapkot, District Bageshwar, was returning to his native village Sorag from Haldwani via the District Headquarters, Bageshwar, in vehicle no. UK-06G-7781 (Alto Car) belonging to the respondent no.4. When, the said vehicle reached near Dhur Band, Sorag, within the jurisdiction of Police Station Kapkot, District Bageshwar, a wild animal suddenly crossed the road at a sharp curve, and while attempting to save the animal, the vehicle lost balance and fell into a gorge about 100 meters deep, resulting in the instantaneous death of the husband of appellant no. 1. Thereafter, the aforesaid incident was duly reported on 30.05.2018 at Police Station Kapkot, District Bageshwar.

3. Learned counsel for the appellant/insurance company has submitted that the learned Commissioner failed to appreciate that the employer–employee relationship was not established at the time of the incident; that the deceased himself was the owner of the vehicle, as he had purchased it; that, the learned Commissioner further erred in assessing the income of the deceased at Rs.15,000/- per month.

4. Learned counsel for the respondents/claimants has submitted that the award passed by the learned Employees’ Compensation Commissioner is just and proper and, therefore, does not warrant any interference in the instant appeal.

5. On the basis of the pleadings, the present appeal is admitted on the following substantial question of law:-

i. Whether the learned Commissioner has erred in law in assessing the wages of the deceased at Rs.15,000/- per month, whereas, in any case, the wages could not have exceeded Rs.8,000/- per month, inasmuch as the accident had occurred on 30.05.2018 and, on the said date, the maximum wage of an employee for the purpose of computing compensation under the Employees’ Compensation Act was restricted to Rs.8,000/- and not Rs.15,000/-

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6. It is an admitted position between the parties that, in terms of Notification No. S.O. 1258(E) dated 31.05.2010 issued by the Central Government, the monthly wages of a workman were fixed at Rs.8,000/- in accordance with Section 4(1)(b) of the Employees’

Compensation Act, 1923.

7. Learned counsel for the appellant has further submitted that the relevant date for computing compensation is the date of the incident, and admittedly, on the said date, the wages of a workman stood fixed at Rs.8,000/- per month. However, the learned Commissioner, while c