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Acts
  • provisions of S. 61 of the Employees State Insurance Act (hereinafter referred to as the Act).
  • provisions of S. 61 of the Employees State Insurance Act.2.
  • Workmen's Compensation Act, 1923 (8 of 1923)
  • MOTOR VEHICLES ACT
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of S. 61 of the Employees State Insurance Act (hereinafter referred to as the Act).
  • provisions of S. 61 of the Employees State Insurance Act.2.
  • Workmen's Compensation Act, 1923 (8 of 1923)
  • MOTOR VEHICLES ACT
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The appeal was filed by the claimants against a judgment and award dated 21-3-1980 of the Claims Tribunal, Dharwar (Misc. MVC No. 13 of 1979), which dismissed the claim petition. The Tribunal dismissed the petition on the ground that it was barred by provisions of Section 61 of the Employees' State Insurance Act (as stated in the Tribunal's order and in the respondents' pleadings).

The factual matrix is that one Sri Veerabhadraiah died from injuries sustained when a bus owned by the Karnataka State Road Transport Corporation (KSRTC) was negligently driven inside the KSRTC depot at Hubli on 15 July 1978. The deceased was present on the depot premises in the course of his employment when the accident occurred. His legal heirs — his widow and children — claimed Rs. 1,00,000 in compensation from: (i) the General Manager, KSRTC (Respondent No.1), (ii) the driver (Respondent No.2), and (iii) the Self Insurance Fund of KSRTC (Respondent No.3).

The respondents resisted the claim on the ground that the claimants were barred from seeking compensation before the Motor Accidents Claims Tribunal by provisions of the Employees' State Insurance Act. That question formed Issue No. 4 before the Tribunal. The Tribunal upheld the respondents' contention and rejected the claim. The claimants appealed to this Court.

Legal Issues Presented

  1. Whether Section 53 of the Employees' State Insurance Act is a bar to the claim for compensation on the facts of this case (i.e., where the deceased employee died as a result of an employment injury sustained in the course of his employment).

Arguments of the Parties

Appellants' Arguments

  • The appellants contended that Section 61 of the ESI Act (as relied upon in the Tribunal) does not bar a claim before the Motor Accidents Claims Tribunal and that a claim arising out of tort remains maintainable before the Tribunal.
  • They relied on Hindustan Aeronautics v. P. Venu (1972 Accidents Claims Journal Page-266), which they said held that a claimant was not debarred from filing an application under the Motor Vehicles Act before the Tribunal where the claim arises out of torts.
  • The appellants' counsel further argued that Section 53 of the ESI Act (which bars recovery of compensation or damages under any other law) applies only to "personal injury" and therefore would not cover a case of death; they relied on the definition of "employment injury" in Section 2(8) of the Act in support of this contention.

Respondents' Arguments

  • The respondents relied on a decision of this Court in Deputy General Manager, K.S.R.T.C v. Gopal Mudaliar (1982 (2) Kar. L.J. 535), which, they urged, specifically held that Section 53 of the ESI Act is a bar to claims for compensation when the cause of action arose as a result of an employment injury.
  • They argued that Section 53 refers to "an insured person or his dependants", which by necessary implication includes cases of death (because dependants claim only when death has occurred), and therefore the bar extends to dependants' claims arising from death due to employment injury.
  • The respondents pointed to Section 52 of the ESI Act (Dependants benefit), which expressly contemplates dependants' benefits where an insured person dies as a result of an employment injury, and submitted that this statutory scheme demonstrates that dependants' remedies are to be pursued under the ESI Act and not under other laws.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hindustan Aeronautics v. P. Venu (1972, Accidents Claims Journal, p.266) Held that a claimant was not debarred from filing an application under the Motor Vehicles Act before the Tribunal where the claim arises out of torts (argument that ESI provisions do not bar tort claims). The appellants relied on this decision to argue that the Motor Accidents Claims Tribunal remains available. The Court recorded the reliance but did not adopt this precedent as determinative on the facts before it in light of other statutory provisions and authorities.
Deputy General Manager, K.S.R.T.C v. Gopal Mudaliar (1982 (2) Kar. L.J. 535) Held that Section 53 of the ESI Act is a bar to claims for compensation if the cause of action arose as a result of an employment injury. The respondents relied on this decision. The Court treated it as authority supporting the proposition that remedies for employment injuries (including resulting death) lie under the ESI scheme and that other remedies are barred.
Vasantha K.S v. K.S.R.T.C Interpreted Sections 2(8) and 51(c) of the ESI Act to treat the injuries and death as employment injury and held that the remedy open was to approach the ESI Corporation; other remedies (including remedies under Motor Vehicles Act or tort) were barred by Section 53. The Court relied on this authority and explicitly applied its reasoning: reading the ESI Act provisions together, the injuries and death were employment injury and the exclusive remedy lay under the ESI Act; consequently the Tribunal's decision to reject the claim was upheld.

Court's Reasoning and Analysis

The Court proceeded by identifying the undisputed facts: the deceased was an employee, sustained fatal injuries in the course of employment on KSRTC premises, and the injuries qualified as an "employment injury" under the Act. The central analytical question was whether Section 53 of the Employees' State Insurance Act barred the dependants' claim for compensation before the Motor Accidents Claims Tribunal.

The Court examined the text of Section 53 which provides a bar against receiving or recovering compensation or damages under any other law in respect of an employment injury sustained by an insured person. It also examined the definition of "employment injury" in Section 2(8) and the dependants' benefit provision in Section 52 (which makes dependants' benefits payable if an insured person dies as a result of an employment injury).

Addressing the parties' competing submissions, the Court noted the appellants' contention that Section 53 applies only to personal injury and not to death. The Court contrasted that submission with the respondents' point that Section 53 expressly refers to "an insured person or his dependants," which indicates that the bar extends to dependants' claims on death caused by employment injury.

The Court reasoned that Section 52 contemplates dependants' benefits only when death results from an employment injury; read together, Sections 2(8), 52 and 53 indicate a statutory scheme in which injuries and death that arise out of and in the course of employment are to be addressed through the ESI mechanism. The Court relied on prior decisions (notably Vasantha K.S v. K.S.R.T.C) which interpreted the ESI provisions to mean the appropriate remedy is to approach the ESI Corporation and that other remedies, including those under the Motor Vehicles Act or common law tort, are barred by Section 53.

Applying that reasoning to the facts before it, the Court concluded that the claimants' remedy was under the ESI Act and that the claim before the Tribunal was barred by Section 53; accordingly, the Tribunal's dismissal of the claim was correct and had to be upheld.

Holding and Implications

Holding: The appeal is dismissed. The Court upheld the Tribunal's decision rejecting the claim on the basis that the statutory provisions of the Employees' State Insurance Act (as interpreted and applied) bar the claimants from pursuing compensation under any other law for the employment injury that resulted in death. The appeal was declared devoid of merits and dismissed; no costs were awarded.

Implications:

  • The direct effect is that the claimants are precluded from recovering compensation before the Motor Accidents Claims Tribunal in respect of the death that arose out of employment; their remedy is to be pursued under the Employees' State Insurance machinery (dependants' benefit under the ESI Act).
  • The opinion applied and followed existing judicial authorities (as cited) to interpret Sections 2(8), 52 and 53 of the ESI Act to make the ESI remedy exclusive for employment injuries (including resulting death). The Court did not purport to lay down a novel principle beyond the authorities it followed; it upheld the prior line of decisions and the Tribunal's order accordingly.

No other information was introduced beyond the material contained in the provided opinion.

    Annapurna & Ors. v. General Manager K.S.R.T.C & Ors.

    1. This appeal by the claimants is directed against the judgment and award dt. 21-3-1980, made by the claims Tribunal, Dharwar in Misc. MVC No. 13 of 1979, on its file, dismissing the claim petition on the ground that it is barred by the provisions of S. 61 of the Employees State Insurance Act.

    2. One Sri Veerabhadraiah died as a result of the injuries sustained by him when a bus belonging to the Karnataka State Road Transport Corporation was driven carelessly by the driver thereof, inside the depot of the said Corporation, Hubli, on 15th day of July 1978. The deceased was present there in the course of his employment and the accident happened in the premises of the depot. His legal heirs viz., his widow and children claimed compensation of Rs. 1,00,000 from the respondents: Respondent No. 1 is the General Manager, KSRTC. Respondent No. 2 is the driver and Respondent No. 3 is the Self Insurance Fund of the KSRTC. The respondents resisted the claim on the ground that such claim for compensation is not available to the claimants in view of the provisions of S. 61 of the Employees State Insurance Act (hereinafter referred to as the Act). That became the subject matter of issue No. 4 before the Tribunal. The Tribunal upheld the contention and rejected the claim. Aggrieved by the said judgment, the claimants have come up in appeal before this Court. The learned counsel appearing for the claimants appellants strenuously urged before us that S. 61 of the Act is no bar to the claim made before the Motor Accidents Claims Tribunal. He relied on the decision of this Court in Hindustan Aeronautics v. P. Venu (1972 Accidents Claims Journal, Page-266), wherein it is held that the claimant was not debarred from filing an application under the Motor Vehicles Act, before the Tribunal, in view of the provisions of S. 61 of the Act, as the claim arises out of torts. The learned Counsel appearing for the other side, however, invited our attention to a decision of this Court reported in (1982 (2) Kar. L.J 535) Deputy General Manager, K.S.R.T.C v. Gopal Mudaliar wherein this Court has specifically held that S. 53 of the Act is a bar to claim compensation if the cause of action arose as a result of employment injury.

    3. The sole point, therefore, that arises for our consideration in this case is; whether S. 53 of the Act is a bar to claim compensation on the facts of this case.

    4. It is not in dispute that the deceased was an employee and he was injured. It is further not in dispute that the deceased sustained injuries in the course of his employment and the injury could be termed as employment injury. The next question is whether the provisions of S. 53 of the Act are attracted when the dependants of the deceased claimed compensation. S. 53 of the Act reads:

    “Bar against receiving or recovery of compensation or damages under any other law: An insured person or his dependants shall not be entitled to receive or recover, whether from the employer or the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 (8 of 1923) or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act”.

    5. The learned counsel for the appellants invited our attention to the fact that an insured person would not be entitled to receive or recover compensation in respect of employment injury. He invited our attention to the definition of the term ‘Employment injury in S. 2(8) of the Act, which states:

    “Employment injury means a personal injury to an employee caused by accident or an occupational discease arising out of and in the course of his employment, being an insurable employment, whether the accident occurs or the occupational discease is contracted within or outside the territorial limits of India”.

    6. Thus he stated that S. 53 of the Act applies only to personal injuries caused in the course of the employment and that it would not cover the case of death. But, the learned counsel for the other side invited our attention to the fact that S. 53 of the Act speaks of an insured person or his dependants which by necessary implications means that the section covers even a case of death due to employment injury because it is only then that the dependants can claim compensation.

    7. The learned counsel for the other side also invited our attention to S. 52 of the Act which states:

    “52. Dependants benefit:—(1) If an insured person dies as a result of an employment injury sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for temporary disablement in respect of the injury) dependants benefit shall be payable in accordance with the provisions of the First Schedule to his dependants specified in sub-clause (i) and sub-clause (ii) clause of (6-A) of S. 2”.

    8. Hence, benefits to the dependants are contemplated only when the person dies as a result of employment injury. Therefore, by necessary implication, it is clear that S. 53 of the Act comes in when a person claims damages on account of employment injury or when his dependants claim benefits as a result of death of an employee as a result of employment injury. That is the view taken by this Court in Vasantha K.S v. K.S.R.T.C wherein it is ruled that reading of S. 2(8) along with S. 51(c) of the Act, the injuries sustained and the death of the two persons was nothing but employment injury and that the remedy open to the injured and the LRs. of the deceased was to approach the ESI Corporation constituted under the ESI Act and not the Tribunal constituted under the Motor Vehicle Act or under any other law for the time being in force including common law right under the Law of Torts. It is further held that the other remedies are barred under S. 53 of the ESI Act. That being so, it is obvious that the final decision of the Tribunal has to be upheld.

    9. In the result, we are constrained to hold that the appeal is devoid of merits and is liable to be dismissed.

    10. We dismiss the same. No costs of this appeal.

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    Annapurna & Ors. v. General Manager K.S.R.T.C & Ors.
    (Dec 13, 1983)