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citation codes
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  • section 30 of the Workmen's Compensation Act, 1923
  • section 98(1) of the Motor Vehicles Act, 1939.
  • section 96(3) of the Motor Vehicles Act.
  • Motor Vehicles Act, section 110-C(2-A)
  • MOTOR VEHICLES ACT
  • section 110-C(2-A)
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • section 30 of the Workmen's Compensation Act, 1923
  • section 98(1) of the Motor Vehicles Act, 1939.
  • section 96(3) of the Motor Vehicles Act.
  • Motor Vehicles Act, section 110-C(2-A)
  • MOTOR VEHICLES ACT
  • section 110-C(2-A)
Smart Summary

Judgment Summary — S.C. Mohapatra, J.

Factual and Procedural Background

The appellant insurer challenged an award made by the Commissioner under the Workmen's Compensation Act, 1923 ("the Act"). The deceased was a dumper driver insured with the appellant and died on 16-4-1986 when another dumper caused a fatal accident while the deceased had gone to make an entry in the trip note book. The deceased's father (respondent No. 1) filed a claim before the Commissioner, alleging the deceased's age to be 27 years and monthly salary Rs. 1,400/-.

The employer filed a written statement admitting the occurrence and employment, stating monthly wages were Rs. 580/- plus house rent of Rs. 40/-, and admitting that the insurer was liable to pay compensation. The insurer appeared later, denied liability and the wage claim, and alleged collusion between the employer and the claimant.

The Commissioner, on the evidence before him (including the claimant-father's testimony and a school transfer certificate indicating date of birth 7-4-1959), found that the deceased was aged 27, died in the course of employment, and had monthly wages of about Rs. 1,000/-. The Commissioner awarded Rs. 83,428/-, directing the insurer to indemnify the same.

The insurer deposited the awarded amount with a letter expressing intention to appeal and filed an appeal under section 30 of the Act. The insurer also sought to admit an additional document (a school headmaster's certificate claiming no such person attended the school) as additional evidence in the appellate proceedings.

Legal Issues Presented

  1. Whether the insurer's appeal under section 30 of the Workmen's Compensation Act is maintainable when the insurer is directed to indemnify the award (including the effect of Motor Vehicles Act provisions and prior authorities on insurer liability).
  2. Whether there is a substantial question of law enabling interference by the appellate court with the Commissioner’s factual findings on the deceased's age and monthly wages.
  3. Whether the additional evidence (school headmaster's certificate) can be admitted at the appellate stage where it was not properly sought to be produced before the Commissioner (and whether refusal to admit such evidence would raise a substantial question of law or breach principles of natural justice).
  4. Whether the fatal injuries "arose out of" as well as "in the course of" employment — i.e., whether the accident fell within the statutory requirement for compensation under the Act.

Arguments of the Parties

Appellant (Insurer) — Mr. S.S. Basu

  • Challenged the Commissioner’s order on the ground that, although the death occurred in the course of employment, there was no explicit finding that the fatal injuries arose out of such employment.
  • Challenged the findings on the deceased's age and monthly wages as incorrect.
  • Sought to admit a headmaster's certificate as additional evidence to show that the transfer certificate relied upon for age was incorrect.
  • Pointed to the post-mortem report (Ext. C) indicating an age of about 35 years to support the contention that the Commissioner’s finding of age 27 was erroneous.
  • Argued the finding of monthly wages of Rs. 1,000/- was arbitrary and that the insurer could have examined the employer and other drivers to disprove that figure; also alleged collusion (as pleaded in insurer's written statement) between employer and claimant.

Respondent (Claimant / Dependant No. 1) — Mr. S.K. Dey

  • Submitted that age and wages are questions of fact that should not be re-opened in the appeal given the proviso limiting appeals to substantial questions of law under section 30 of the Act.
  • Maintained that the fatal injuries necessarily arose out of employment on the facts: the deceased was on the employer's premises and reporting in relation to the dumper trip when the accident occurred.
  • Argued that, because the employer had earlier filed a written statement admitting employment and liability, the insurer's scope of objection is limited (invoking principles analogous to section 96(3) of the Motor Vehicles Act), and that the Commissioner was justified in allowing inquiry into merits where the insurer alleged collusion.
  • Accepted that section 110-C(2-A) of the Motor Vehicles Act applies to a Tribunal and not to Workmen's Compensation proceedings directly, but argued the underlying principle (that insurers can challenge claims on merits in case of collusion) should apply.

Employer — Position in Written Statement

  • Admitted the occurrence and that the deceased was employed as a dumper driver.
  • Stated the monthly wages were Rs. 580/- and house rent Rs. 40/-.
  • Admitted liability and stated that the insurer was to pay compensation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bibhuti Bhusan Mukherjee v. Srimati Dinamoni Dei . 521981 C.L.T 235. Authority recognizing that an insurer can be directed to pay compensation under the Workmen's Compensation Act where a motor-vehicle accident is involved. The court relied on this authority (together with the other case cited and section 98(1) of the Motor Vehicles Act) to hold that the insurer could be made liable and therefore was an aggrieved party entitled to prefer an appeal under section 30 of the Act.
The Oriental Fire and General Insurance Co Ltd. v. Matias Burla . 601985 C.L.T 257. Same proposition: insurer may be directed to pay compensation under the Act in view of mandatory provisions in the Motor Vehicles Act when the accident is motor-vehicle related. Used, together with the other precedent and statutory language, to support the court's conclusion on maintainability of the insurer's appeal and on insurer liability to indemnify the award.

Court's Reasoning and Analysis

The court proceeded in a sequence of legal determinations that tracked the submissions and the statutory scheme:

  1. Maintainability of the Insurer's Appeal:

    Statutory and precedential basis

    The court observed that section 30 of the Workmen's Compensation Act provides for appeals but that the first proviso limits appeals to cases involving a substantial question of law. The court relied on earlier decisions (Bibhuti Bhusan Mukherjee and The Oriental Fire & General Insurance Co. Ltd. v. Matias Burla) and on section 98(1) of the Motor Vehicles Act, 1939 to conclude that an insurer directed to indemnify compensation in respect of a motor vehicle accident can be made liable under the Act and is therefore an aggrieved person entitled to prefer an appeal. Consequently, the insurer's appeal was held to be maintainable.

    The court also noted that the third proviso to section 30(1) requires deposit by the employer but does not require deposit by the insurer; regardless, this point was academic because the insurer had deposited the awarded amount.

  2. Requirement to Show a Substantial Question of Law:

    Even though the appeal was held maintainable, the court emphasized that the first proviso to section 30(1) applies: the insurer must satisfy the appellate court that a substantial question of law is involved. The court examined whether the issues the insurer raised amounted to substantial questions of law.

  3. Admissibility of Additional Evidence (headmaster's certificate):

    Procedural posture

    The insurer applied to admit a certificate purportedly issued by the school headmaster claiming that no such person attended the school (challenging the transfer certificate used to prove age). The court held that additional evidence produced after disposal of the claim proceedings could be admitted only if there had been an appropriate attempt before the Commissioner — for example, an application for adjournment to procure the evidence which was refused. No such request or refusal appeared on the record. Therefore, the court refused to admit the additional evidence. The court explained that if there had been a showing that the insurer was denied an opportunity to adduce such evidence before the Commissioner, the appellate court could entertain it and, if admitted, might reassess facts; but on the record before it no such procedural failure was proved.

  4. Age Determination:

    The court noted two items of evidence on age: the school transfer certificate (showing date of birth 7-4-1959) relied on by the claimant, and the opinion in the post-mortem report that the deceased was "about 35 years." The Commissioner, as the primary fact-finder, accepted the transfer certificate and found the deceased was 27. The appellate court declined to interfere because the dispute was factual and did not raise a substantial question of law. The court observed that if the insurer had called the medical officer or otherwise presented medical expertise to prove the older age, the insurer's contention might have had force; but the insurer did not do so.

  5. Monthly Wages Determination:

    The Commissioner, after weighing rival contentions (employer's written statement stating Rs. 580/-, claimant's testimony that the deceased gave Rs. 1,000/- to his mother monthly, and other materials), found wages about Rs. 1,000/-. The court concluded this too was a question of fact. The insurer had alleged collusion and had the opportunity (and in fact was permitted) to cross-examine the claimant and could have examined the employer or similar drivers to disprove the wage claim; it did not. On the available materials, the Commissioner legitimately inferred the monthly wage figure. The appellate court therefore declined to disturb the finding in the absence of a substantial question of law.

  6. "Arising out of and in the course of" Employment:

    The insurer contended that the Commissioner had found the accident occurred in the course of employment but had not explicitly found it "arose out of" employment, which would be necessary for compensation under the Act. The court considered the facts: the dumper had been loaded and the deceased went to report to a nearby officer about the trip when the other dumper caused the fatal accident on the same premises. The court reasoned that the events were "intrinsically connected" and could not be separated; thus the accident did arise out of the employment. Consequently the insurer's contention on this point failed.

Holding and Implications

Core Ruling: The appeal by the insurer is DISMISSED.

Consequences and immediate effects:

  • The Commissioner’s award of Rs. 83,428/- in favour of the claimant (respondent No. 1) and the direction that the insurer indemnify the employer remains in force.
  • The insurer had deposited the award amount; the appeal dismissal preserves the award and the indemnity direction against the insurer.
  • There is no order as to costs.

Broader implications: The court affirmed that (consistent with cited authorities and section 98(1) of the Motor Vehicles Act) an insurer may be directed to pay compensation in respect of motor-vehicle accidents and is therefore an aggrieved party entitled to appeal under section 30 of the Workmen's Compensation Act. However, on matters of primary fact such as age and wages, appellate interference is not appropriate unless a substantial question of law is demonstrated. The opinion does not purport to lay down a new legal precedent beyond applying these principles to the facts before it.

    New India Assurance Company Limited. v. Sankar Behera And Others

    S.C Mohapatra, J.:— Insurer is the appellant in this appeal under section 30 of the Workmen's Compensation Act, 1923 (in short ‘the Act’).

    2. Deceased was employed as driver of a dumper which was insured with the appellant. There is no dispute in this appeal that the deceased was a workman and would be entitled to com-pensation under the Act. Mr. S.S Basu the learned counsel for the appellant, assailed the order of the Commissioner on the ground that the deceased though sustained fatal injuries in course of employment there is no finding that the fatal injuries arose out of such employment. Mr. Basu also challenged the age and monthly wages of the deceased. Mr. S.K Dey, the learned counsel for the dependant-respondent No. 1, submitted that the age and wages are questions of fact which ought not to be gone into in this appeal in view of the proviso which confines an appeal to substantial questions of law. As regards the fatal in-juries arising out of employment, Mr. Dey, submitted that on the facts there can be no doubt that the fatal injuries arose out of employment. On 16-4-1986 at about 4.30 p.m after the dumper was loaded, the deceased as the driver of the vehicle went to make entry in the trip note book with the officer near at hand. At that time another dumper caused the fatal accident. On acc-ount of the death, his father (respondent No. I) filed the claim application before the Commissioner alleging that the deceased was aged 27 years and his monthly salary was Rs. 1400/-.

    3. In the written statement filed by the employer the occurrence and the employment of the deceased was admitted. It was stated that the monthly wages of the deceased was Rs. 580/- and he was receiving house rent of Rs. 40/- per month, admitting his liability, the employer stated that the insurer of the vehicle is to pay the compensation. On receipt of the objec-tion, notice was issued to the insurer on 24-7-1986. The insurer appeared on 6-12-1986 and prayed for a month's time to file written statement which was filed on 30-13-1986 where the liability of the insurer was denied. The monthly wages received by the deceased was also denied. It was stated in paragraph 7 as follows:

    “That this opposite party reasonably believes that the opp. party No. 1 (owner of the vehicle) colludes with the petitioner in order to obtain a unfair advantage out of the alleged accident”.

    4. Objection to such assertions were raised on behalf of the applicant.

    5. There is no other oral evidence excepting that of the applicant, who stated in cross-examination that the deceased was paying Rs. 1.000/- in between 1st and 5th of each month to his mother in his presence. Although he stated that he has no knowledge of the date of birth, he stated that he was filing the transfer certificate from the school regarding his date of birth. The transfer certificate indicates the date of birth to be 7-4-1959. With this evidence, the Commissioner found that the deceased was aged 27 at the time of accident and he died in course of employment. Discussing about the monthly wages, the commissioner took into consideration the rival contentions of the employer and the applicant and found the monthly wages to be about Rs. 1,000/-, Accordingly, the compensation of Rs. 83,428/- was awarded directing the insurer to indemnify the same. The ordering portion is quoted below:

    “In view of my aforesaid findings the award is passed against the O.P No. I and II which is to be indemnified by the O.P No. III i.e, Insurance Com-pany”.

    6. After the award was passed, the insurer deposited the amount with a letter expressing the intention to file appeal. In the said letter it was claimed by the insurer that the transfer certificate on the basis of which the age has been determined is not correct. A certificate purported to have been granted by the Headmaster of the school was enclosed. This certificate has been prayed by the appellant to be accepted as additional evidence.

    7. Neither the opposite party No. 1, the employer nor the opposite party No. 3 whose vehicle caused the accident preferred any appeal. The insurer has preferred this appeal and has also filed the receipt showing deposit of the amount of compensation awarded.

    8. Appeal is provided under section 30 of the Act. Under the first proviso of sub-section (1) such appeal shall lie against any order unless a substantial question of law is involved. At the time of admission of the appeal, no such substantial question of law has been indicated. In this background, when the matter relating to contempt was heard by me, I directed to hear the appeal itself and the matter was finally heard today.

    9. Under the scheme of the Act, the employer is made liable for the compensation under section 3. Where the workman is employed under a contractor under section 12 of the Act, the party on whose behalf the employer-contractor was working is made liable as the principal employer. Under section 14 of the Act to a limited extent an insurer is made liable. In Bibhuti Bhusan Mukherjee v. Srimati Dinamoni Dei . 521981 C.L.T 235., and in The Oriental Fire and General Insurance Co Ltd. v. Matias Burla . 601985 C.L.T 257., it has been held that the insurer can be directed to pay the compensation under the Act. This is in view of the mandatory provision under section 98(1) of the Motor Vehicles Act, 1939. where the accident is by a motor vehicle. Once the insurer is made liable under the Act and the language of section 30 of the Act does not provide as to who would file the appeal, a reasonable construction would be that any person aggrieved by the order can prefer an appeal. The insurer has been aggrieved by the order of Commissioner in this case fixing the liability on it and accordingly, the appeal by the insurer is maintainable.

    10. At this stage it is worth mentioning that the third proviso under section 30(1) requires the employer to deposit the amount. It does not require the insurer to deposit any amount. However, further discussion becomes academic in this case since the insurer has deposited the amount.

    11. In spite of my finding that the appeal by the insurer is maintainable even without deposit of the amount the first proviso to section 30(1) of the Act would also be attracted to this case. In other words, the insurer must satisfy the appellate Court that there is a substantial question of law involved in the appeal.

    12. Appellant has filed an application for admitting the certificate purported to have been issued to the insurer as addi-tional evidence in this case. No doubt such document was pro-duced before the Commissioner after the disposal of the claim proceeding. The nature of the additional evidence is the transfer certificate-purported to have been given by the Headmaster of the school in proof of the date of birth to the effect that no such person in the name of the deceased was ever reading in the school. If there would have been an application for adjournment of the proceeding by the insurer to get evidence relating to the date of birth before the Commissioner and he would have refus-ed the same, a substantial question of law would have arisen in this case for consideration whether the refusal was in volation of the principles of natural justice and whether adequate oppor-tunity was available to the insurer to prove the case. On a finding that such opportunity was not available, the additional evidence could have been taken into consideration and in case the additional evidence would have been accepted by me I would have been entitled to weigh the evidence afresh. However, on perusal of the record before the Commissioner, I am not able to find any such prayer by the insurer. Accordingly, it is not possible to admit the additional evidence in this appeal.

    13. As regards the age of the deceased employee, Mr. Basu, submitted that post mortem report (Ext. C.) which is on record indicates the opinion of the doctor that the deceased was aged about 35 years at the time of death. The transfer certificate indicates that the employee was about 27 years at the time of death. Once the transfer certificate is accepted and it is relied upon by the applicant, it is open to a Court of fact to assess both the documents and determine the age. Thus, there being two pieces of materials on record and the Commissioner being the fact finding authority having come to the conclusion that the age of the deceased was 27 years at the time of accident, in this appeal I cannot interfere with the same since it does not involve substantial question of law.

    14. There is no dispute that the age if taken to be 27 and the monthly wages is taken to be Rs. 1,000/- the calculation of the compensation is correct. Mr. Basu, however, submitted in all fairness that the age should have been taken to be 35 years keeping in mind that the age reflected in the school register at times found to be wrong. A medical expert while determining the age finds various aspects of the growth of the bone and num-ber of teeth etc. Such determination should have been discarded.

    15. If the insurer would have called the expert in this case and examined him to prove the age, possibly there would have been some force in the contention of Mr. Basu. Unfortunately, the medical officer has not been examined in the present case. Accordingly, I am not inclined to interfere with such a finding.

    16. Mr. Basu, the learned counsel for the appellant, submitted that the finding that the deceased was employed on a monthly wage of Rs. 1,000/- is arbitrary and irrational without any basis. In the written statement itself the insurer had taken the plea that the employer colluded with the applicant and the employer should prove from the documents about the wages of the deceased. The insurer could have examined the employer and could have examined similar drivers to prove the actual wages. No steps have been taken in that regard. In fact, the insurer has been permitted by the Commissioner to cross-examine the applicant possibly because of the allegation of collusion. In such circumstances, where there is a dispute as to what is the monthly wages, the Commissioner on the materials available can draw an inference from the materials proved as to the real wages of the deceased. When the father said that every month between 1st and 5th the deceased was paying Rs. 1,000/- to his mother in his presence and there is no evidence that the deceased had any other source of income, the fact finding authority can legitimately come to the conclusion that the same is the monthly wages of the employee. In such circumstances, the determination of monthly wages of Rs. 1,000/- per month is a question of fact and no substantial question of law is involved in this case.

    17. Mr. S.K Dey, the learned counsel for the claimant, submitted that the insurer should not be permitted to challenge, the facts relating to age and compensation specially when the employer has filed his written statement and contested the claim, in view of the limited scope of objection of the insurer under section 96(3) of the Motor Vehicles Act. In this case records disclose that the employer had filed his objection in Form 2 long before the insurer filed his objection. The employer had practically admitted the deceased to be his employee and the death had arisen out of and in course of employment. Liability was also admitted by him. In this background, in the objection itself when the insurer has taken a stand that the employer has colluded with the applicant, I am satisfied that the Commissioner was justified in permitting the insurer to cross-examine the witnesses on merits also, since even in a proceeding under the Motor Vehicles Act, section 110-C(2-A) thereof clearly provides that in case of collusion between the owner of a vehicle and the claimant the insurer can challenge the claim on merits. Mr. S.K Dey submitted that section 110-C(2-A) is applicable to matters pending before the Tribunal under the Motor Vehicles Act and not before the Commissioner for the Workmen's Compensation. Though Mr. Dey is correct that the provision is not directly applicable, the principle would be applicable to such a case.

    18. Mr. Basu submitted lastly which is a substantial question of law in the present case. He submitted that in order to get the compensation under the Act the death is to arise out of and in course of a employment. The Commissioner having found the accident in course of employment only and no where it having been stated that the accident arose out of employment, the order is liable to be set aside. Academically Mr. Basu is correct. In that respect I went into the matter. It is not disputed that after the dumper was loaded, the deceased went to report to the nearest officer about the trip when he met with the accident. It is in the same premises. Accordingly, the events are so intrinsically connected that one cannot be separated from the other. It can safely be concluded that the accident was caused out of the employment. All the submissions of Mr. Basu having failed, this appeal is dismissed. There shall, however, be no order as to costs.

    19. Appeal dismissed.

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    Comments

    New India Assurance Company Limited. v. Sankar Behera And Others
    (Sep 1, 1987)