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  • section 30 of the Workmen's Compensation Act (Act No. VIII of 1923)
  • provision of the Workmen's Compensation Act
  • Workmen's Compensation Act
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  • section 30 of the Workmen's Compensation Act (Act No. VIII of 1923)
  • provision of the Workmen's Compensation Act
  • Workmen's Compensation Act
Smart Summary

Structured Summary of the Opinion (Dua, J.)

Factual and Procedural Background

The premises constituting a flour-mill were let on a one-year lease by Jagdish Chander to Suraj Bhan and Kishori Lal on 9 February 1955. On 17 July 1955 an accident at the mill caused injuries to Bawa Singh (the workman and present petitioner-appellant), resulting in amputation of his arm above the elbow.

Bawa Singh applied for compensation under the Workmen's Compensation Act on 1 October 1955, naming Jagdish Chander, Suraj Bhan and Kishori Lal as respondents. By order dated 30 July 1956 the Commissioner absolved Jagdish Chander from liability but awarded compensation of Rs. 2,940 against Suraj Bhan and Kishori Lal and allowed costs incurred after 31 January 1956.

The workman appealed to the Single Judge of this Court. On 4 April 1958 the Single Judge dismissed the appeal, accepting the view that it was unlikely that Jagdish Chander (the lessor) would have agreed to retain and pay the workman given that the lease money was fixed at Rs. 125 per mensem. The Single Judge noted that the original lease deed was not produced and that Jagdish Chander did not give evidence.

The present Letters Patent appeal followed. The Letters Patent Bench (Dua, J., with Bishan Narain, J. concurring) examined additional evidence on the record, adverse inference issues arising from non-production of the lease deed and non-appearance of Jagdish Chander, and legal questions about the scope of the appellate jurisdiction under Clause 10 of the Letters Patent and the meaning of "substantial question of law" under section 30 of the Workmen's Compensation Act. The Bench allowed the appeal, set aside the Single Judge's order, and directed that Jagdish Chander also be held liable to pay Rs. 2,940 to Bawa Singh. There was no order as to costs of the appeal.

Legal Issues Presented

  1. Whether, on the evidence, Bawa Singh was an employee of Jagdish Chander (the lessor) at the relevant time.
  2. Whether a Letters Patent Bench can interfere with and reverse a Single Judge's finding of fact under Clause 10 of the Letters Patent.
  3. Whether the right of appeal from a Commissioner under section 30 of the Workmen's Compensation Act is limited to a "substantial question of law" so as to preclude the present contention raised by the appellant.
  4. Whether the court could apportion the amount of compensation between the respondents (as suggested by counsel for respondents) in this proceeding.

Arguments of the Parties

Appellant (Bawa Singh) / Supporting Evidence

  • Bawa Singh stated (P.W.10) that at the time of execution of the lease deed he was present, and that the lessor (Jagdish Chander) declared that his own "Mistry" (Bawa Singh) must remain in service and that the salary would be paid by Jagdish Chander and that such a term was included in the lease deed.
  • Khushi Ram (the scribe, P.W.7) testified that he wrote the lease deed and that it expressly incorporated that Bawa Singh would continue to be a Mistry and that the proprietor (Jagdish Chander) would pay the salary, though payment would be made on the proprietor's behalf by the contractor.
  • The appellant relied on these pieces of testimony and on the non-production of the original lease deed and non-appearance of Jagdish Chander to urge an adverse inference against the lessor.

Respondents / Counsel (as recorded)

  • Mr. Nehra (appearing for the respondents) contended that the finding whether Bawa Singh was an employee of Jagdish Chander was a finding of fact and therefore should not be interfered with on appeal under Clause 10 of the Letters Patent.
  • He also argued that the right of appeal from the Commissioner under section 30 of the Workmen's Compensation Act is limited to a "substantial question of law", and therefore the present matter could not be the subject of appeal on the factual point now raised.
  • Mr. Nehra suggested the court should apportion the compensation between Jagdish Chander and Suraj Bhan & Kishori Lal so as to avoid future inter se disputes, though he could not point to any provision in the Act empowering the Court to do so in the present proceeding.

Single Judge's Rationale (as recorded)

  • The Single Judge doubted the workman's version that Jagdish Chander would have agreed in the lease to continue to pay the salary (Rs. 125 per mensem) and some grain/fuel-wood, since lease money itself was fixed at Rs. 125 per mensem — making it improbable that the lessor would accept no profit and at the same time pay the salary and in-kind benefits.
  • The Single Judge noted the original lease deed remained with Jagdish Chander and that he did not give evidence, but nevertheless concluded that the workman's version that Jagdish Chander had to pay his salary could not be accepted.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Smt. Tara Devi v. Lal Chand, Civil Appeal No. 362 of 1957 (SC) Described withholding of the best evidence in the possession of parties as an "inversion of sound practice" (i.e., supports drawing an adverse inference where the best evidence is withheld). The Bench relied on this principle to justify drawing an adverse inference against Jagdish Chander for withholding the original lease deed and failing to give evidence, thereby accepting the workman's account supported by the scribe.
Bansi Ram v. Padam Sen, Civil Revision No. 521 of 1958 (Single Bench) Applied earlier by the author sitting in Single Bench as a consideration of the same aspect (withholding best evidence / adverse inference). The judge referred to this earlier consideration and relied on similar reasoning to draw an inference against the lessor and to accept the version given by the workman when supported by the scribe's testimony.

Court's Reasoning and Analysis

The Court examined the evidence on the record and identified material lapses in the treatment of that evidence by both the Commissioner and the Single Judge:

  1. The Court noted that the Single Judge had focussed primarily on an arithmetic improbability — that the lessor would pay a cash salary of Rs. 125 per mensem (plus in-kind benefits) while accepting lease money of Rs. 125 per mensem — without considering the possibility that such payment to the workman could be an express term of the lease and thus part of the consideration for which the mill was let.
  2. The Court observed that the testimony of Khushi Ram (P.W.7), the scribe of the lease, expressly stated that the lease included a term that Bawa Singh would continue as a Mistry and would be paid by the proprietor (Jagdish Chander), with payment effected on the proprietor's behalf by the contractor. This corroborated Bawa Singh's own evidence (P.W.10) that the lease contained such a term.
  3. As the original lease deed remained with Jagdish Chander and he abstained from testifying, the Court found that a strong adverse inference ought to be drawn against him for withholding the best evidence. The Court expressly relied on the Supreme Court's description of withholding best evidence as an "inversion of sound practice" (Smt. Tara Devi v. Lal Chand) and on prior consideration (Bansi Ram v. Padam Sen).
  4. The Bench rejected the contention that Clause 10 of the Letters Patent precluded interference with a Single Judge's finding of fact. It held that Clause 10 gives a wide right of appeal to a two-Judge Bench without the limitations found in section 100 of the CPC, and that findings of fact by a Single Judge may be reversed if considered erroneous.
  5. The Bench interpreted the phrase "substantial question of law" in section 30 of the Workmen's Compensation Act broadly — wide enough to include cases in which the Commissioner had clearly misdirected himself on a question of law. Given the material evidence not considered and the omission to draw adverse inferences, the Court concluded that the Commissioner (and the Single Judge in upholding the Commissioner's result on this point) had misdirected themselves.
  6. The Court invited explanation for the non-production of the lease deed and the non-appearance of Jagdish Chander, but no satisfactory explanation was offered; a mere suggestion that the deed might have been misplaced or lost was regarded as conjecture unsupported by record material. This reinforced the decision to draw an adverse inference.
  7. On the basis of the accepted evidence (workman's statement corroborated by the scribe) and the adverse inference, the Court concluded that Bawa Singh must be deemed to have been in the employment of Jagdish Chander (the lessor) and therefore Jagdish Chander is liable under the Workmen's Compensation Act along with the lessees.
  8. Regarding the suggestion to apportion the compensation between the liable parties, the Court held that counsel could not point to any provision in the Act empowering the Court to do so in the present proceeding. The Court noted that section 12 of the Act makes provision for indemnifying a principal who is held liable to pay compensation and that Jagdish Chander could, if entitled, seek indemnity by appropriate proceedings; the Bench expressed no opinion on that claim at this stage.

Holding and Implications

Core Ruling: The appeal is allowed; Jagdish Chander is held jointly liable with Suraj Bhan and Kishori Lal to pay Rs. 2,940 as compensation to Bawa Singh.

Implications and Consequences

  • Direct effect on the parties: Jagdish Chander is added as jointly liable with the lessees (Suraj Bhan and Kishori Lal) to pay Rs. 2,940 to the workman, Bawa Singh.
  • The Bench drew an adverse inference against Jagdish Chander for withholding the original lease deed and for not giving evidence; the court accepted the workman's account corroborated by the scribe.
  • The Court held that the Letters Patent Bench may interfere with and reverse a Single Judge's finding of fact where it is considered erroneous, and construed "substantial question of law" under section 30 of the Workmen's Compensation Act broadly to include misdirection on a question of law.
  • The suggestion to apportion the compensation in this proceeding was not acceded to; counsel could not identify a provision authorizing such apportionment here. The Court pointed to section 12 (indemnity) as the statutory remedy for a principal seeking relief, but expressed no opinion on any such indemnity claim at this stage.
  • Costs: There will be no order as to costs of this appeal.
  • Bench concurrence: The short note records that Bishan Narain, J. agreed with the decision.

The opinion does not purport to set out any broader legal principle beyond the particular application of adverse inference for non-production of the lease and the appellate scope under Clause 10 and section 30; the resolution was directed to the direct consequences for the parties in this case.


End of summary — prepared strictly from the provided opinion without addition or inference beyond the text.

    Bawa Singh v. Jagdish Chand

    Dua, J.:— The facts giving rise to this Letters Patent appeal are these: The premises, which constitute a flour-mill, were given on lease for a period of one year by Jagdish Chander to Suraj Bhan and Kishori Lal on 9th February 1955. On 17th July 1955 an accident occurred as a result of which Bawa Singh, petitioner-appellant, sustained certain injuries as a result of which his arm had to be amputated above an elbow joint.

    2. He applied for compensation under the Workmen's Compensation Act on the 1st October 1955 and the claim was preferred against Jagdish Chander, Suraj Bhan and Kishori Lal. The learned Commissioner by his order dated 30th July 1956 absolved Jagdish Chander from liability but allowed compensation to the extent of Rs. 2,940 against Suraj Bhan and Kishori Lal. Costs of the case incurred after 31st January 1956 were also allowed.

    3. Feeling aggrieved by the order absolving Jagdish Chander the workman Bawa Singh came up in appeal to this Court which was dismissed by the learned Single Judge on 4th April 1958. The question which arose before the learned Single Judge was that by virtue of a term of the lease deed by which the premises in question along with the machinery were let out by Jagdish Chander to Suraj Bhan and Kishori Lal, Bawa Singh workman (the present petitioner-appellant) had to be retained in service by the lessees for maintaining and looking after the flour-mill with the result that he must be deemed to be in the employment of Jagdish Chander. The original lease deed, from the very nature of things, must have been with Jagdish Chander the proprietor lessor; and indeed there is evidence on the record that the original document remained with him after execution by the lessees. Jagdish Chander, though a party to the proceedings, did not choose to appear in the witness-box nor was the lease deed produced. The learned Judge in Single Bench, although feeling dissatisfied with the conduct of Jagdish Chander which was described not to be above-board in withholding the lease deed and in keeping away from the witness-box, as he was in the best position to explain the whole situation, nevertheless gave decision against the workman on the ground that Bawa Singh's version that Jagdish Chander had to pay his salary could not be accepted. The learned Judge expressed himself, while dealing with this point, in the following words:

    “In the first place when the mill is being leased out it is very unlikely that Jagdish Chander should have undertaken to continue to pay the salary of Bawa Singh. It is understandable that Jagdish Chander insisted on the contractors employing Bawa Singh as the latter was his trusted mechanic. But it seems altogether unbusinesslike to accept that Jagdish Chander would agree to accept only Rs. 125 per mensem as lease money and at the same time pay the same amount and something more in the form of grain and fuel-wood to Bawa Singh.

    4. This would have brought him no profit whatsoever and it is not possible to accept on the facts disclosed that any such term as is alleged by Bawa Singh could have been incorporated in the lease deed or could have been agreed to by Jagdish Chander. The result is certainly unfortunate as I understand that Suraj Bhan and Kishori Lal are financially not in a good condition and the order which has been made in favour of Bawa Singh may not really result in any benefit to him. But on the evidence as it stands it is difficult to differ from the conclusion of the commissioner on the point.”

    5. The above reproduction of the relevant portion of the judgment of the learned Single Judge clearly shows that he was influenced exclusively by the fact that the lease money which had been fixed at Rs. 125 per mensem was not sufficient to pay the salary of the workman which amounted to Rs. 125 per mensem in cash, plus some grain and fuel-wood. The learned Single Judge also seems to have been of the view that it was only Bawa Singh's statement which constituted the sole evidence on this part of the case on the present record.

    6. The attention of the learned Judge does not seem to have been drawn to the testimony of Khushi Ram, petition-writer, who had himself scribed the lease deed. This witness who has appeared, as P.W 7 stated on oath that at the time of the execution of the lease deed Bawa Singh workman was present and it was expressly incorporated in the deed that Bawa Singh would continue to be a Mistry and that he would be paid by the proprietor; the proprietor being Jagdish Chander. The salary would be paid to the workman on behalf of Jagdish Chander proprietor.

    7. It was then stated by the witness that Bawa Singh on behalf of the proprietor would continue in service but he would be paid by the contractor. Suraj Bhan and Kishori Lal have also appeared as witnesses but their testimony on this point is far from illuminating. Kishori Lali has made a statement that within a short time of the commencement of the lease he went away after handing over the mill to Suraj Bhan and that he has practically no knowledge about the details. Suraj Bhan has admitted the execution of a stamped lease deed, the original of which was with Jagdish Chander and a copy with the witness.

    8. He has merely stated that Bawa Singh used to work the mill before the lease in question and thereafter he was retained by the lessees. He too has not cared to produce a copy of the lease deed which admittedly had been given to him nor has he produced any account books. Bawa Singh workman has also appeared as P.W 10 and he has expressly stated that at the time of the execution of the lease deed which was scribed by Munshi Khushi Ram he was present and that Jagdish Chander stated that his own Mistry must remain in service and that the workman (Bawa Singh himself) was selected to be the proprietor's (i.e Jagdish Chander's) Mistry.

    9. He has further stated that the salary had to be paid by Jngdish Chander and that there was a term to this effect in the lease deed itself. Although the workman had expressly made this statement in his examination-in-chief, in the cross-examination neither the lessor nor the lessees put any question challenging the correctness of this statement. The original lease deed having been withheld by Jagdish Chander against whom the claim for compensation was being made and he himself also having abstained from appearing in the witness-box, in my opinion, a very strong presumption must be raised against Jagdish Chander, who has withheld the best evidence.

    10. Withholding of best evidence in the possession, of parties has been described by the Supreme Court as “inversion of sound practice”: see Smt. Tara Devil v. Lal Chand, Civil Appeal No. 362 of 1957 (SC). This aspect was also considered by me sitting in Single Bench in Bansi Ram v. Padam Sen, Civil Revn. No. 521 of 1958. As a result of this discussion, I would unhesitatingly draw an inference against Jagdish Chander and accept the version given by Bawa Singh especially when it finds ample support and corroboration from the testimony of Khushi Ram, the scribe.

    11. Unfortunately the attention of the learned Single Judge was not drawn to the evidence of the scribe; nor was his attention drawn to the fact that no cross-examination was directed to the statement made by Bawa Singh in his examination-in-chief about Jagdish Chander's insistence that Bawa Singh must be retained in service and that such a term was also included in the lease deed.

    12. The learned Single Judge seems to have concentrated his attention only to the question that the lease money having been fixed at Rs. 125 per mensem, it was most unlikely that Jagdish Chander could reasonably speaking take upon himself the responsibility of paying to the workman a salary of Rs. 125 per mensem, and a certain quantity of flour and fuel-wood in addition. This argument ignores the fact that if retention in service of Bawa Singh, workman, and payment of his remuneration (which includes salary in cash and flour and fuel-Wood) was a term of the lease deed and was, therefore, a part of the consideration for which Jagdish Chander had let out the mill in question to Suraj Bhan and Kishori Lal, then obviously payment to Bawa Singh was to be made by the lessees as a part of the consideration of the lease; this payment would obviously amount, in effect, to payment made to Bawa Singh by the lessees for and on behalf of the lessor, namely, Jagdish Chander. This aspect appears to have been completely lost sight of both by the learned Single Judge and by the learned Workmen's Compensation Commissioner.

    13. Mr. Nehra has, however, contended that the finding whether or not Bawa Singh is an employee of Jagdish Chander is a finding of fact and therefore should not be interfered with on an appeal under Clause 10 of the Letters Patent. It is not possible for me to accept this contention. Clause 10 of the Letters Patent is widely worded and it provides an appeal from a judgment of a Single Judge of this Court to a Bench of two Judges without any limitation or restrictions as is found in section 100 of the CPC.

    14. It is true that as a matter of practice the finding on a question of fact given by a learned Single Judge of this Court is usually treated with respect and is not lightly interfered with but there is no legal impediment in the way of the Letters Patent Bench reversing the finding on question of fact by the learned Single Judge, if the same is considered to be erroneous. It is not open to us to read into Clause 10 of the Letters Patent any limitation on the right of appeal, which is not included in it by the Legislature.

    15. In the present case it is obvious that the attention of the learned Single Judge was not drawn to the aspect which I have mentioned above nor was the evidence of the scribe considered when determining the question whether or not Bawa Singh was, at the relevant time, an employee of Jagdish Chander.

    16. Mr. Nehra then contended that in any case the right of appeal from an order of the Commissioner as given by section 30 of the Workmen's Compensation Act (Act No. VIII of 1923) is limited to a substantial question of law, and, therefore, in the present case, no appeal on the question now raised by the appellant can be competent. Here again I find myself unable to sustain this contention. The expression substantial question of law as contemplated by section 30, in my view, must be given a wide construction so as to cover even a case in which the Commissioner has clearly misdirected himself on a question of law.

    17. In the present case not only has material evidence not been considered but there has also been an unjustified omission to draw adverse inference from the unexplained non-production of the lease deed and also from similar abstention on the part of Jagdish Chander to appear as a witness in the present proceeding. We asked Mr. Nehra expressly even now to explain the non-production of the lease deed and non-appearance of Jagdish Chander as a witness in the present case but no explanation was forthcoming. The counsel merely contended that there is a likelihood of the lease deed having been either misplaced or lost but this was obviously a conjecture when there is no material on the record supporting this suggestion.

    18. For the reason given above, this appeal succeeds and setting aside the order of the learned Single Judge and modifying the order of the learned Commissioner dated 30th July 1956 we direct that Jagdish Chander would also be liable along with Suraj Bhan and Kishori Lal to pay Rs. 2,940 as compensation to Bawa Singh applicant-appellant.

    19. Mr. Nehra suggested that we should apportion the amount of compensation payable by Jagdish Chander, and Suraj Bhan and Kishori Lal so that in future there may not be any dispute between them inter se. He, however, could not draw our attention to any provision of the Workmen's Compensation Act empowering us to do so. Section 12 of this Act under which the liability has been incurred by Jaedish Chander makes ample provision for indemnifying the principal who is held liable to pay compensation under this section. It would thus be been to Jagdish Chander if his case falls within this section to claim necessary relief by appropriate proceedings, with respect to which we express no opinion at this stage.

    20. For the foregoing reasons this appeal is allowed and Jagdish Chander along with Suraj Bhan and Kishori Lal is also held liable to pay the sum of Rs. 2,940 to Bawa Singh workman.

    21. In the circumstances of the case there will be no order as to costs of this appeal.

    22. Bishan Narain, J.:— I agree.

    DG/H.G.P

    23. Appeal allowed.

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    Comments

    Bawa Singh v. Jagdish Chand
    (May 26, 1960)