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  • sec. 30 of the Workmen's Compensation Act, 1923 (hereinafter referred to as the Act)
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  • sec. 30 of the Workmen's Compensation Act, 1923 (hereinafter referred to as the Act)
Smart Summary

Factual and Procedural Background

This appeal arises under section 30 of the Workmen's Compensation Act, 1923, filed by Madanlal, an employer, against the order of the Workmen's Compensation Commissioner, Jodhpur, dated 15th April 1959. The Commissioner awarded Rs. 900 to the respondent, Mangali, as compensation for the death of her daughter, Miss Gopi, who died due to injuries sustained from a verandah collapse during construction work on a house owned by Madanlal. Miss Gopi was employed as a labourer in connection with this construction. The appellant denied liability, contending that Miss Gopi was a casual daily wage labourer employed not for the employer’s trade or business but for personal purposes, and questioned the respondent’s status as a dependant. The Commissioner framed three issues concerning the nature of employment, the relationship between the respondent and the deceased, and the relief to be granted, ultimately deciding in favor of the respondent and awarding compensation. Madanlal filed this appeal challenging the findings.

Legal Issues Presented

  1. Whether Miss Gopi was a workman within the meaning of section 2(1)(n) of the Workmen's Compensation Act, 1923.
  2. Whether Miss Gopi was employed by the appellant or by a contractor acting on his behalf.
  3. Whether the employment was casual and not for the purposes of the employer's trade or business.
  4. Whether the respondent was a dependant entitled to compensation.

Arguments of the Parties

Appellant's Arguments

  • Miss Gopi was not a workman as defined under the Act because she was a daily wage-earner and not employed on monthly wages not exceeding Rs. 400.
  • Miss Gopi’s employment was casual in nature and not connected to the employer’s trade or business.
  • Miss Gopi was employed by Ramzan, a contractor, and not directly by the appellant, thus the appellant should not be liable for compensation.

Respondent's Arguments

  • This information was not available in the provided opinion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ellerman's City and Hall Lines v. Asis Thomas Interpretation of “monthly wages” in section 2(1)(n) of the Act to include daily wage earners based on average monthly earnings. The court accepted the precedent’s interpretation, holding that daily wage earners may qualify as workmen under the Act.
Nadirsha Hormusji Sidhwa v. Krishnabai Bala Clarification on the meaning of “casual employment” as a matter of fact and not capable of precise definition. The court relied on this precedent to emphasize that the question of casual employment is a factual determination and difficult to define precisely.
Vinayaka Mudaliar v. Mindala Pottiamma Recognition that subsidiary business activities, such as letting property, fall within the employer’s trade or business for the purposes of the Act. The court applied this principle to hold that construction work on a rented house is connected to the employer’s trade or business.

Court's Reasoning and Analysis

The court first examined the definition of “workman” under section 2(1)(n) of the Act, focusing on whether the phrase “on monthly wages not exceeding Rs. 400” excludes daily wage earners. Relying on the precedent set in Ellerman's City and Hall Lines v. Asis Thomas, the court interpreted this phrase to mean average monthly wages rather than requiring monthly payment, thereby including daily wage earners within the definition of workman.

Regarding the casual nature of employment, the court noted that “casual” is a colloquial and fact-dependent term without a precise definition. The burden of proving casual employment lies with the employer, who failed to demonstrate that Miss Gopi’s employment was casual. The court further observed that appeals under section 30 are limited to substantial questions of law, and the question of casual employment was a factual one, thus not open to challenge on appeal.

On whether the employment was for the employer’s trade or business, the court found that the construction was connected to a subsidiary business activity—leasing property—and thus fell within the employer’s trade or business as per section 2(7) of the Act. The court emphasized that both conditions—casual employment and employment otherwise than for trade or business—must be satisfied to exclude a labourer from the definition of workman. Since neither condition was met, Miss Gopi was properly classified as a workman.

Finally, the court addressed the contention that the deceased was employed by a contractor, Ramzan, and not by the appellant. Evidence showed Ramzan was a gajdhar (foreman) employed by the appellant, without authority to directly employ labourers on his own behalf. Therefore, the employment of Miss Gopi was held to be by the appellant, albeit through Ramzan.

Holding and Implications

The appeal is dismissed with costs.

The court upheld the compensation award of Rs. 900 to the respondent, confirming that Miss Gopi was a workman within the meaning of the Workmen's Compensation Act and that her employment was not casual nor outside the employer’s trade or business. The decision affirms that daily wage earners engaged in construction work on buildings exceeding one storey are covered under the Act and that subsidiary business activities fall within the scope of an employer’s trade or business. No new precedent was established; the ruling applies existing legal principles to the facts, resulting in the dismissal of the employer’s appeal and sustaining the compensation award.

    Madanlal v. Mangali

    Chhangani, J.:— This is an appeal under sec. 30 of the Workmen's Compensation Act, 1923 (hereinafter referred to as the Act) by Madanlal, an employer, from the order of the Workmen's Compensation Commissioner, Jodhpur, dated 15th April, 1959, awarding a sum of Rs. 900/- to the respondent Mangali in respect of an accident resulting in the death of Miss Gopi, daughter of the respondent.

    2. The material facts may be very briefly stated as follows:—

    Madanlal, the employer, is a clerk in Maharaja Umed Mills Ltd., Pali. He owns two houses at Pali. One of the houses is used by him for his residence. The other house is utilised for purposes of leasing it to others, and the employer has been deriving income therefrom. In respect of this second house, he started construction either by way of repairs or by way of additions and improvements in the year 1957. Miss Gopi, daughter of the respondent was employed as a labourer in connection with this construction. On 4th November, 1957 when deceased Gopi was collecting construction materials on the ground-floor, the verandah on the third floor of the building under construction fell down and she received very serious and fatal injuries, which ultimately caused her death on the same day at 4-30 p.m The respondent Mst. Mangali is the mother of the deceased Gopi and is consequently her dependant. On 16th November, 1957, the respondent put up an application before the Commissioner for awarding to her Rs. 900/- as compensation on account of the death of Miss Gopi. The appellant denied the claim of the respondent. His case was that Miss Gopi, the deceased, was a casual labourer employed on daily wages only and that the house was being constructed for the personal use of the non-applicant and consequently, Miss Gopi was not employed for the purpose of the employer's trade or business. He expressed ignorance about the allegation made by the respondent that she was a dependant of the deceased Gopi.

    3. The Commissioner framed the following three issues:—

    (1) Whether (Miss) Gopi was employed as a casual labourer under the employment of the non-petitioner which employment was neither his trade or business.

    (2) Whether the applicant is the widowed mother of (Miss) Gopi.

    (3) What relief the applicant is entitled to?

    4. He decided issue No. 1 against the non-applicant and issue No. 2 in favour of the applicant, and awarded a sum of Rs. 900/- as compensation.

    5. Aggrieved by this order, Madanlal, the employer, has filed the present appeal.

    6. I have heard Mr. Sohanlal Chowdhary on behalf of the appellant and Shri Marudhar Mridul on behalf of the respondent.

    7. Learned counsel for the appellant has urged two main contentions in this appeal:

    (1) That, the deceased, Miss Gopi was not a workman within the meaning of the terra as defined in sec. 2(1)(n) of the Act.

    (2) That, Miss Gopi was not employed by the appellant, but was employed by one Ramzan, a contractor working on his behalf and, therefore, he cannot be held liable for payment of any compensation.

    8. Dealing with the first contention, it will be useful to quote the relevant portion of the definition of “workman” as given in sec. 2(a) of the Act:—

    “Workman” means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business) who is—

    (ii) employed on monthly wages not exceeding four hundred rupees, in any such capacity as is specified in Schedule II.

    9. Schedule II specifies the various capacities in which the employment of workmen will bring them within the category of the definition. Article (viii) of Schedule II provides that a person is a workman who is employed in the construction, repair or demolition of any building which is designed to be or is or has been more than one storey in height above the ground or twenty feet or more from the ground level to the apex of the roof. The building in connection with the repairs of which Miss Gopi died, answers to the description given in Article (viii) of Schedule II and obviously the status of Miss Gopi as a workman cannot be disputed on the nature of employment. The learned counsel, however, has urged the following points for consideration in support of his contention that Miss Gopi was not a workman:—

    (1) That, she was not in receipt of monthly wages and was a daily wage-earner and, therefore, she could not be a workman in view of the words, “on monthly wages not exceeding four hundred rupees” occurring in sec. 2(1)(n) of the Act.

    (2) That, her employment was of a casual nature and that she was not employed for the purposes of the employer's trade or business.

    10. The determination of the first contention depends upon the proper interpretation of the words “on monthly wages not exceeding” Rs. 400/- According to the appellant, these words imply that the workman must be in receipt of monthly wages. I am not, however, prepared to accept this interpretation of these words. These words came up for consideration in Ellerman's City and Hall Lines v. Asis Thomas (1). Beaumont C.J after considering the various provisions of the Act expressed an opinion “that the reference to employment on monthly wages in sec. 2(1), sub-clause (n) means employment at wages which did not exceed an average of Rs. 300/- (now Rs. 400/-) a month. It seems to me quite impossible, reading this Act as a whole, to say that it was limited to workmen who are employed by the month so that it would not include workmen employed by the day or by the week or by the year. If that were the meaning of the Act, every employer could get out of it by employing his workmen otherwise than by the month. I feel no doubt whatever that the meaning of the expression ‘monthly wages not exceeding three hundred rupees’ means wages which do not exceed on an average of Rs. 300/- a month.” The learned Chief Justice in this connection derived support from sec. 5, which deals with the method of calculating wages.

    11. No contrary authority has been brought to my notice and I have no hesitation in accepting the interpretation placed on these words by Beaumont C.J and in holding that a daily wage-earner may very well be a workman under sec. 2(1)(n) of the Act.

    12. The second point urged on behalf of the appellant was that Gopi's employment was of a casual nature. The term “casual” as used in the section is not a matter of precision, but is a colloquial term. It is not capable of being exactly defined. The word “casual” is some times used as opposed to ordinary as for example in connection with leave claimed by Government servants. Some times, it is used to denote occasional as opposed to regular. It cannot be said to have one uniform meaning. The use of the word “casual” in this context was considered by Beaumont C.J in an earlier Bombay case, Nadirsha Hormusji Sidhwa v. Krishnabai Bala(2). After referring to English rulings, the learned Judge observed that, “the rule adopted in England is this: that it is impossible to define what casual employment is. There are some cases in which the employment is obviously not casual, and other cases in which the employment is obviously casual. There are a number of debatable cases between these two extremes and the Courts have held that in those debatable cases, the decision of the County Court Judge must prevail.” Indeed, it is very difficult to lay down a precise test for determination, “whether] a particular employment is casual or not.” We may, however, adopt rough tests by posing questions, whether the employer not ordinarily requiring the employment of a labourer, employes some labourer, or whether an employee not ordinarily standing in need of employment, by chance accepts a particular employment. It will be again a very difficult question whether both the tests should be satisfied or satisfaction of one of the requirements will be sufficient. In my opinion, it will be futile to attempt a formula for judging whether an employment is casual or not, for in the ultimate analysis, it is a question of fact to be determined on the facts and circumstances of the case and diverse considerations must weigh in a proper determination of the question.

    13. However, the burden of proving the casual nature of the employment must be, in the scheme of the Act, upon the employer and was so placed in this case. The appellant has failed to show either that Miss Gopi sought the employment by chance or that the employer employed her as a matter of chance in fact, there are absolutely no materials on record to support the contention that her employment was casual. Besides, it is not open to the appellant to contest a finding of fact in an appeal under sec. 30 of the Act, as an appeal lies only when a substantial question of law is involved. The question posed for consideration is essentially one of fact and not of law and can in no case be considered a substantial question of law on a most liberal interpretation of the expression, “substantial question of law.”

    14. With regard to the third point that Miss Gopi was not employed for the employer's trade of business, I consider that this again is a pure question of fact. The house in which the construction was going on, was let out to other persons and the employer was deriving benefit therefrom. This is certainly a subsidiary business though not the principal business within the terms of sec. 2(7) of the Act. Vinayaka Mudaliar v. Mindala Pottiamma (3) is a clear authority in support of this proposition. On these facts the compensation Commissioner has in my opinion correctly found that Miss Gopi was employed for the purposes of the employer's trade or business. It will be further pertinent to point out in this connection that the word “and” occurring in the definition of “workman” has been used conjunctively and, therefore, in order to take out a labourer from the category of a workman, both the conditions must be satisfied:—

    (1) that the employment must be casual.

    (2) that the employment must be otherwise than in the employer's trade or business.

    Absence of only one of these conditions will not result in taking out a labourer from the category of a workman. In this particular case, however, both the conditions have been found to be absent by the Commissioner and as observed above, the findings in this connection being on (questions of fact, are not liable to be challenged in this appeal. I must, therefore, hold that Miss Gopi was a workman within the meaning of sec. 2(1)(n) of the Act.

    15. Now so far as the second contention is concerned, the evidence produced on behalf of the appellant shows that Ramzan was only a gajdhar employed by the employer and as a gajdhar, he was not in a position to employ labourer directly on his own behalf. The employment of Miss Gopi in this case must be held to have been made by the employer Madanlal himself, although through the gajdhar, Ramzan. Learned counsel for the respondent in this connection wanted to argue that the employer Madan Lal would certainly be liable for compensation even though it be held that Ramzan employed Miss Gopi as a contractor executing a contract is the appellant. I am not, however, inclined to go into this question, as in my opinion, it has been clearly proved on record that the employment of Miss Gopi was made by Madanlal himself, although through his gajdhar Ramzan. There is no force in the second contention raised by the learned counsel.

    16. The result is that there are absolutely no merits in this appeal, which is hereby dismissed with costs.

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    Comments

    Madanlal v. Mangali
    (Mar 8, 1960)