Court emphasizes circumstantial evidence and oral agreements to affirm employer-employee relationship under the Employees' Compensation Act, 1923.
In a landmark decision, the Bombay High Court has overturned a previous ruling by the Labour Commissioner, establishing that an employer-employee relationship can exist without a written contract under the Employees' Compensation Act, 1923. The judgment was delivered by Justice Jitendra Jain in the case of Shakuntala Tilakdhari Gupta and others versus Shri Jawaharlal R. Gupta and others.
The case revolved around the tragic accident on March 29, 2009, which claimed the life of a driver who was temporarily hired by the respondent, Shri Jawaharlal R. Gupta, to drive to Rajasthan. The Labour Commissioner had earlier rejected the application for compensation filed by the driver's dependents, citing the absence of a proven employer-employee relationship.
The High Court's ruling emphasized the significance of circumstantial evidence and oral agreements in establishing such a relationship. Justice Jain highlighted that the deceased, referred to as a "driver" in the First Information Report (FIR) lodged by the respondent, was not a relative or friend, thereby supporting the claim that he was indeed hired as a driver. The court noted that the nature of employment, rather than the presence of a written contract, is crucial under the Employees' Compensation Act.
The court also criticized the Labour Commissioner for not adequately considering critical evidence, such as the FIR and the site inspection report, which were essential to the case. The judgment underscored the role of the Labour Commissioner in administering welfare legislation to protect powerless applicants, urging for a comprehensive evaluation of all available evidence.
The High Court directed the Labour Commissioner to calculate the compensation within eight weeks to ensure the applicants receive their dues promptly, recognizing the extensive delay since the accident occurred in 2009.
This judgment not only provides relief to the deceased's family but also sets a significant precedent for similar cases, affirming that short-term employment and oral agreements can establish an employer-employee relationship under Indian law.
Bottom Line:
Employees' Compensation Act, 1923 - Employer-employee relationship can be established through circumstantial evidence and oral or implied contracts even in absence of a written agreement.
Statutory provision(s):
Employees' Compensation Act, 1923, Sections 2(dd), 2(e), 23, Schedule II.
Shakuntala Tilakdhari Gupta v. Shri Jawaharlal R. Gupta, (Bombay) : Law Finder Doc id # 2856990
