Supreme Court Restores Compensation for Deceased Driver, Overturns High Court Ruling, Insurance Company and Vehicle Owner Held Jointly Liable as Supreme Court Upholds Workmen's Compensation Award
In a landmark judgment, the Supreme Court of India has reinstated the compensation awarded under the Workmen's Compensation Act, 1923, to the family of a deceased driver, Panganti Suresh, who died in a tragic road accident while on duty. The Supreme Court, comprising Justices Vikram Nath and Augustine George Masih, set aside a previous ruling by the Telangana High Court, which had overturned the compensation order of Rs. 3,73,747/- along with 12% interest per annum, initially determined by the Commissioner for Workmen's Compensation.
The case originated from a fatal accident on September 10, 2004, when Suresh, employed as a driver by respondent Sathyanarayanan, died after a lorry collided with the vehicle he was driving. The appellant, Suresh's legal representative, pursued a claim under the Workmen's Compensation Act, asserting that Suresh's death occurred during the course of his employment.
Initially, the vehicle owner denied Suresh's employment in a counter-affidavit. However, during cross-examination, he admitted to employing Suresh, stating the earlier denial was due to confusion, as the accident occurred just a day after Suresh's employment began. The Commissioner for Workmen's Compensation, after evaluating oral and documentary evidence, had ruled in favor of the appellant, fixing joint and several liabilities on the vehicle owner and the insurance company.
The Insurance Company challenged the Commissioner's decision in the Telangana High Court, which set aside the award on grounds of an absence of an employer-employee relationship. The Supreme Court, however, found the High Court's judgment erroneous, emphasizing that the Commissioner's findings were based on a correct appreciation of evidence and not suffering from any legal infirmity.
The Supreme Court directed the release of the remaining compensation amount, which had been deposited by the insurance company, ensuring its timely disbursement. This judgment reinforces the accountability of employers and insurers, upholding the rights of workers and their families under the Workmen's Compensation Act.
Bottom Line:
Workmen's Compensation Act, 1923 - Compensation awarded by Commissioner upheld by Supreme Court - High Court's interference set aside - Deceased was employed as a driver, and death occurred during the course of employment.
Statutory provisions: Workmen's Compensation Act, 1923
Panganti Vijaya v. United India Insurance Company Ltd., (SC) : Law Finder Doc Id # 2833328
