Once Employer Deposes Salary Particulars, Not Open For Insurance Company To Quantify Compensation As Per Wages Under Minimum Wages Act, 1948: Andhra Pradesh High Court

Brief Facts:

The Respondents all directly depended on the deceased, G. Nagendra who worked as a driver. Nagendra earned a monthly salary of Rs. 3,500 along with a daily batta of Rs. 50. On March 5, 2005, around 11:30 a.m., while Nagendra was fulfilling his duties under the instructions of the employer, he proceeded to a mechanic shop. While there, the hydraulic-operated body of a tipper unexpectedly collapsed on Nagendra, resulting in his untimely death. This incident occurred during the course of Nagendra's employment which prompted the filing of a claim application under the Workmen's Compensation Act. Additionally, a case was registered under Section 174 Cr.P.C by Police. The Labour Commissioner after taking into consideration the evidence and the undisputed facts granted compensation of Rs.3,36,487/- considering the age and wages of the deceased.

Feeling aggrieved, the National Insurance Company Limited (“Insurance Company”) filed an appeal before the Andhra Pradesh High Court (“High Court”) under Section 30 of Employees'

Compensation Act, 1923.

Observations by the High Court:

The pivotal question before the High Court was whether the unfortunate demise of the workman occurred within the course of his employment, especially considering that he wasn't actively engaged in driving the vehicle nor was the vehicle in motion at the time of the incident. However, the High Court noted that it was undisputed that the deceased, acting upon the instructions of the employer was present at the Khader Bore Well Mechanic Shop, overseeing the repair progress of the vehicle. Tragically, it was during this duty that the hydraulic-operated body of the tipper unexpectedly fell, resulting in the immediate demise of the workman. The High Court held that the mere fact that the deceased was attending to the maintenance of the tipper at the behest of the employer sufficed to qualify the incident as occurring within the course of employment. Given that there was no other apparent reason for the deceased to be at the mechanic shop besides overseeing the vehicle's repair, the contention that the accident did not occur within the course of employment was held to be untenable by the High Court.

Additionally, the High Court addressed the argument presented regarding the quantification of compensation, contending that only the minimum wages stipulated under the Minimum Wages Act, of 1948, should be considered. However, the employer in its counter already admitted during cross-examination that the deceased was receiving a monthly salary of Rs. 3,500 along with a daily batta of Rs. 50. The High Court held that once the employer himself had provided testimony regarding the salary particulars, it was not within the purview of the insurance company to insist on quantifying compensation based solely on the wages prescribed under the Minimum Wages Act, 1948.

Consequently, the High Court dismissed the appeal.

Case Title: The National Insurance Company Limited, Anantapur vs G Sivamma And 3 Others and Others

Case Number: CIVIL MISCELLANEOUS APPEAL NO: 1112/2010

Advocate for the Appellant: Sravan Kumar

Advocate for the Respondent: Maheswara Rao Kuncheam