Blood Relatives Can Share Employer-Employee Relationship Under Workmen's Compensation Act: Karnataka HC

The Karnataka High Court has reiterated that under the Workmen's Compensation Act, there are no provisions prohibiting blood relatives to be employer and employee.

A single judge bench of Justice H P Sandesh sitting at Dharwad dismissed the appeal filed by the Divisional Manager of Oriental Insurance, questioning the order of Workmen's Compensation Commissioner at Koppal by which it fastened liability on the company in a claim petition filed by the legal heirs of deceased driver Azam Khan, who died in an accident in 2008.

The insurance company argued that the deceased was working for his brother and thus, there was no relationship of employer and employee.

Findings:

The court placed reliance on a coordinate bench judgment in United India Insurance Company Ltd. v. Prakash Shankar Gourav & Anr., ILR 2006 Kar. 1036, where it was held that a father engaging his son as an employee in his vehicle is not prohibited in law. Similarly, in United India Insurance Company Ltd. v. Jonsa & Ors., 2001 ACJ 1682, it was held that Commissioner's finding that two sons employed by their father as coolies in his agricultural land were workmen could not be challenged in appeal.

It also relied on New India Assurance Company Ltd., Vs. Smt. Mahananda and others, 2009 Kar MAC 476 (Kar), wherein it has clearly laid down in law there is no prohibition under the Act for the blood relatives to be employer and employee.

Following which the bench said, "It is clear that there is no any provisions under the Act that any prohibition to employ the blood relatives as driver...Licence is produced before the Court which is not rebutted by leading any rebuttal evidence by the Insurance company, the very contention that he was not a workman cannot be accepted."

Accordingly it dismissed the appeal.

Case Title: THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE CO., LTD v SAYEEDA KHANAM W/O. LATE AZAM KHAN

Case No: MFA No.25711/2011

Citation: 2022 LiveLaw (kar) 382

Date of Order: 23rd DAY OF SEPTEMBER, 2022

Appearance: M.K.SOUDAGAR, ADVOCATE FOR APPELLANT; M. AMAREGOUDA, ADVOCATE FOR R1; R2 AND R3

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