"Supreme Court Reinstates Compensation Award, Says 'Death Had Causal Connection to Employment'"

07 May 2024 8:19 AM

By: Admin

In a landmark decision, the Supreme Court of India reinstated the Workmen's Compensation Commissioner's award of ₹3,26,140 with 12% p.a. interest to the legal heirs of Sumer Singh, a driver who died while on duty. The Court set aside the High Court's reversal of the award, stating that the "death had a causal connection to employment."

The bench, comprising Justices HIMA KOHLI and RAJESH BINDAL, delivered the judgment on August 23, 2023. The case revolved around the Employee's Compensation Act, 1923, and questioned whether the death of an employee while on duty could be considered as arising out of employment.

The legal representatives of the deceased had filed an appeal against the High Court's decision, which had overturned the Commissioner's award. The Supreme Court found merit in the appeal and stated, "there is every reason to assume that long spells of driving was a material contributory factor, if not the sole cause that accelerated his unexpected death at a young age."

The Court also rejected the argument of the Insurance Company, which contended that the death did not arise out of employment. The Court noted that an "additional premium was paid to cover such eventualities under the 1923 Act."

The judgment cited previous cases like Param Pal Singh Through Father v. National Insurance Co. & Anr., and Northeast Karnataka Road Transport Corporation. v. Sujatha, to support its decision.

The ruling is seen as a significant step in clarifying the scope of the Employee's Compensation Act, 1923, particularly in cases involving the death of employees while on duty.

Date of Decision: August 23, 2023

Smt. Dariyao Kanwar & ors. vs M/s United India Insurance Co. Ltd. & anr.