PRAVEENBHAI S. KHAMBHAYATA versus UNITED INDIA INSURANCE COMPANY LTD. & ORS.

Citation: [2015] 2 S.C.R. 436 · Decided: 17-02-2015 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Appeal(s) allowed
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A 
B 
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[2015) 2 S.C.R. 436 
PRAVEENBHAI S. KHAMBHAYATA 
v. 
UNITED INDIA INSURANCE COMPANY LTD. & ORS. 
(Civil Appeal No. 1970 of 2015) 
FEBRUARY 17, 2015 
[V. GOPALA GOWDA AND R. BANUMATHl,JJ.) 
Workmen's Compensation Act, 1923 - s. 147 - Death 
of workman in the course of employment -
Insurance 
company to indemnify the owner of the vehicle for death 
of a person who was employed by him in another vehicle 
0 - Liability of -
Deceased employed as cleaner of one 
vehicle and while filling water in the radiator of another 
dumper, met with an accident resulting in fatal injuries -
Labour court holding that the owners of the vehicle, jointly 
and severally liable to pay compensation along with 10% 
E penalty and 6 % interest p.a. and insurance company not 
liable - High Court upheld the order - On appeal, held: 
Cleaner filled water in the radiator of vehicle only on the 
direction of the employer and thus, was working in the 
course of employment - The owner produced the insurance 
F policy which covered the vehicle involved in the accident 
- Both the vehicles were parked in the same space, both 
were insured with the insurance company and the owner 
was one and the same and since the deceased being the 
cleaner and the claimants hailing from the lowest strata of 
G society, insurance company directed to indemnify the owner 
for the death of deceased - Statutory rate of penalty is 
awarded at the rate of 15% and interest is awarded at the 
rate of 12% p.a. - s. 4-A (3)(a) and (b) - Constitution of 
H 
436 
PRAVEENBHAI S. KHAMBHAYATA v. UNITED INDIA 437 
INSURANCE COMPANY LTD. 
India, 1950 -Art. 142. 
A 
Allowing the appeal, the Court 
HELD: 1.1 The insurance policy of a public 
service vehicle is deemed to cover an employee 8 
engaged in the said vehicle and the liability of the 
insurance company to pay compensation for the death 
or injuries sustained by the workman. Payment of 
compensation for the death of workman or injuries 
sustained by the workman is limited to the liability C 
arising in the Employees Compensation Act, 1923. 
[Para 9] [442-E-F] 
1.2 Considering the facts of the case, both the 
vehicles were parked in the same space and it can be D 
safely stated that the deceased cleaner was filling the 
water in the radiator of vehicle no.GJ-3U-5391 only on 
the direction of the employer and thus, the cleaner was 
working in the course of employment. The High Court E 
rejected the claim of the appellant on the ground that 
the insurance policy of vehicle No. GJ-3V-7785 was not 
produced but now since the appellant has produced 
the insurance policy which covers the vehicle involved 
in the accident which provides to indemnify the owner F 
of the vehicle in case of any accident caused to the 
workman limited to the extent of liability under 
Workmen's Compensation Act. [Para 11] (443-E-H] 
1.3 Both the vehicles were insured with the first G 
respondent-insurance company and the owner being 
.one and the same and since the deceased being the 
cleaner and the claimants hailing from the lowest strata 
of society, in exercise of our extra-ordinary jurisdiction H 
438 
SUPREME COURT REPORTS 
[2015] 2 S.C.R. 
A under Article 142 of the Constitution of India, it is 
appropriate to direct the first respondent-insurance 
company to indemnify the appellant for the death of 
deceased. [Para 12] [444-A-B] 
B 
1.4 Having regard to the passage of time and in 
the interest of justice, statutory rate of penalty i.e. 
15% is to be ordered in addition to the statutory 
interest payable at the rate of 12% per annum. The 
1st respondent-insurance company shall pay the 
C amount of Rs. 3,25,365/- to the appellant which it 
has already deposited towards compensation. The 
impugned judgment of the High Court is set aside. 
[Paras 15 and 16] [446-C; 447-A-B] 
D Ved Prakash Garg vs. Premi Devi & Ors. (1997) 8 SCC 1: 
1997 (4) Suppl. SCR 250; Oriental Insurance Company 
Ltd. vs. Brij Mohan And Ors. (2007) 7 SCC 56: 2007 (6) 
SCR 843; Deddappa & Ors. vs. National Insurance 
Company Ltd. (2008) 2 SCC 595: 
2007 (13) SCR 287 
E - referred to. 
Case Law Reference 
1997 (4) Suppl. SCR 250 
F 
2007 (6 ) SCR 843 
2007 (13) SCR 287 
referred to. Para 6 
referred to. Para 13 
referred to. Para 14 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 
G 1970 of 2015 
' 
From the Judgment and Order dated 16.04.2014 of 
the High Court of Gujarat at Ahmedabad in First Appeal 
No. 282 of 2014. 
H 
Jayant Mohan, Karan Mathur for the Appellant. 
PRAVEEN
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