LawforAll

advocatemmmohan

My photo
since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions

Just for legal information but not form as legal opinion

WELCOME TO MY LEGAL WORLD - SHARE THE KNOWLEDGE

Wednesday, January 8, 2014

Section 30 of the Employees Compensation Act, 1923/Workmen compensation Act - Appeal against the order of commissioner arise only when there is substantial question of law - Reversing the finding of commissioner regarding jural relationship of employee and worker though both are brothers - can not be over ruled by vaguely stating that it is against the documentary evidence with out showing what the documentary evidence that was said to be perused for reversing the commissioner finding - No appeal is maintainable with out involvement of substantial question of law under sec. 30 - Apex court set aside the order of High court and restored the orders of Commissioner = Smt. T.S. Shylaja …Appellant Versus Oriental Insurance Co. & Anr. …Respondents = Published in judis.nic.in/supremecourt/filename=41123

   Section 30 of the Employees Compensation Act, 1923/Workmen compensation Act - Appeal against the order of commissioner arise only when there is substantial question of law - Reversing the finding of commissioner regarding jural relationship of employee and worker though both are brothers - can not be over ruled by vaguely stating that it is against the documentary evidence with out showing what the documentary evidence that was said to be perused for reversing the commissioner finding - No appeal is maintainable with out involvement of substantial question of law under sec. 30 - Apex court set aside the order of High court and restored the orders of Commissioner = 

Section 30 of the Employees Compensation Act, 1923 no  doubt  provides
for an appeal to the High Court from the orders passed by  the  Commissioner
and enumerated in clauses (a) to (e) sub-Section (1) of Section 30.  Proviso
to Section 30(1), however, makes it abundantly clear  that  no  such  appeal
shall lie unless a substantial question of law is  involved  in  the  appeal
and in the case of an order other than an order such as is  referred  to  in
clause (b) unless the amount in dispute in  the  appeal  is  not  less  than
three hundred rupees.   Section 30(1) reads as under:


           “30. Appeals.—

           (1) An appeal shall lie to the High  Court  from  the  following
           orders of a Commissioner, namely:—

           (a) an order as awarding as compensation a lump sum  whether  by
           way of redemption of a  half-monthly  payment  or  otherwise  or
           disallowing a claim in full or in part for a lump sum;

           1[(aa) an order awarding interest or penalty under section 4A;]

           (b) an order refusing to  allow  redemption  of  a  half-monthly
           payment;

           (c) an order providing  for  the  distribution  of  compensation
           among the dependants of a deceased workman, or  disallowing  any
           claim of a person alleging himself to be such dependant;

           (d) an order allowing or disallowing any claim for the amount of
           an indemnity under the provisions of sub-section (2) of  section
           12; or

           (e) an order refusing to register a memorandum of  agreement  or
           registering the same or providing for the  registration  of  the
           same subject to conditions:

           Provided that no appeal shall lie against  any  order  unless  a
           substantial question of law is involved in the  appeal,  and  in
           the case of an order other than an order such as is referred  to
           in clause (b), unless the amount in dispute in the appeal is not
           less than three hundred rupees:

           Provided further that no appeal shall lie in any case  in  which
           the parties  have  agreed  to  abide  by  the  decision  of  the
           Commissioner, or in which the order of  the  Commissioner  gives
           effect to an agreement come to by the parties:

           Provided further that no appeal by an employer under clause  (a)
           shall lie unless the memorandum of appeal is  accompanied  by  a
           certificate by the Commissioner to the effect that the appellant
           has deposited with  him  the  amount  payable  under  the  order
           appealed against.”



8.    What is important is that in terms of the 1st proviso,  no  appeal  is
maintainable  against  any  order  passed  by  the  Commissioner  unless   a
substantial question of law is involved.  This necessarily implies that  the
High Court would in the ordinary course formulate  such  a  question  or  at
least address the same in the judgment especially when the High Court  takes
a view contrary to the view taken by the Commissioner.

 The Commissioner for Workmen’s Compensation had, in the case at  hand,
appraised the evidence adduced before him and recorded  a  finding  of  fact
that the deceased was indeed employed as  a  driver  by  the  owner  of  the
vehicle no matter the owner happened to be his brother. That  finding  could
not be lightly interfered with or reversed  by  the  High  Court.  The  High
Court overlooked the fact that  the  respondent-owner  of  the  vehicle  had
appeared as a witness and clearly stated that the deceased was  his  younger
brother, but was working as a paid driver under him. The  Commissioner  had,
in this regard, observed:

                 “After examining the judgment of the Andhra  Pradesh  High
           Court relied upon by 2nd opponent it is seen that the  owner  of
           the vehicle being the sole  witness  has  been  unsuccessful  in
           establishing his case but in this proceeding the  owner  of  the
           vehicle has appeared before this  Court  even  though  he  is  a
           relative of the deceased, and has submitted in  his  objections,
           even evidence that even though  the  deceased  was  his  younger
           brother he was working as a driver under him, and  has  admitted
           that he was paying salary to him.  The applicant in  support  of
           his case has submitted Hon’ble High Court judgment  reported  in
           ILR  2006  KAR  518.   The  Divisional  Manager,  United   India
           Insurance Company Ltd. Vs. Yellappa  Bheemappa  Alagudi  &  Ors.
           which I have examined in depth which holds that there is no  law
           that relatives cannot  be  in  employer  employee  relationship.
           Therefore it is no possible to ignore the oral  and  documentary
           evidence in favour of the applicant and such evidence has to  be
           weighed in favour of the applicant.  For these  reasons  I  hold
           that the deceased was working as driver under first opponent and
           driving Toyota Quails No.KA-02-C-423, that he died  in  accident
           on 03.09.2005,  that  he  is  a  ‘workman’  as  defined  in  the
           Workmen’s Compensation Act and it is held  that  he  has  caused
           accident in the course of  employment  in  a  negligent  fashion
           which has resulted in his death”.




10.   The only reason which the High Court has  given  to  upset  the  above
finding of the Commissioner is  that  the  Commissioner  could  not  blindly
accept the oral evidence  without  analysing  the  documentary  evidence  on
record. We fail to appreciate as to what was the documentary evidence  which
the High Court had failed to appreciate and what was the  contradiction,  if
any, between such documents and the version given by the witnesses  examined
before the Commissioner. The High Court could not  have,  without  adverting
to the documents vaguely referred to by it have upset the  finding  of  fact
which the Commissioner was entitled to record.
Suffice it to say that  apart from appreciation of evidence  adduced  before  the  Commissioner  the  High Court has neither referred to nor determined any question of law  much  less
a substantial question of law existence whereof was  a  condition  precedent
for the maintainability of any appeal under  Section  30.  
Inasmuch  as  the
High court remained oblivious of  the  basic  requirement  of  law  for  the
maintainability of an appeal before  it  and  inasmuch  as  it  treated  the
appeal to be  one  on  facts  it  committed  an  error  which  needs  to  be
corrected.

11.   We accordingly allow this appeal, set aside  the  order  of  the  High
Court and restore that passed by the Commissioner.

                                                 REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION
                        CIVIL APPEAL NO.  51 OF 2014
                 (Arising out of S.L.P. (C) No.850 of 2012)


Smt. T.S. Shylaja                                  …Appellant

      Versus

Oriental Insurance Co. & Anr.                      …Respondents

                               J U D G M E N T

T.S. THAKUR, J.

1.    Leave granted.



2.    The short question that falls for  consideration  in  this  appeal  is
whether the High Court was justified in setting aside the  order  passed  by
the Commissioner for Workmen’s Compensation holding the  appellant  entitled
to an amount of Rs.4,48,000/- towards compensation with interest @  12%  per
annum.

3.    The claim before the Commissioner arose out of  a  motor  accident  in
which the deceased-Prahlad lost his  life  while  driving  a  Toyota  Qualis
vehicle bearing registration No.KA-02/C-423. The incident  in  question,  it
appears, occurred on 3rd September 2000 near Bidadi Police Station,  on  the
Bangalore-Mysore highway involving a head on collision with a  Tipper  Lorry
bearing No.KA-02-B-9135.  The deceased was removed to the hospital where  he
died two days after the accident. A claim petition  was  then  filed  before
the Commissioner  for  Workmen’s  Compensation,  Bangalore  Sub-Division-IV,
Bangalore  by  the  appellant,  mother  of  the  deceased  for  payment   of
compensation.  The claim petition alleged that the deceased was employed  as
a driver on a monthly salary of Rs.6,000/- by the owner of the vehicle.  The
vehicle being insured  with  the  respondent-company,  the  claimant  sought
recovery of the amount from the  company  in  terms  of  provisions  of  the
Workmen’s Compensation  Act,  1923,  now  re-christened  as  the  Employee’s
Compensation Act, 1923.
The insurance company contested the claim  primarily
on the ground that the jural relationship of employer and employee  did  not
exist between the owner and the deceased. 
It was also contended that it  was
the negligence  of  the  deceased  that  had  caused  the  accident  thereby
disentitling the claimant to any compensation.

4.    On the pleadings of the parties, the Commissioner  framed  six  issues
for determination and eventually came to the conclusion  that  the  deceased
was indeed working as a paid driver of the  owner  of  the  vehicle,  Toyota
Qualis and that the claimant, the appellant herein was entitled  to  receive
an amount of Rs.4,48,000/- towards compensation having regard  to  the  fact
that the deceased was just about 20 years of age at  the  time  of  accident
and was receiving Rs.4,000/- per month towards salary.   An  award  for  the
said amount was accordingly made by the Commissioner with interest @12%  per
annum against the respondent-company who  had  admittedly  underwritten  the
risk in terms of a policy issued by it.

5.    Aggrieved by the award  made  by  the  Commissioner,  the  respondent-
company preferred an appeal, M.F.A. No. 738 of 2009 before  the  High  Court
of Karnataka at Bangalore which has been allowed by a Single Judge  of  that
Court in terms of the order impugned order before us. The High Court was  of
the view that the relationship between the  deceased  and  his  brother  the
owner of the vehicle he was driving was  not  satisfactorily  proved  to  be
that of an employee and an employer and  that  the  only  remedy  which  the
appellant, mother of the deceased had, was by way of a claim for payment  of
compensation under the Motor Vehicles Act.

6.    Appearing for the appellant Mr. G.V. Chandrashekhar, learned  counsel,
strenuously argued that the High Court was  in  error  in  entertaining  the
appeal and in reversing the view taken by the Commissioner by  re-appraising
the evidence on record. He urged that the High Court remained  oblivious  of
the provisions of Section 30(1) of the Act which clearly stipulate  that  no
appeal shall lie against any order of the Commissioner unless a  substantial
question of law fell for consideration. No such question of  law  arose  for
consideration nor was the same framed or addressed by the High Court in  the
course of the  judgment.   The  reasoning  given  by  the  High  Court  was,
according to the learned counsel, vague and based entirely on  surmises  and
conjectures hence unsustainable in law.

7.    Section 30 of the Employees Compensation Act, 1923 no  doubt  provides
for an appeal to the High Court from the orders passed by  the  Commissioner
and enumerated in clauses (a) to (e) sub-Section (1) of Section 30.  Proviso
to Section 30(1), however, makes it abundantly clear  that  no  such  appeal
shall lie unless a substantial question of law is  involved  in  the  appeal
and in the case of an order other than an order such as is  referred  to  in
clause (b) unless the amount in dispute in  the  appeal  is  not  less  than
three hundred rupees.   Section 30(1) reads as under:


           “30. Appeals.—

           (1) An appeal shall lie to the High  Court  from  the  following
           orders of a Commissioner, namely:—

           (a) an order as awarding as compensation a lump sum  whether  by
           way of redemption of a  half-monthly  payment  or  otherwise  or
           disallowing a claim in full or in part for a lump sum;

           1[(aa) an order awarding interest or penalty under section 4A;]

           (b) an order refusing to  allow  redemption  of  a  half-monthly
           payment;

           (c) an order providing  for  the  distribution  of  compensation
           among the dependants of a deceased workman, or  disallowing  any
           claim of a person alleging himself to be such dependant;

           (d) an order allowing or disallowing any claim for the amount of
           an indemnity under the provisions of sub-section (2) of  section
           12; or

           (e) an order refusing to register a memorandum of  agreement  or
           registering the same or providing for the  registration  of  the
           same subject to conditions:

           Provided that no appeal shall lie against  any  order  unless  a
           substantial question of law is involved in the  appeal,  and  in
           the case of an order other than an order such as is referred  to
           in clause (b), unless the amount in dispute in the appeal is not
           less than three hundred rupees:

           Provided further that no appeal shall lie in any case  in  which
           the parties  have  agreed  to  abide  by  the  decision  of  the
           Commissioner, or in which the order of  the  Commissioner  gives
           effect to an agreement come to by the parties:

           Provided further that no appeal by an employer under clause  (a)
           shall lie unless the memorandum of appeal is  accompanied  by  a
           certificate by the Commissioner to the effect that the appellant
           has deposited with  him  the  amount  payable  under  the  order
           appealed against.”



8.    What is important is that in terms of the 1st proviso,  no  appeal  is
maintainable  against  any  order  passed  by  the  Commissioner  unless   a
substantial question of law is involved.  This necessarily implies that  the
High Court would in the ordinary course formulate  such  a  question  or  at
least address the same in the judgment especially when the High Court  takes
a view contrary to the view taken by the Commissioner.

9.    The Commissioner for Workmen’s Compensation had, in the case at  hand,
appraised the evidence adduced before him and recorded  a  finding  of  fact
that the deceased was indeed employed as  a  driver  by  the  owner  of  the
vehicle no matter the owner happened to be his brother. That  finding  could
not be lightly interfered with or reversed  by  the  High  Court.  The  High
Court overlooked the fact that  the  respondent-owner  of  the  vehicle  had
appeared as a witness and clearly stated that the deceased was  his  younger
brother, but was working as a paid driver under him. The  Commissioner  had,
in this regard, observed:

                 “After examining the judgment of the Andhra  Pradesh  High
           Court relied upon by 2nd opponent it is seen that the  owner  of
           the vehicle being the sole  witness  has  been  unsuccessful  in
           establishing his case but in this proceeding the  owner  of  the
           vehicle has appeared before this  Court  even  though  he  is  a
           relative of the deceased, and has submitted in  his  objections,
           even evidence that even though  the  deceased  was  his  younger
           brother he was working as a driver under him, and  has  admitted
           that he was paying salary to him.  The applicant in  support  of
           his case has submitted Hon’ble High Court judgment  reported  in
           ILR  2006  KAR  518.   The  Divisional  Manager,  United   India
           Insurance Company Ltd. Vs. Yellappa  Bheemappa  Alagudi  &  Ors.
           which I have examined in depth which holds that there is no  law
           that relatives cannot  be  in  employer  employee  relationship.
           Therefore it is no possible to ignore the oral  and  documentary
           evidence in favour of the applicant and such evidence has to  be
           weighed in favour of the applicant.  For these  reasons  I  hold
           that the deceased was working as driver under first opponent and
           driving Toyota Quails No.KA-02-C-423, that he died  in  accident
           on 03.09.2005,  that  he  is  a  ‘workman’  as  defined  in  the
           Workmen’s Compensation Act and it is held  that  he  has  caused
           accident in the course of  employment  in  a  negligent  fashion
           which has resulted in his death”.




10.   The only reason which the High Court has  given  to  upset  the  above
finding of the Commissioner is  that  the  Commissioner  could  not  blindly
accept the oral evidence  without  analysing  the  documentary  evidence  on
record. We fail to appreciate as to what was the documentary evidence  which
the High Court had failed to appreciate and what was the  contradiction,  if
any, between such documents and the version given by the witnesses  examined
before the Commissioner. The High Court could not  have,  without  adverting
to the documents vaguely referred to by it have upset the  finding  of  fact
which the Commissioner was entitled to record.
Suffice it to say that  apart
from appreciation of evidence  adduced  before  the  Commissioner  the  High
Court has neither referred to nor determined any question of law  much  less
a substantial question of law existence whereof was  a  condition  precedent
for the maintainability of any appeal under  Section  30.  Inasmuch  as  the
High court remained oblivious of  the  basic  requirement  of  law  for  the
maintainability of an appeal before  it  and  inasmuch  as  it  treated  the
appeal to be  one  on  facts  it  committed  an  error  which  needs  to  be
corrected.

11.   We accordingly allow this appeal, set aside  the  order  of  the  High
Court and restore that passed by the Commissioner. We  grant  three  months’
time to the respondent to deposit the amount of compensation  together  with
interest, if not already paid  or  deposited  failing  which  the  appellant
shall be free to seek redress before the Commissioner for  recovery  of  the
amount awarded in her favour. No costs.



                                                          .……………….……….…..…J.
                                                               (T.S. THAKUR)




                                                         .…..…………………..…..…J.
                                                            (VIKRAMAJIT SEN)
New Delhi
January 3, 2014

Or. VIII, rule 1 C.P.C.- filing of written statement - time fixed in C.P.C - is only directory not mandatory - extention of time beyond the prescribed period - can be granted on sufficient cause - Rejection of the application is set aside - time granted on costs of Rs. 50,000/- = SANDEEP THAPAR ...APPELLANT VERSUS SME TECHNOLOGIES PRIVATE LIMITED ...RESPONDENTS = Published in judis.nic.in/supremecourt/filename=41128

     Or. VIII, rule 1 C.P.C.- filing of written statement - time fixed in C.P.C - is only directory not mandatory - extention of time beyond the prescribed period - can be granted on sufficient cause - Rejection of the application is set aside - time granted on costs of Rs. 50,000/- =
 The application of the appellant for seeking extension  in
           time for filing the written statement has been rejected with the
           observation that that Order VIII Rule 1 CPC is mandatory and the
           Court cannot permit filing of a written statement beyond the  30
           days from the date of service of summons.  At  best,  the  Court
           has power to permit a period of further 60 days from the date of
           service of summons  upon  the  defendant  to  file  the  written
           statement. But this has to be done for reasons to be recorded in
           writing.  Since the appellant herein has filed  the  application
           beyond the period of 30 days + 60 days, it was  not  permissible
           for the Court  to  allow  the  appellant  to  file  the  written
           statement.  

  The purpose of  providing  the  time  schedule  for
                 filing the written statement under Order VIII,  Rule  1  of
                 CPC is to expedite and not to  scuttle  the  hearing.   The
                 provision spells out a disability  on  the  defendant.   It
                 does not impose an embargo on the power  of  the  Court  to
                 extend the time.  Though, the language of  the  proviso  to
                 Rule 1 of Order VIII of the  CPC  is  couched  in  negative
                 form, it does not specify any  penal  consequences  flowing
                 from the non-compliance.  The provision being in the domain
                 of the Procedural Law, it has to be held directory and  not
                 mandatory. The power of the Court to extend time for filing
                 the written statement beyond the time schedule provided  by
                 Order VIII, Rule 1 of the CPC is not completely taken away.


                 (v)     Though Order VIII, Rule 1 of the CPC is a  part  of
                 Procedural Law and hence directory,  keeping  in  view  the
                 need for expeditious trial of civil causes which  persuaded
                 the Parliament to enact the provision in its present  form,
                 it  is  held that ordinarily the


                  time schedule contained in the provision is to be  followed
                 as a rule and  departure  therefrom  would  be  by  way  of
                 exception.  A prayer for extension  of  time  made  by  the
                 defendant shall not be granted just as a matter of  routine
                 and merely for asking, more so when the period of  90  days
                 has expired.  Extension of time may be allowed by way of an
                 exception, for reasons to be assigned by the defendant  and
                 also be placed on record in writing, howsoever briefly,  by
                 the Court on its being satisfied.  Extension of time may be
                 allowed if it was needed to be given for the  circumstances
                 which are exceptional, occasioned  by  reasons  beyond  the
                 control of the  defendant  and  grave  injustice  would  be
                 occasioned if the time was  not  extended.   Costs  may  be
                 imposed and  affidavit  or  documents  in  support  of  the
                 grounds pleaded by the defendant for extension of time  may
                 be demanded, depending on the facts and circumstances of  a
                 given case.”




           8.    We are satisfied that in the circumstances of  this  case,
           the High Court ought to have permitted  the  appellant  to  file
           written statement, beyond the period prescribed  in  Order  VIII
           rule 1, given the facts and circumstances of this case.


                                                                      ...6/-












                                     :6:


           9.    In  view  of  the  above,  the  appeal  is  allowed.   The
           appellant is permitted to file the written  statement  within  a
           period of two weeks from today on payment of Rs.50,000/- (Rupees
           fifty thousand) as cost.
                                                 

   REPORTABLE
                        IN THE SUPREME COURT OF INDIA


                        CIVIL APPELLATE JURISDICTION


                         CIVIL APPEAL NO. 65 OF 2014
       [Arising out of Special Leave Petition (Civil) No.5951 of 2011]


           SANDEEP THAPAR                         ...APPELLANT


                                 VERSUS


           SME TECHNOLOGIES PRIVATE
           LIMITED                                ...RESPONDENTS


                                    ORDER


           1.    Leave granted.
           2.    This appeal has been  filed  impugning  the  judgment  and
           order dated 12th November,  2010  in  FAO(OS)  NO.607  of  2010,
           whereby the Division Bench of the Delhi High Court dismissed the
           appeal filed by the appellant in I.A.  NO.13902  of  2008  filed
           under Order VIII rule 1 praying for extension of time for filing
           written statement by the defendant  i.e.  the  appellant  herein
           till I.A. No. 11803 of 2008 filed  under  Order  I  rule  10  to
           implead Mr. Sharad Maheshwari as plaintiff.  The  aforesaid  Mr.
           Sharad Maheshwari is the  Managing  Director  of  the  plaintiff
           Company who is privy to the entire cause of action of  the  suit
           filed for recovery of  Rs.39.90  lakhs  based  on  alleged  oral
           agreement/understanding.   The   applications   filed   by   the
           appellant were dismissed by the learned Single Judge of the High
           Court on 3rd August, 2010.
                                                                      ...2/-




                                     :2:
           3.    The aforesaid order was  challenged  before  the  Division
           Bench. The Division Bench after  hearing  the  counsel  for  the
           parties has observed that the learned single judge has correctly
           held that it is not necessary to implead Mr.  Sharad  Maheshwari
           as the plaintiff as the company being a legal entity is entitled
           to  file  a  suit  in  its  own  name  through   an   authorized
           representative.   It  is  also  observed  that  it  is  for  the
           plaintiff to prove its case during the  trial.   Therefore,  non
           impleadment of Mr. Sharad Maheshwari will have consequences only
           for the plaintiff and not for the appellant.  The  plea  of  the
           appellant that since Mr. Sharad Maheshwari  had  not  filed  his
           affidavit, despite the  entire  suit  being  based  on  an  oral
           agreement  alleged  to  have  been  entered  into  between   the
           appellant and Mr. Maheshwari, in case the appellant was to  file
           his written statement that would disclose his defence, has  been
           rejected by the Division Bench.


           4.    The High Court was of the opinion that even if Mr.  Sharad
           Maheshwari  is  impleaded  and  had  filed  an  affidavit,   the
           averments in the plaint could not have been changed.   In  other
           words,  the  character
                                                                      ...3/-




                                     :3:


           of the plaint, the pleadings contained therein  and  the  relief
           claimed would remain the same.


           5.    The application of the appellant for seeking extension  in
           time for filing the written statement has been rejected with the
           observation that that Order VIII Rule 1 CPC is mandatory and the
           Court cannot permit filing of a written statement beyond the  30
           days from the date of service of summons.  At  best,  the  Court
           has power to permit a period of further 60 days from the date of
           service of summons  upon  the  defendant  to  file  the  written
           statement. But this has to be done for reasons to be recorded in
           writing.  Since the appellant herein has filed  the  application
           beyond the period of 30 days + 60 days, it was  not  permissible
           for the Court  to  allow  the  appellant  to  file  the  written
           statement.


           6.    Learned counsel  for  the  appellant  has  submitted  that
           undoubtedly the  limit  under  Order  VIII  rule  1  has  to  be
           observed, but in exceptional circumstances in  order  to  ensure
           that the injustice is not done, the Court will have the power to
           permit the defendant to file the written statement.
                                                                      ...4/-




                                     :4:
           7.    We have considered the  submission  made  by  the  learned
           counsel.  In our opinion, the submission  made  by  the  learned
           counsel is well founded in view of the observations made by this
           Court in
Kailash versus Nanhku and others reported in  (2005)  4  SCC 480],
wherein this Court has observed as follows:
                 46.     We sum up and  briefly  state  our  conclusions  as
                 under:-


                 (i)     ....


                 (ii)    ....


                 (iii)   ....


                 (iv)    The purpose of  providing  the  time  schedule  for
                 filing the written statement under Order VIII,  Rule  1  of
                 CPC is to expedite and not to  scuttle  the  hearing.   The
                 provision spells out a disability  on  the  defendant.   It
                 does not impose an embargo on the power  of  the  Court  to
                 extend the time.  Though, the language of  the  proviso  to
                 Rule 1 of Order VIII of the  CPC  is  couched  in  negative
                 form, it does not specify any  penal  consequences  flowing
                 from the non-compliance.  The provision being in the domain
                 of the Procedural Law, it has to be held directory and  not
                 mandatory. The power of the Court to extend time for filing
                 the written statement beyond the time schedule provided  by
                 Order VIII, Rule 1 of the CPC is not completely taken away.


                 (v)     Though Order VIII, Rule 1 of the CPC is a  part  of
                 Procedural Law and hence directory,  keeping  in  view  the
                 need for expeditious trial of civil causes which  persuaded
                 the Parliament to enact the provision in its present  form,
                 it  is  held that ordinarily the


                                                                      ...5/-














                                     :5:




                 time schedule contained in the provision is to be  followed
                 as a rule and  departure  therefrom  would  be  by  way  of
                 exception.  A prayer for extension  of  time  made  by  the
                 defendant shall not be granted just as a matter of  routine
                 and merely for asking, more so when the period of  90  days
                 has expired.  Extension of time may be allowed by way of an
                 exception, for reasons to be assigned by the defendant  and
                 also be placed on record in writing, howsoever briefly,  by
                 the Court on its being satisfied.  Extension of time may be
                 allowed if it was needed to be given for the  circumstances
                 which are exceptional, occasioned  by  reasons  beyond  the
                 control of the  defendant  and  grave  injustice  would  be
                 occasioned if the time was  not  extended.   Costs  may  be
                 imposed and  affidavit  or  documents  in  support  of  the
                 grounds pleaded by the defendant for extension of time  may
                 be demanded, depending on the facts and circumstances of  a
                 given case.”




           8.    We are satisfied that in the circumstances of  this  case,
           the High Court ought to have permitted  the  appellant  to  file
           written statement, beyond the period prescribed  in  Order  VIII
           rule 1, given the facts and circumstances of this case.


                                                                      ...6/-












                                     :6:


           9.    In  view  of  the  above,  the  appeal  is  allowed.   The
           appellant is permitted to file the written  statement  within  a
           period of two weeks from today on payment of Rs.50,000/- (Rupees
           fifty thousand) as cost.






                                                     ....................,J.
                                                     (SURINDER SINGH NIJJAR)




                                          ...............................,J.
                                          (FAKKIR MOHAMED IBRAHIM KALIFULLA)
           NEW DELHI
           JANUARY 02, 2014

Tuesday, January 7, 2014

Workmen compensation- Accident – fixation of compensation – payment of interest whether from the date of accident or from the date of award – Apex court held yes – from the date of accident and set aside the High court order and further held that The decisions in Mubasir Ahmed and Mohd. Nasir insofar as they took a contrary view to the earlier decisions in Pratap Narain Singh Deo and Valsala K. do not express the correct view and do not make binding precedents = SABERABIBI YAKUBBHAI SHAIKH & ORS. Petitioner(s) VERSUS NATIONAL INS.CO.LTD.& ORS. Respondent(s)= published in http://judis.nic.in/supremecourt/filename=41127= http://courtnic.nic.in/supremecourt/qrydisp.asp

                                                                  REPORTABLE


                        IN THE SUPREME COURT OF INDIA


                        CIVIL APPELLATE JURISDICTION


                         CIVIL APPEAL NO. 8 OF 2014
       [Arising out of Special Leave Petition (Civil) No.8569 of 2013]




           SABERABIBI YAKUBBHAI SHAIKH
           & ORS.                                 ...APPELLANTS


                                 VERSUS


           NATIONAL INSURANCE CO. LTD.
           & ORS.                                 ...RESPONDENTS


                                    ORDER


           1.    Delay condoned.


           2.    Leave granted.


           3.    The appellants are the wife and the relatives of  deceased
           driver who died in a road  accident.  The  deceased  driver  was
           driving a truck bearing No. GJ-17-T-8607,  which  was  owned  by
           Yunusbhai  Gulambhai  Shaikh,  respondent  No.2   herein.    The
           deceased was 36 years of age at the time of  the  accident.   On
           20th  November,  1996,  the  appellants  raised   a   claim   of
           compensation for a sum of Rs.2,15,280/- and 12% interest therein
           from the date of accident by filing a claim  application  before
           the  Workmen  Compensation  Commissioner/Labour  Court.    After
           passage of more than 16 years, the  wife  and  children  of  the
           deceased driver had still not received any compensation.
                                                                      ...2/-




                                     :2:


           4.    The appellants filed a compensation application before the
           Workmen Compensation Commissioner/Labour Court on 20th November,
           1996. The appellants made a  claim  of  Rs.2,15,280/-  and  also
           penalty to the tune of 50% of the compensation  i.e.  a  sum  of
           Rs.1,07,640/-, thus, making the grand  total  of  Rs.3,22,920/-.
           Respondent  No.1-   the   Insurance   Company,   contested   the
           compensation application.  On 23th December, 2010,  the  learned
           Commissioner awarded compensation on account of death in the sum
           of Rs.2,13,570/- with 12% interest from the  date  of  accident.
           The learned Commissioner also awarded Rs.1,06,785/- as penalty.


           5.    Aggrieved and dissatisfied with the aforesaid judgment and
           award passed by the learned Commissioner, the Insurance  Company
           filed First Appeal before the High Court.


           6.    By judgment and order, dated 24th January, 2012, the  High
           Court has partly allowed  the  First  Appeal.   The  High  Court
           directed the respondent No.1 - Insurance Company to pay interest
           on the amount   of   compensation   from   the   date   of
                                                                      ...3/-






                                     :3:


           adjudication of claim application i.e. 23th December,  2010  and
           not from one month after from the date  of  accident  i.e.  21st
           August, 1996.  A further direction was issued  that  the  excess
           amount towards interest, if any,  deposited  by  the  respondent
           No.1 – Insurance Company be refunded to it.   The  judgment  and
           order of the Commissioner for Workmen Compensation was  modified
           to that extent.


           7.    In coming to the aforesaid  conclusion,  the  High   Court
           relied upon the judgment of this Court reported in Uttar Pradesh
           State  Road  Transport  Corporation  now  Uttarakhand  Transport
           Corporation versus Satnam Singh, (2011) 14 SCC 758,  wherein  it
           has been held that the interest was payable  under  the  Workmen
           Compensation Act from the date of the Award  and  not  from  the
           date of accident.


           8.    Aggrieved by the aforesaid judgment of the Hgh Court,  the
           appellants have filed the present appeal.
                                                                      ...4/-








                                     :4:
           9.    Learned counsel for the appellants has submitted that  the
           aforesaid judgment of the High Court is contrary to the law laid
           down by this Court in the case  of  Oriental  Insurance  Company
           Limited versus Siby George and others [(2012) 12 SCC 540].


           10.   We have perused the aforesaid judgment.   We  are  of  the
           considered opinion that the aforesaid judgment  relied  upon  by
           the learned counsel for the appellants is  fully  applicable  to
           the facts and circumstances of this case.  This Court considered
           the earlier judgment relied upon by the High Court and  observed
           that the judgments in the case of National Insurance Co. Ltd. v.
           Mubasir Ahmed [(2007) 2 SCC 349] and Oriental Insurance Co. Ltd.
           v. Mohd. Nasir [(2009) 6 SCC 280] were per incuriam having  been
           rendered without considering the  earlier  decision   in  Pratap
           Narain Singh Deo v. Srinivas Sabata [(1976) 1 SCC 289].  In  the
           aforesaid judgment, upon consideration of the entire  matter,  a
           four-judge Bench of this Court had held  that  the  compensation
           has to be paid from the date of the accident.
                                                                      ...5/-








                                     :5:


           11.   Following the aforesaid judgments, this Court in  Oriental
           Insurance Company Limited versus Siby George and others  (supra)
           reiterated the legal position and held as follows:


                 “11.    The Court then referred to a Full  Bench  decision
                of the Kerala High Court in United India Insurance Co. Ltd.
                v. Alavi  and  approved  it  insofar  as  it  followed  the
                decision in Pratap Narain Singh Deo.


                 12.     The decision in  Pratap Narain Singh Deo was by  a
                four-judge Bench and in Valsala K. by a  three-judge  Bench
                of this  Court.   Both  the  decisions  were,  thus,  fully
                binding on the Court in Mubasir Ahmed and Mohd. Nasir, each
                of  which  was  heard  by  two  Judges.   But  the  earlier
                decisions in  Pratap Narain Singh Deo and Valsala  K.  were
                not brought to the notice of the Court  in  the  two  later
                decisions in Mubasir Ahmed and Mohd. Nasir.


                 13.     In the light of the decisions  in   Pratap  Narain
                Singh Deo and Valsala K., it is not open  to  contend  that
                the payment of compensation would fall due only  after  the
                Commissioner's order or with reference to the date on which
                the claim application is made.  The  decisions  in  Mubasir
                Ahmed and Mohd. Nasir insofar as they took a contrary  view
                to the earlier decisions in  Pratap Narain  Singh  Deo  and
                Valsala K. do not express the correct view and do not  make
                binding precedents.”


                                                                      ...6/-








                                     :6:


           12.   In view of the aforesaid settled proposition of  law,  the
           appeal is allowed and the judgment and order of the  High  Court
           is set aside.  The appellants shall be entitled to  interest  at
           the rate of 12% from the date of the accident.


           13.   No cost.






                                                     ....................,J.
                                                     (SURINDER SINGH NIJJAR)




                                          ...............................,J.
                                          (FAKKIR MOHAMED IBRAHIM KALIFULLA)
           NEW DELHI
           JANUARY 02, 2014

Workmen compensation- Accident - fixation of compensation - payment of interest whether from the date of accident or from the date of award - Apex court held yes and set aside the High court order and further held that The decisions in Mubasir Ahmed and Mohd. Nasir insofar as they took a contrary view to the earlier decisions in Pratap Narain Singh Deo and Valsala K. do not express the correct view and do not make binding precedents = SABERABIBI YAKUBBHAI SHAIKH & ORS. Petitioner(s) VERSUS NATIONAL INS.CO.LTD.& ORS. Respondent(s)= published in http://courtnic.nic.in/supremecourt/qrydisp.asp

Workmen compensation- Accident - fixation of compensation - payment of interest whether from the date of accident or from the date of award -   Apex court held yes and set aside the High court order and further held that  The decisions in Mubasir Ahmed and Mohd. Nasir insofar as they took a contrary view to the earlier decisions in Pratap Narain Singh Deo and Valsala K. do not express the correct view and do not make binding precedents  = 
We have perused the aforesaid judgment. We are of the
considered opinion that the aforesaid judgment relied upon by
the learned counsel for the appellants is fully applicable to
the facts and circumstances of this case. 

This Court considered
the earlier judgment relied upon by the High Court and observed
that the judgments in the case of National Insurance Co. Ltd. v.
Mubasir Ahmed [(2007) 2 SCC 349] and Oriental Insurance Co. Ltd.
v. Mohd. Nasir [(2009) 6 SCC 280] were per incuriam having been
rendered without considering the earlier decision in Pratap
Narain Singh Deo v. Srinivas Sabata [(1976) 1 SCC 289].
 

In the
aforesaid judgment, upon consideration of the entire matter, a
four-judge Bench of this Court had held that the compensation
has to be paid from the date of the accident.

11. Following the aforesaid judgments, this Court in Oriental
Insurance Company Limited versus Siby George and others (supra)
reiterated the legal position and held as follows:
"11. The Court then referred to a Full Bench decision
of the Kerala High Court in United India Insurance Co. Ltd.
v. Alavi and approved it insofar as it followed the
decision in Pratap Narain Singh Deo.
12.
The decision in Pratap Narain Singh Deo was by a
four-judge Bench and in Valsala K. by a three-judge Bench
of this Court. Both the decisions were, thus, fully
binding on the Court in Mubasir Ahmed and Mohd. Nasir, each
of which was heard by two Judges. But the earlier
decisions in Pratap Narain Singh Deo and Valsala K. were
not brought to the notice of the Court in the two later
decisions in Mubasir Ahmed and Mohd. Nasir.

13. In the light of the decisions in Pratap Narain
Singh Deo and Valsala K., it is not open to contend that
the payment of compensation would fall due only after the
Commissioner's order or with reference to the date on which
the claim application is made. The decisions in Mubasir
Ahmed and Mohd. Nasir insofar as they took a contrary view
to the earlier decisions in Pratap Narain Singh Deo and
Valsala K. do not express the correct view and do not make
binding precedents."

12. In view of the aforesaid settled proposition of law, the
appeal is allowed and the judgment and order of the High Court
is set aside. The appellants shall be entitled to interest at
the rate of 12% from the date of the accident.


ITEM NO.65 COURT NO.8 SECTION XV


S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (Civil) No(s).8569/2013
(From the judgment and order dated 24/01/2012 in FA No.197/2012 of the
HIGH COURT OF GUJARAT AT AHMEDABAD)

SABERABIBI YAKUBBHAI SHAIKH & ORS. Petitioner(s)

VERSUS

NATIONAL INS.CO.LTD.& ORS. Respondent(s)

(With appln(s) for c/delay in filing SLP and office report)

Date: 02/01/2014 This Petition was called on for hearing today.

CORAM :
HON'BLE MR. JUSTICE SURINDER SINGH NIJJAR
HON'BLE MR. JUSTICE FAKKIR MOHAMED IBRAHIM KALIFULLA

For Petitioner(s) Mr. O.P. Bhadani, Adv.
Mr. Ashok Anand, Adv.
Mr. Rakesh Kumar Singh, Adv.
Mr. Fazal Ahmad, Adv.

For Respondent(s) Mr. S.L. Gupta, Adv.
Mr. Ram Ashray, Adv.
Mr. D.P. Singh Yadav, Adv.
Mr. J.P. Jayant, Adv.
Ms. Shalu Sharma, Adv.

UPON hearing counsel the Court made the following
O R D E R

Delay condoned.
Leave granted.
The appeal is allowed in terms of the signed reportable
order.


|(VINOD LAKHINA) | |(INDU BALA KAPUR) |
|COURT MASTER | |COURT MASTER |



(SIGNED REPORTABLE ORDER IS PLACED ON THE FILE)

REPORTABLE


IN THE SUPREME COURT OF INDIA


CIVIL APPELLATE JURISDICTION


CIVIL APPEAL NO. 8 OF 2014
[Arising out of Special Leave Petition (Civil) No.8569 of 2013]




SABERABIBI YAKUBBHAI SHAIKH
& ORS. ...APPELLANTS


VERSUS


NATIONAL INSURANCE CO. LTD.
& ORS. ...RESPONDENTS


ORDER


1. Delay condoned.


2. Leave granted.


3. The appellants are the wife and the relatives of deceased
driver who died in a road accident. The deceased driver was
driving a truck bearing No. GJ-17-T-8607, which was owned by
Yunusbhai Gulambhai Shaikh, respondent No.2 herein. The
deceased was 36 years of age at the time of the accident. On
20th November, 1996, the appellants raised a claim of
compensation for a sum of Rs.2,15,280/- and 12% interest therein
from the date of accident by filing a claim application before
the Workmen Compensation Commissioner/Labour Court. After
passage of more than 16 years, the wife and children of the
deceased driver had still not received any compensation.
...2/-




:2:


4. The appellants filed a compensation application before the
Workmen Compensation Commissioner/Labour Court on 20th November,
1996. The appellants made a claim of Rs.2,15,280/- and also
penalty to the tune of 50% of the compensation i.e. a sum of
Rs.1,07,640/-, thus, making the grand total of Rs.3,22,920/-.
Respondent No.1- the Insurance Company, contested the
compensation application. 

On 23th December, 2010, the learned
Commissioner awarded compensation on account of death in the sum
of Rs.2,13,570/- with 12% interest from the date of accident.
The learned Commissioner also awarded Rs.1,06,785/- as penalty.



5. Aggrieved and dissatisfied with the aforesaid judgment and
award passed by the learned Commissioner, the Insurance Company
filed First Appeal before the High Court.


6. By judgment and order, dated 24th January, 2012, the High
Court has partly allowed the First Appeal. The High Court
directed the respondent No.1 - Insurance Company to pay interest
on the amount of compensation from the date of
...3/-






:3:


adjudication of claim application i.e. 23th December, 2010 and
not from one month after from the date of accident i.e. 21st
August, 1996. A further direction was issued that the excess
amount towards interest, if any, deposited by the respondent
No.1 - Insurance Company be refunded to it. The judgment and
order of the Commissioner for Workmen Compensation was modified
to that extent.


7. In coming to the aforesaid conclusion, the High Court
relied upon the judgment of this Court reported 

in Uttar Pradesh
State Road Transport Corporation now Uttarakhand Transport
Corporation versus Satnam Singh, (2011) 14 SCC 758,
 

wherein it
has been held that the interest was payable under the Workmen
Compensation Act from the date of the Award and not from the
date of accident.



8. Aggrieved by the aforesaid judgment of the Hgh Court, the
appellants have filed the present appeal.
...4/-








:4:
9. Learned counsel for the appellants has submitted that the
aforesaid judgment of the High Court is contrary to the law laid
down by this Court 

in the case of Oriental Insurance Company
Limited versus Siby George and others [(2012) 12 SCC 540].



10. We have perused the aforesaid judgment. We are of the
considered opinion that the aforesaid judgment relied upon by
the learned counsel for the appellants is fully applicable to
the facts and circumstances of this case. 

This Court considered
the earlier judgment relied upon by the High Court and observed
that the judgments in the case of National Insurance Co. Ltd. v.
Mubasir Ahmed [(2007) 2 SCC 349] and
Oriental Insurance Co. Ltd.
v. Mohd. Nasir [(2009) 6 SCC 280] were per incuriam having been
rendered without considering the earlier decision in Pratap
Narain Singh Deo v. Srinivas Sabata [(1976) 1 SCC 289].
 

In the
aforesaid judgment, upon consideration of the entire matter, a
four-judge Bench of this Court had held that the compensation
has to be paid from the date of the accident.
...5/-








:5:


11. Following the aforesaid judgments, this Court in Oriental
Insurance Company Limited versus Siby George and others (supra)
reiterated the legal position and held as follows:


"11. The Court then referred to a Full Bench decision
of the Kerala High Court in United India Insurance Co. Ltd.
v. Alavi and approved it insofar as it followed the
decision in Pratap Narain Singh Deo.


12. The decision in Pratap Narain Singh Deo was by a
four-judge Bench and in Valsala K. by a three-judge Bench
of this Court. Both the decisions were, thus, fully
binding on the Court in Mubasir Ahmed and Mohd. Nasir, each
of which was heard by two Judges. But the earlier
decisions in Pratap Narain Singh Deo and Valsala K. were
not brought to the notice of the Court in the two later
decisions in Mubasir Ahmed and Mohd. Nasir.


13. In the light of the decisions in Pratap Narain
Singh Deo and Valsala K., it is not open to contend that
the payment of compensation would fall due only after the
Commissioner's order or with reference to the date on which
the claim application is made. The decisions in Mubasir
Ahmed and Mohd. Nasir insofar as they took a contrary view
to the earlier decisions in Pratap Narain Singh Deo and
Valsala K. do not express the correct view and do not make
binding precedents."


...6/-








:6:


12. In view of the aforesaid settled proposition of law, the
appeal is allowed and the judgment and order of the High Court
is set aside. The appellants shall be entitled to interest at
the rate of 12% from the date of the accident.


13. No cost.






....................,J.
(SURINDER SINGH NIJJAR)




...............................,J.
(FAKKIR MOHAMED IBRAHIM KALIFULLA)
NEW DELHI
JANUARY 02, 2014