High Court of KeralaDivision BenchAppeal dismissed; the Commissioner's order stands.

Divisional Manager, National Insurance Co. Ltd. vs K. Rajendran and Savithri

Case / Petition Number:MFA.No.86 of 2006 (WCC.46/2001 of W.C.C TVM)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K.M. Joseph
  • A.M. Shaffique
Judgment Date
2011-12-19
Court Decision / Holding
Appeal dismissed. The High Court held that no substantial question of law had been demonstrated to justify interference with the Commissioner's order, and that the alleged fraud and conflicting pleadings did not warrant reversal of the award.
Final Disposition
Appeal dismissed; the Commissioner's order stands.

Parties to the Case

Appellants / Petitioners

  • Divisional Manager, National Insurance Co. Ltd.

Respondents

  • K. Rajendran
  • Savithri

Legal Representation & Advocates

Counsels for Petitioners

  • • Lal George

Counsels for Respondents

  • • G. Unnikrishnan

Case Synopsis & Summary

This is a Division Bench judgment of the Kerala High Court arising from MFA No. 86 of 2006 (WCC 46/2001, Workmen’s Compensation Court, TVM). The appellant, Divisional Manager, National Insurance Co. Ltd., challenges a Workmen’s Compensation Commissioner’s order directing the insurer to pay Rs. 66,301 with 12% interest from the date of the accident to the claimant, K. Rajendran, and Savithri, the respondent. The claimant alleges he was employed as a loader/unloader of stones for the vehicle Regn. No KL7-0-7142, and on 31 October 2000, a heavy stone fell on his right leg causing injuries. The Commissioner’s record shows oral evidence from the claimant’s wife and another witness, with Exts. A1–A9 admitted, while the respondents produced no evidence. The appellant contends there is no valid employer–employee relationship and that the accident itself is denied; Annexure A1, sworn by the first opposite party, states the vehicle was not involved and disputes the claimant’s status as a workman. The appellant argues fraud was involved, noting contradictory notices and statements (reply notice, written statement) and asserts that compelling the examiner’s summons is unjustified. The respondents counter that fraud must be proven and that the evidence supports the Commissioner’s order. The High Court discusses the need for a substantial question of law under S.30 and ultimately upholds the Commissioner’s finding, dismissing the appeal as non‑frivolous or non‑jurisdictional.

Provisions of Law Cited

Section 22 of the Workmen's Compensation Act, 1923First proviso to Section 30 of the Workmen's Compensation Act, 1923

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that there is no valid employer–employee relationship and that the accident is denied. Annexure A1 sworn by the first opposite party claims the vehicle was not involved and denies that the claimant was her workman. The insurer argues that the evidence, including contradictory notices and statements and alleged fraud, warrants denial of liability and that compelling production of the first opposite party as a witness would not necessarily aid the case. It relies on jurisprudence requiring a substantial question of law for interference and on the obligation to show fraud by the opponent.

Contentions of Respondents

The respondents maintain that the accident occurred and the claimant was their workman, with the written statement and reply notice aligning on the occurrence of the accident. They challenge the alleged fraud and argue that the insurer’s duty to cooperate cannot override the factual findings of the Commissioner. They contend that even if summoned, the first opposite party’s evidence would be a mere version against the claimant’s testimony, and that; on the facts, the Commissioner properly concluded liability.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
N.L.Lalan v. V.A. John1972 KLT 132PositiveCited with approval to illustrate the requirement of a substantial question of law for entertaining an appeal under the Workmen's Compensation scheme; the principle was discussed and applied as to what constitutes a substantial question of law.
Raveendran v. Somavally1995(2) KLJ 319PositiveReferenced as following the same principle about substantial questions of law, a principle adverted to by the earlier case and followed by a Division Bench in the cited decision.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE A.M.SHAFFIQUE MONDAY, THE 19TH DECEMBER 2011 / 28TH AGRAHAYANA 1933 MFA.No. 86 of 2006() -------------------WCC.46/2001 of W.C.C. TVM. .................... APPELLANT/2ND OPPOSITE PARTY IN WCC NO.46/01 ------------------------------------------------ DIVISIONAL MANAGER, DIVISIONAL OFFICE, NATIONAL INSURANCE CO. LTD., DIVISIONAL OFFICE, ST.JOSEPH'S PRESS BUILDING, VAZHUTHACAUD, THIRUVANANTHAPURAM, REPRESENTED BY ITS ASSISTANT MANAGER, MOTOR THIRD PARTY CLAIM SECTION, AJAY VIHAR, M.G.ROAD, ERNAKULAM. BY ADV. SRI.LAL GEORGE RESPONDENTS/APPLICANT & 1ST OPPOSITE PARTY --------------------------------------------- 1. K.RAJENDRAN, S/O. KUTTAN NADAR, PARAYANTHALA VEEDU, PANTHAPLAVIKKONAM, NELLINADU, VENJARAMOODU, TRIVANDRUM. 2. SAVITHRI, W/O. SURENDRAN, CHANALAVAVILAKOM, CHERUTHALAMPADU, PANGODE, THIRUVANANTHAPURAM. ADV. SRI.G.UNNIKRISHNON FOR R1 THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 19/12/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **K.M.JOSEPH & A.M.SHAFFIQUE, JJ. * * * * * * * * * * * * *** M.F.A.No.86 of 2006 **==> picture [178 x 2] intentionally omitted <==** Dated this the 19[th] day of December 2011 ## **J U D G M E N T** ## **K.M.JOSEPH,J** The appellant is the second opposite party in a proceedings under Section 22 of the Workmen's Compensation Act. It calls in question the order passed by the Commissioner by which it has been called upon to pay a sum of Rs.66,301/- with interest at 12% per annum from the date of the accident. 2. The case put forth by the applicant before the Commissioner is briefly as follows: He was employed by the first opposite party for loading and unloading of stones to and from the vehicle bearing Regn.No.KL7-0-7142 owned by him. On 31/10/2000 at about 5.00 p.m. while he was engaged in unloading of stones from the said vehicle, a big stone fell on his right leg and he sustained serious injuries. 3. Before the Commissioner, oral evidence was adduced by the wife of the applicant and another witness. Exts.A1 to A9 were produced. There was no evidence on the side of the respondents. 2 M.F.A.No.86 of 2006 4. In the appeal, the substantial question of law purported to be raised are as follows: (A) Considering the facts and circumstances of the case, especially in the light of the denial of the accident, whether the Court below is justified in rejecting the petition submitted by the applicantcompany to summons and examine the 1[st] opposite party-2[nd] respondent herein. (B) Considering the facts and circumstances of the case, in a case where the accident is denied, whether the Court of Workmen Compensation Commissioner is bound to insist for the production of wound certificate and criminal court records like FIR in order to prove the genuineness of the claim. 5. We have heard the learned counsel for the appellant and the learned counsel for the 1[st] respondent. Though served, there is no representation for the second respondent who is the first opposite party/employer of the applicant. The learned counsel for the appellant would submit before us that this is a case where there is absolutely no basis for the finding that the applicant was a workman of the first opposite party. The appellant has produced before this Court Annexure A1 which is 3 M.F.A.No.86 of 2006 purported to be sworn to by the first opposite party/2[nd] respondent. The substance of the affidavit supports the case of the appellant that there is no employer-employee relationship. In the affidavit, the first opposite party would state that the vehicle was not involved in the accident and that she also denies that the applicant was her workman. 6. Therefore, it is pointed out that this is a case of fraud. A letter was in fact addressed to the Commissioner by the first opposite party therein on similar lines as is found in the affidavit as Annexure A1 in this case. Per contra, the learned counsel appearing on behalf of the applicant therein would submit that this is a case where reply notice was sent on behalf of the first opposite party where she did not dispute the employment or the accident. It is further pointed out that she engaged a counsel before the court below and a written statement was filed on similar lines as is found in the reply notice. It is further pointed out that reply notice was sent by one lawyer and the written statement was filed by yet another lawyer. It is further contended that in case of fraud, it is settled law that it is for the party to prove the fraud. Therefore the ingredients for the proof 4 M.F.A.No.86 of 2006 of fraud is clearly wanting , he contends. 7. He also relied on judgments of this Court in **N.L.Lalan v. V.A.John [1972 KLT 132]** and **Raveendran v. Somavally [1995(2) KLJ 319].** In **N.L.Lalan** (Supra), the learned Single Judge has inter alia stated as follows: “There is an initial obstacle in the way of the appellant because the first proviso to S.30, which confers the appellate power on the High Court, restricts appeals to cases where a substantial question of law is involved. I cannot exercise powers under S.30 unless I am satisfied on this jurisdictional point of a substantial question of law. It must be noticed that a question of fact however substantial, cannot masquerade as a question of law, and further that any question of law cannot automatically be treated as a substantial one even if the amount involved is substantial or the argument pressed is vehement. The expression 'substantial question of law' is not new to the Workmen's Compensation Act, 1923, but finds a place in S.110 of the Civil Procedure Code and Art.133 of the Indian Constitution. May be, that the meaning of words may change depending on the context in which they occur and the statute 5 M.F.A.No.86 of 2006 which uses them. Even so, there must be something substantial about a substantial question of law. Out of deference to the words of the statute 1 must remind myself that what is contemplated is not a question of law alone; it must also possess the attribute of substantiality. If it is of great public importance or if it arises so frequently as to affect a large class of people or is so basic to the operation of the Act itself, one may designate the question of law as substantial. But, where it is covered already by precedents or the law on that aspect is well settled, the mere difficulty of applying the facts to that law cannot make it a substantial question of law.” The said principle has been adverted to and followed by a Division Bench in the decision reported in **Raveendran** (Supra). 8. No doubt, the learned counsel for the appellant would point out that this is a case where the appellant had filed a petition seeking issue of summons to the first opposite party to give evidence and denial of that request resulted in essentially miscarriage of justice and gives rise to a substantial question of law. To the same, the learned counsel for the appellant would 6 M.F.A.No.86 of 2006 point out that an argument note was filed on behalf of the appellant wherein the appellant does not appear to have pursued the request to call the first opposite party as witness. He would also contend that it is well settled law that one party cannot insist for the examination of the opposite party. To the same, the learned counsel for the appellant would point out that under the terms of the Contract of insurance the insured is obliged to render all assistance to the insurer in the prosecution of the contentions of the insurer. 9. We are of the view that we need not interfere. As correctly pointed out, an appeal cannot be entertained unless a substantial question of law is made out. In this case, on the basis of evidence before the Commissioner which we have already adverted to, the Commissioner has taken a decision. This is a case where the first opposite party issued a reply notice stating that an accident took place and that the applicant was her workman. What is more important is apparently she decided to engage the service of another lawyer in the proceedings before the Commissioner. Therefore, she engaged another lawyer and filed a written statement before the Commissioner. In the 7 M.F.A.No.86 of 2006 written statement also, she has chosen to toe the same line as she had taken in the reply notice, that is to say, she has stated that the accident had taken place and the applicant was her workman. 10. There is another aspect of the matter. Even if we were to accept the request of the appellant allowing her to be examined even ignoring the contention of the applicant that she cannot be called as a witness and we presume that she gives evidence in support of the contention of the appellant, it will be her word against the word of the applicant and we will again be thrown back in the realm of appreciation of evidence. Having regard to all circumstances present in this case, we would think that the appellant has not made a case for interference. Consequently, this appeal is dismissed. ## **(K.M.JOSEPH, JUDGE)** ## **(A.M.SHAFFIQUE, JUDGE)** jsr // True Copy// PA to Judge M.F.A.No.86 of 2006 8 M.F.A.No.86 of 2006 9 10 M.F.A.No.86 of 2006 **K.M.JOSEPH & M.C.HARI RANI, JJ.** .No. of 200 ORDER/JUDGMENT 30/082010