High Court of KeralaSingle JudgeThe appeal is dismissed.

Janardhanan Pillai Lotus Engineers and Contractors Kerala Private Ltd v. Mohanan

Case / Petition Number:MFA (ECC) NO. 152 OF 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. Pratheep Kumar
Judgment Date
2023-12-01
Court Decision / Holding
Appeal dismissed
Final Disposition
The appeal is dismissed.

Parties to the Case

Appellants / Petitioners

  • JANARDHANAN PILLAI LOTUS ENGINEERS AND CONTRACTORS KERALA PRIVATE LTD

Respondents

  • MOHANAN AGED 55 YEARS, S/O. KUNJU KUNJU, PUTHEN PURAYIL BHAGYALAYAM, OACHIRA, KOLLAM DISTRICT, PIN-690526

Legal Representation & Advocates

Counsels for Petitioners

  • • S.Sreekumar (Kollam)
  • • Sri. K. Vijayan (V 726)

Counsels for Respondents

  • • Sri. K. Siju
  • • Smt. S. Seetha

Case Synopsis & Summary

This is a Mohamedan issue before the Kerala High Court (MFA ECC 152/2019) challenging an Employee's Compensation Commissioner’s order dated 22 February 2019, awarding Rs. 86,101 with 12% interest to Mohanan for injuries sustained on 23 May 2011 while working as a mason on a Lotus Company project. The appellant-employer contends there was no employer-employee relationship and thus the EC Commissioner’s award is unsustainable. The respondent-employee argues the EC Commissioner’s finding on fact is binding under the Act, and substantial questions of law are absent; hence the appeal should be dismissed. The court examines whether the relationship existed, supported by AW1 (the employee) and AW2 (coworker) testimonies and documentary exhibits (including AW1’s discharge summary showing amputation). The Building work reportedly started in 2011, ahead of the disputed dates, and the appellant’s RTI-derived Exhibit A7 conflicts with the evidence. The court cites Shantabai Ananda Jagtap as distinguishable on the facts and relies on Supreme Court authority to interpret the Act in a beneficial, welfare-oriented manner, noting the Commissioner is the last fact-finding authority and the appeal limits itself to substantial questions of law. The bench upholds the Commissioner’s findings and dismisses the appeal as lacking merit.

Provisions of Law Cited

Employee's Compensation Act, 1923 (Act 8 of 1923)Section 30 of the Employee's Compensation ActSection 2(1)(dd) of the Employee's Compensation ActRight to Information Act, 2005Motor Vehicles Act, 1988 (Section 166)

Legal Doctrines & Maxims

  • Beneficial construction of social welfare legislation
  • Commissioner is the last authority on facts; scope of appeal limited to substantial questions of law under the Act
  • Remand not necessarily useful where facts are clear and no substantial questions of law arise

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends there is no employer-employee relationship; the EC Commissioner’s order is vitiated by the lack of evidence on the core relationship and is therefore liable to be set aside. It is argued that the matter involves questions of fact rather than law, and the remedy under Section 30 should not re-adjudicate facts; no substantial question of law exists, hence dismissal is sought.

Contentions of Respondents

The respondent contends that the EC Commissioner’s decision is based on factual findings supported by AW1 and AW2 and exhibits; the relationship existed; the award of compensation based on 11% loss of earning capacity is justified; there is no need for remand; the appeal should be dismissed as the scope of Section 30 is limited to substantial questions of law.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Shantabai Ananda Jagtap v. Jayaram Ganpati Jagtap[2023 KHC 6674]DistinguishedFacts differ; the Kerala High Court distinguished this Supreme Court decision, finding it inapplicable to the present case.
Shahajahan & another v. Shriram General Insurance Company Ltd. & another[2021 ICO 2481]Mentioned OnlyCited to caution against treating Section 30 appeals as a first appeal on issues of fact; used to support the principle that the scope is limited to substantial questions of law.
Fulmati Dhramdev Yadav & Another v. New India Assurance Company Ltd. & Another[AIR 2023 SC 4438]PositiveSupreme Court held that EC Act is social welfare legislation to be given a beneficial construction; Commissioner is last authority on facts; scope of appeal limited to substantial questions of law.
Shantabai Ananda Jagtap v. Jayaram Ganpati Jagtap[2023 KHC 6674]DistinguishedRepeatedly distinguished due to differing facts.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Janardhanan Pillai Lotus Engineers and Contractors Kerala Private Ltd v. Mohanan and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR** **FRIDAY, THE 1[ST] DAY OF DECEMBER 2023 / 10TH AGRAHAYANA, 1945** **MFA (ECC) NO. 152 OF 2019** **ECC 531/2014 OF EMPLOYEES COMPENSATION** ## **COMMISSIONER,KOLLAM** ## **APPELLANT/OPPOSITE PARTY:** **JANARDHANAN PILLAI LOTUS ENGINEERS AND CONTRACTORS KERALA PRIVATE LTD, OPPOSITE FIRE STATION, KARUNAGAPALLY, KOLLAM DISTRICT.** **BY ADVS. S.SREEKUMAR (KOLLAM) SRI.K.VIJAYAN (V 726)** ## **RESPONDENT/APPLICANT/PETITIONER:** **MOHANAN AGED 55 YEARS, S/O. KUNJU KUNJU, PUTHEN PURAYIL BHAGYALAYAM, OACHIRA, KOLLAM DISTRICT, PIN-690526.** **BY ADVS. SRI.K.SIJU SMT.S.SEETHA** **THIS MFA (ECC) HAVING COME UP FOR ADMISSION ON 22.11.2023, THE COURT ON 01.12.2023 DELIVERED THE FOLLOWING:** _**MFA(ECC).152/2019**_ 2 ## J U D G M E N T Dated this the 1[st] day of December, 2023 This is an appeal filed under Section 30 of the Employee's Compensation Act by the opposite party in ECC.No.531/2014, against the order of the Employee's Compensation Commissioner and Industrial Tribunal, Kollam against the order dated 22.2.2019. 2. Respondent was the employee of the appellant as mason. On 23.5.2011 at about 9.30.am while he was applying grease to the mixing machine, his right hand accidentally touched the roller of the machine and thereby he sustained serious injuries. At the time of the incident, he was aged 47 years, getting monthly wages of Rs.10,000/-. He filed application before the Employee's Compensation Commissioner, claiming a sum of Rs.2,00,000/-. As per the impugned order dated 22.2.2019, the Commissioner awarded a compensation of Rs.86,101/- along with interest @ 12% per annum. Aggrieved by the above order, the opposite party filed this appeal raising various contentions. _**MFA(ECC).152/2019**_ 3 3. According to learned counsel for the appellant, there is no employer-employee relationship between the appellant and the respondent and hence the impugned order passed by the Employee's Compensation Commissioner is liable to be set aside. 4. On the other hand, the learned counsel for the respondent would that the decision taken the argue by Employee's Compensation Commissioner on facts, cannot be re-agitated in an appeal filed under Section 30 of the Employee's Compensation Act. Further, according to him, in this case there is no question of law involved and as such he prayed for dismissal of the appeal. 5. The points that arise for consideration are the following: 1. Whether the finding of the Employee's Compensation Commissioner that there exists employer-employee relationship between the appellant and the respondent, is perverse or without any evidence? 2. Whether the impugned order calls for any interference in the light of the grounds raised in the appeal? 6. Heard both sides. _**MFA(ECC).152/2019**_ 4 7. According to the respondent, while he was working as mason under the appellant for the construction of a building, he met with an accident and sustained injuries. The appellant disputes the employer-employee relationship. 8. In this case, the respondent was examined as AW1 and another witness was examined as AW2. The respondent as AW1 adduced evidence to the effect that on 23.5.2011, at about 9.30 am, while he was applying grease to the mixing machine in connection with the construction of a three storied building, his right hand accidentally touched the roller of the machine and in the incident, his right index finger was to be amputated. Exhibit A2 discharge card issued from Medical College Hospital, Thiruvananthapuram, also states that his right index finger was amputated. During the crossexamination, AW1 deposed that he was working in Lotus Company and the building under construction was for Lotus Company. In the written statement filed by the appellant, it is admitted that the appellant is the Managing Director of Lotus Company. AW2, a coworker of the respondent also spoken about the incident, in which the respondent lost his right index finger. It appears that AW2 was _**MFA(ECC).152/2019**_ 5 not even cross examined by the appellant. Therefore, from the evidence of AWs 1 and 2 it can be safely concluded that the respondent was an employee as defined under S.2(1)(dd) of Act 8 of 1923. 9. At the time of arguments, the leaned counsel for the appellant relying upon Exhibit A7, would argue that the building was constructed only in the year 2013-14 and the alleged incident was on 23.5.2011. Therefore, an attempt was made to show that both the buildings are different. It is true that in Exhibit A7, received by the appellant under the Right to Information Act, it is stated that the building was constructed in the year 2013-14. However, from the evidence of AW1 and AW2, it is evident that construction of the above building was started in the year 2011 itself. From the evidence of AW1 and AW2, it is revealed that the respondent sustained serious injuries while he was working as mason in the construction of a building for the appellant and as such the Employee's Compensation Commissioner was justified in holding that there exists employer-employee relationship between the appellant and the respondent. _**MFA(ECC).152/2019**_ 6 10. The learned counsel for the appellant relied upon the decision of Hon'ble Supreme Court in **Shantabai Ananda Jagtap v. Jayaram Ganpati Jagtap [2023 KHC 6674]** in support of his argument. In the above decision, the victim died on 17.8.1993. Immediately, his legal heirs filed a claim petition under Section 166 of the Motor Vehicles Act, before the MACT and obtained an award in their favour on 7.3.2003. Thereafter, they filed an application before the Commissioner under the provisions of Act 8 of 1923, claiming compensation with a long delay of 9 years. The owner of the vehicle was the brother of the deceased. They were having common ration card and were members of the same Joint Hindu Family. The owner of the vehicle also did not appear before the court after receiving notice. In the above circumstances, it was found that there was no employer-employee relationship between the owner of the vehicle and the deceased. The facts of the present case are entirely different and as such the above decision does not apply to the instant case. 11. In the incident, the respondent's right index finger has to be amputated. The Commissioner found that as per the schedule of _**MFA(ECC).152/2019**_ 7 the Employee's Compensation Act, the respondent sustained 11% loss of earning capacity and accordingly estimated the compensation at Rs.86,101/-. There is absolutely no grounds to interfere with the above estimation of compensation and as such the finding of the Commissioner cannot be termed as perverse or without any evidence. 12. At the fag end of the argument, the learned counsel for the appellant prayed for remanding the matter to give an opportunity to adduce evidence and to cross examine AW2. However, there is no such prayer in the appeal. Moreover, an appeal filed under Section 30 of the Employee's Compensation Act will lie only in respect of substantial question of law, which is lacking in this case. 13. In the decision in **Shahajahan & another v. Shriram General Insurance Company Ltd. & another [2021 ICO 2481]** , the Hon'ble Supreme Court deprecated the practice of deciding an appeal filed under Section 30 of the Employee's Compensation Act, as if it is a first appellate court on a question of fact as well. 14. In the decision in **Fulmati Dhramdev Yadav & Another** **v. New India Assurance Company Ltd. & Another [AIR 2023 SC** 8 _**MFA(ECC).152/2019**_ **4438]** relied upon by learned counsel for the appellant also, the Hon'ble Supreme Court held that since the Employee's Compensation Act is a social welfare legislation, it must be given a beneficial construction. The Commissioner is the last authority on facts and the scope of appeal under the Act is limited only to substantial question of law. 15. In the above factual situation, no useful purpose will be served by a remand. I do not find any merit in the appeal and as such it is liable to be dismissed. The points answered accordingly. In the result, the appeal is dismissed. Sd/C. PRATHEEP KUMAR, JUDGE sou.