High Court of KeralaSingle JudgeAppeal dismissed.

MFA (ECC) No. 169 of 2010

Case / Petition Number:MFA (ECC) No.169/2010
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • G. Girish
Judgment Date
2024-04-09
Court Decision / Holding
The appeal is dismissed. The court upholds the Commissioner for Workmen’s Compensation’s award of Rs.1,13,736 with interest and costs, and rejects the insurer’s contention that liability is limited to the current owner. It emphasizes the application of deeming provisions under Section 157 MV Act to WCA claims and the doctrine of notional extension of employment, citing Mallamma (2014) 14 SCC 137 and related precedents to affirm indemnity and the coverage of the insured even after ownership transfer.
Final Disposition
Appeal dismissed.

Parties to the Case

Appellants / Petitioners

  • THE ORIENTAL INSURANCE COMPANY LIMITED

Respondents

  • RADHAKRISHNAN, S/O.KRISHNAN NAIR, AKAVALAPPIL HOUSE, JAYA NIVAS, MANITHARA, AVANOOR P.O., VIA MUNDOOR, THRISSUR DISTRICT
  • C.K.MANOHARAN S/O.LATE KESAVAN, IV/656, CHAKKAMADATHIL HOUSE, VELAPPAYA P.O., THRISSUR-680 596. *(DIED)
  • P.UNNIKRISHNAN NAIR S/O.LATE AYYAPPAN NAIR, PERACHINGAYIL HOUSE, KONDAZHI P.O., THRISSUR.
  • ADDL.R4 MRS.VASANTHI W/O LATE MANOHARAN, IV/656, CHAKKAMADATHIL HOUSE, VALAPPAYA P.O., THRISSUR - 680596
  • ADDL.R5 MISS.SHIJI D/O LATE MANOHARAN, IV/656, CHAKKAMADATHIL HOUSE, VALAPPAYA P.O., THRISSUR - 680596

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.MATHEWS JACOB (SR.)
  • • P.JACOB MATHEW

Counsels for Respondents

  • • P.VIJAYA BHANU (SR.)
  • • T.C.SURESH MENON
  • • V.A.JOHNSON (VARIKKAPPALLIL)

Case Synopsis & Summary

This is an appeal under Section 30 of the Workmen’s Compensation Act, 1923, filed by Oriental Insurance Company Limited challenging an order of the Commissioner for Workmen’s Compensation, Thrissur, dated 04.05.2010, which awarded the claimant Rs.1,13,736 with 12% interest and costs for injuries sustained while employed as a conductor. The 2nd Opposite Party-insurer contends that liability to indemnify attaches only to the current owner of the bus; after the vehicle transfer to the 3rd respondent, the insurer argues it should not be liable to compensate the claimant. The court examines the interplay between the WCA and the Motor Vehicles Act, relying on Section 12 of the WCA and deeming provisions of Section 157 MV Act, as recognized by Mallamma (Dead) v. National Insurance Co. Ltd. and Others (2014) 14 SCC 137, which hold that the policy coverage can transfer to a new owner even if MV Act notification is not given. The argument also centers on the notional extension of employment, positing that the claimant’s scooter journey to hospital while discharging duties as a conductor falls within the course of employment, a view supported by several Supreme Court precedents including General Manager, B.E.S.T Undertaking, Agnes (AIR 1964 SC 193), Manju Sankar & Ors. v. Mabish Miah & Ors. (2014) 14 SCC 21, and Leela Bai & Anr. v. Seema Chouhan & Anr. (2019) 4 SCC 325. The court dismisses the appeal, upholding the WCC order and the insurer’s liability to indemnify.

Provisions of Law Cited

Section 30 of the Workmen’s Compensation Act, 1923Section 12 of the Workmen’s Compensation Act, 1923Section 157 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional extension of employment (entry and exit by time and space)
  • Deeming provisions under Section 157 MV Act applicable to Workmen’s Compensation Act claims
  • Notional extension principle as established in General Manager, B.E.S.T Undertaking, Bombay v. Mrs. Agnes (AIR 1964 SC 193)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant insurer contends that liability to indemnify is limited to the current owner of the vehicle. After the transfer of ownership, the insurer argues, the policy should not extend to the claimant who was employed by the earlier owner. It relies on the appellate contention that neither Section 12 of the Workmen’s Compensation Act nor the deeming provisions of the MV Act automatically encircle liability post-transfer, and cites the need for timely MV Act notice as a precondition for indemnity.

Contentions of Respondents

The claimant (1st respondent in MFA) argues that once ownership transfers, the existing insurance policy is deemed transferred to the new owner under Section 157 MV Act as applied to WCA claims, so the insurer remains liable. He also asserts that notional extension of employment makes his scooter journey to hospital during the course of employment, including transit outside the bus, part of the employer’s risk. The insurer’s challenge to the award is thus unfounded given the precedents recognizing deeming provisions and notional extension.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Mallamma (Dead) by LRs. v. National Insurance Co. Ltd. and Others[(2014) 14 SCC 137]PositiveDeeming provision under Section 157 MV Act applicable to WCA claims; policy coverage transfers to new owner; insurer liable.
General Manager, B.E.S.T Undertaking, Bombay v. Mrs. AgnesAIR 1964 SC 193PositiveNotional extension of employment – entry and exit by time and space.
Manju Sankar & Ors. v. Mabish Miah & Ors.[(2014) 14 SCC 21]PositiveNotional extension of employment followed in notional extension cases.
Leela Bai & Anr. v. Seema Chouhan & Anr.[(2019) 4 SCC 325]PositiveNotional extension of employment applied to extend course of employment.

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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 G.GIRISH ``` ``` TUESDAY, THE 9[TH] DAY OF APRIL 2024 / 20TH CHAITHRA, 1946 ``` # **`MFA (ECC) NO. 169 OF 2010`** ``` AGAINST THE ORDER DATED 04.05.2010 IN WCC NO.68 OF 2001 OF THE COMMISSIONER FOR WORKMEN’S COMPENSATION, THRISSUR ``` ## **`APPELLANT: 2[ND] OPPOSITE PARTY`** ``` THE ORIENTAL INSURANCE COMPANY LIMITED MATTANCHERY NOW REPRESENTED BY ITS ASSISTANT MANAGER, REGIONAL OFFICE, METRO PALACE, KOCHI-18. ``` ``` BY ADVS. SRI.MATHEWS JACOB (SR.) P.JACOB MATHEW ``` ``` RESPONDENTS: APPLICANT AND OPPOSITE PARTIES 1 AND 3 ``` ``` 1RADHAKRISHANAN, S/O.KRISHNAN NAIR, AKAVALAPPIL HOUSE, JAYA NIVAS, MANITHARA, AVANOOR P.O., VIA MUNDOOR, THRISSUR DISTRICT. ``` ``` *2C.K.MANOHARAN S/O.LATE KESAVAN, IV/656, CHAKKAMADATHIL HOUSE, VELAPPAYA P.O., THRISSUR-680 596. *(DIED) ``` ``` 3P.UNNIKRISHNAN NAIR S/O.LATE AYYAPPAN NAIR, PERACHINGAYIL HOUSE, KONDAZHI P.O., THRISSUR. ``` - **`**ADDL.R4 MRS.VASANTHI`** ``` W/O LATE MANOHARAN, IV/656, CHAKKAMADATHIL HOUSE, VALAPPAYA P.O., THRISSUR - 680596 ``` - **`**ADDL.R5 MISS.SHIJI`** ``` D/O LATE MANOHARAN, IV/656, CHAKKAMADATHIL HOUSE, VALAPPAYA P.O., THRISSUR - 680596 **[THE LEGAL REPRESENTATIVES OF THE DECEASED 2ND RESPONDENT ARE ``` 2 M.F.A.(ECC) No.169/2010 ``` IMPLEADED AS ADDITIONAL RESPONDENT NO.4 AND NO.5 AS PER ORDER DATED 01-04-2024 IN I.A.2/2011(I.A.NO.563/2011) IN MFA (ECC) 169/2010] ``` ``` BY ADVS. P.VIJAYA BHANU (SR.) T.C.SURESH MENON V.A.JOHNSON (VARIKKAPPALLIL) ``` ``` THIS MFA (ECC) HAVING COME UP FOR ADMISSION ON 05.04.2024, THE COURT ON 09.04.2024 DELIVERED THE FOLLOWING: ``` 3 M.F.A.(ECC) No.169/2010 **G.GIRISH, J.** **--------------M.F.A (ECC) No.169 of 2010** **-----------------------------Dated this the 9[th] day of April, 2024** **-------------------------------------------------** **J U D G M E N T** The 2[nd] Opposite Party in W.C.C.No.68 of 2009 of the court of the Commissioner for Workmen’s Compensation (Deputy Labour Commissioner), Thrissur, has filed this appeal under Section 30 of the Workmen’s Compensation Act, 1923 challenging the order dated 04.05.2010 of the said authority awarding a compensation of Rs.1,13,736/- with interest and costs to the applicant (claimant) therein. 2. The 1[st] respondent in this appeal (applicant in WCC No.68 of 2009), who was a Conductor in the bus which belonged to the 2[nd] respondent, suffered chest pain at 4.30 p.m on 09.10.2000 during the course of his employment. He took a Scooter and proceeded to consult a Doctor at Medical College Hospital. During the course of the above journey, he met with an accident and suffered multiple injuries. He claimed compensation before the Court of the Commissioner 4 M.F.A.(ECC) No.169/2010 for Workmen’s Compensation in respect of the above injuries sustained in the said accident. The learned Commissioner for Workmen’s Compensation, after evaluation of the evidence adduced by the claimant through the oral testimonies of AW1 and AW2 and the documents marked as Exts.A1 to A5, and the oral testimony of MW1 and the documents marked as Exts.M1 and M2 and the medical report marked as Ext.X1, held that the claimant was entitled for an amount of Rs.1,13,736/- as compensation. The above amount was ordered to be paid with interest @ 12% per annum. It is aggrieved by the above order of the Commissioner for Workmen’s Compensation that the present appeal has been preferred by the Insurance Company which was the 2[nd] opposite party in the aforesaid W.C.C. 3. The 2[nd] respondent in this appeal who was the earlier owner of the bus where the 1[st] respondent had been working, died during the pendency of this appeal. The additional respondents 4 and 5 were impleaded as the legal representatives of the deceased 2[nd] respondent. The respondents were represented through their respective 5 M.F.A.(ECC) No.169/2010 counsel. 4. Heard both sides. 5. The substantial question of law raised by the appellant is the liability of the insurance company to indemnify a subsequent owner of the bus, and also the entitlement of the 1[st] respondent to have compensation for the injury sustained in an accident while outside the bus where he had been working. 6. Admittedly, the 2[nd] respondent was the owner of the bus at the time of appointment of the 1[st] respondent as Conductor in that bus. The abovesaid bus is said to have been transferred to the 3[rd] respondent who was the owner of the bus at the time of accident. The strange argument advanced by the appellant Insurance Company is that they are bound to indemnify only the 3[rd] respondent who is the present owner of the bus, and that the 1[st] respondent cannot claim any amount as compensation since the employeremployee relationship was between the 2[nd] respondent and the 1[st] respondent. There is absolutely no basis for the above argument advanced by the appellant in the light of the 6 M.F.A.(ECC) No.169/2010 principles contained in Section 12 of the Workmen’s Compensation Act, 1923 and Section 157 of the Motor Vehicles Act, 1988. The Apex Court has held in **Mallamma** **(Dead) by L.rs. v. National Insurance Co. Ltd. and** **Others [(2014) 14 SCC 137]** that the deeming provision under Section 157 of the Motor Vehicles Act would be applicable to a claim under Workmen’s Compensation Act as well. It has been further observed in the aforesaid decision that once the ownership of the vehicle is admittedly proved to have been transferred, the existing insurance policy in respect of the same vehicle will also be deemed to have been transferred to the new owner, and the policy will not lapse even if the intimation as required under Section 103 of the MV Act, is not given to the insurer. Therefore, the question of law in the above regard is already settled, and hence the appellant cannot succeed in the challenge raised against the impugned order of the Commissioner for Workmen’s Compensation, upon the above ground. 7. Another argument advanced by the learned counsel for the appellant is that the 1[st] respondent cannot be 7 M.F.A.(ECC) No.169/2010 said to have sustained injuries in an accident occurred while discharging his duty as a Conductor in the bus belonging to the 3[rd] respondent. According to the appellant, the accident occurred while the 1[st] respondent was riding a scooter, which was beyond the scope of notional extension of employment. Here also, it is not possible to accept the argument advanced by the learned counsel for the appellant. The impugned order would reveal that the said authority has rightly appreciated the evidence tendered by the 1[st] respondent that he had to step out of the bus on 09.10.2000 during the course of employment and to proceed to the hospital in a scooter since he felt chest pain while working in that bus. The 1[st] respondent is also seen to have tendered statement before the Commissioner that the accident occurred since a cycle rider jumped in front of his scooter while he was on the way to hospital, after alighting from the bus, where he was working. Evaluating the above evidence, the learned Commissioner for Workmen’s Compensation has rightly observed in the impugned order that the accident occurred and the 1[st] respondent sustained injuries while discharging 8 M.F.A.(ECC) No.169/2010 his duty as a Conductor in the vehicle with Registration No.KL8 D/7299. There is absolutely no illegality or impropriety in the above finding of the Commissioner. The principle of notional extension of employment would clearly bring the accident suffered by the 1[st] respondent on 09.10.2000 as one happened during the course of his employment in the bus belonging to the 3[rd] respondent. If an employee gets indisposed during the course of his work at the establishment of his employer, and proceeds to the hospital for medical aid, the above transit from the place of employment to the hospital and vice versa, would clearly come within the purview of the course of employment. Therefore, the challenge raised by the appellant in this regard is devoid of merit. The principle of notional extension of employment has been applied by the Apex Court in the celebrated decision in **General Manager, B.E.S.T Undertaking, Bombay v. Mrs.Agnes [AIR 1964 SC 193]** wherein it has been held that there is a notional extension at both the entry and exit by time and space, and that the scope of such extension must necessarily depend on the 9 M.F.A.(ECC) No.169/2010 circumstances of a given case. The principle of law in the above regard has been followed by the Apex Court in **Manju** ## **Sankar & Ors. v. Mabish Miah & Ors. [(2014) 14 SCC** **21]** and **Leela Bai & Anr. v. Seema Chouhan & Anr.** **[(2019) 4 SCC 325]** . Applying the ratio laid down by the Apex Court in the aforesaid decisions to the case on hand, the accident suffered by the 1[st] respondent while travelling in a scooter to the hospital, seeking medical aid for the chest pain suffered during the course of his employment as Conductor in the bus belonging to the 3[rd] respondent, would clearly come within the purview of notional extension of employment. In that view of the matter, the challenge raised by the appellant against the impugned order of the Commissioner for Workmen’s Compensation, is totally unsustainable. In the result, the appeal is hereby dismissed. Sd/- ## **G.GIRISH, JUDGE** jsr/vgd