DAIVSHALA Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) Shahu Sampatrao Jadhavar was employed as a watchman in the Respondent no. 2-Sugar Factory. His duty hours were from early morning 3 am to 11 am. On 22/4/2003, he left home on his Motorcycle to report for duty. However, unfortunately, he never reached his place of work. When he was 5 kms away from the factory, his motorcycle was involved in a fatal accident. He left a large family behind. A widow, four children and his mother.

(2.) In a claim filed under the Employees' Compensation Act, 1923 (hereinafter the 'EC Act') the employer and the insurance company set up the defence that the accident had not arisen out of or in the course of his employment, since the accident occurred outside the precincts of the factory. Overruling the same, the Commissioner for Workmen's Compensation and Civil Judge, Senior Division, Osmanabad awarded a sum of Rs.3,26,140.00 along with interest @ 12 per cent per annum from 22/5/2003 to the family members. The Insurance Company was directed to deposit the amount since there was a valid Insurance Policy. The employer was asked to pay 50 per cent of the awarded amount as penalty. The employer and the Insurance Company were directed to pay the amount of penalty and the awarded compensation within one month from the date of the order.

(3.) Aggrieved, the Insurance Company filed First Appeal No.2015 of 2011 before the High Court of Judicature of Bombay, Bench at Aurangabad. The High Court has reversed the findings of the Commissioner and set aside the order holding that since the deceased was on his way to his employment, the accident cannot be said to have its origin in the employment. The aggrieved family members are in appeal by way of special leave.