ESI CORPORATION Vs. KRISHNASWAMY GOWDER

JUDGEMENT

(1.) The Employees' State Insurance Corporation, Trichur has preferred this appeal against, the decision of the Subordinate Judge, Parur dismissing the suit O.S. No. 62 of 1969 which the Corporation had instituted against the respondents herein for the recovery of an amount of Rs. 16,766.75 from them by way of indemnification under S.67 of the Employees' State Insurance Act, 1948 (hereinafter referred to as the Act). The suit was dismissed by the court below on the ground that the civil court had no jurisdiction to entertain and try the suit. The correctness of the said view is called in question in this appeal.

(2.) The Mathrubhumi Printing and Publishing Co., Ltd. is a factory covered under the Act. An autorickshaw bearing registration No. K.L.D. 4902 belonging to the said company which was being used for delivery and distribution of the Mathrubhumi daily newspaper was involved in a road accident on 27th October 1966 at a place called Desom near Alwaye at about 4.30 a.m. A lorry bearing registration No. M.D.E. 9454 owned by the 1st defendant (1st respondent) which was being driven by the 2nd defendant (second respondent) collided with autorickshaw and as a result thereof the driver of the autorickshaw -- Raman Nair -- was killed on the spot. According to the plaintiff appellant -- the accident had occurred as a result of the rash and negligent act of the driver of the lorry and consequently the 1st defendant is legally liable to pay compensation for the death of Raman Nair. Inasmuch as the fatal injury was suffered by Raman Nair during the course of and arising out of the employment under the insured company the Corporation became statutorily bound to compensate the dependants of the deceased under the Act and accordingly it has been making periodical payments to the defendants as prescribed in the Act and the Rules after assessing the total compensation amount on the basis of the wages that were being received by the deceased at the time of the accident. The Corporation contended in the suit that under S.67 of the Act it is entitled to be indemnified by defendants Nos. 1 and 2 who are the persons legally liable to pay compensation or damages under the law for the fatal injury sustained by deceased Raman Nair.