Karnataka High Court
Divisional Manager vs Smt. Laxmi And Ors on 20 January, 2025
-1-
NC: 2025:KHC-K:311
MFA No. 201508 of 2019
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 20TH DAY OF JANUARY, 2025
BEFORE
THE HON'BLE MR. JUSTICE C M JOSHI
MISC. FIRST APPEAL NO.201508 OF 2019 (WC)
BETWEEN:
DIVISIONAL MANAGER,
NATIONAL INSURANCE COMPANY LTD.,
BILGUNDI MANSION,
OPP. MINI VIDHANA SOUDHA, KALABURAGI,
NOW THROUGH AUTHORIZED SIGNATORY,
THE DIVISIONAL MANAGER,
NATIONAL INSURANCE CO. LTD.,
1ST FLOOR, BILGUNDI COMPLEX,
OPP. MINI VIDHANA SOUDHA,
KALABURAGI,
NOW THROUGH AUTHORIZED SIGNATORY
...APPELLANT
Digitally (BY SRI. SHARANABASAPPA M. PATIL, ADVOCATE)
signed by
LUCYGRACE
LUCYGRACE Date:
2025.01.22
09:07:05 - AND:
0800
1. SMT. LAXMI W/O LATE NAGAYYA,
AGE: 28 YEARS, OCC: HOUSEHOLD.
2. KUM. BHAGYASHREE D/O LATE NAGAYYA,
AGE: 15 YEARS, OCC: STUDENT MINOR.
3. SHIVAKUMAR S/O LATE NAGAYYA,
AGE: 13 YEARS, OCC: STUDENT MINOR.
4. SAIKUMAR S/O LATE NAGAYYA,
AGE: 08 YEARS, OCC: NIL MINOR.
-2-
NC: 2025:KHC-K:311
MFA No. 201508 of 2019
5. FAKIRAYYA S/O CHANDAYYA,
AGE: 72 YEARS, OCC: NIL,
RESPONDENTS NO.2 TO 4 ARE MINORS OF THEIR
NATURAL MOTHER RESPONDENT NO.1,
ALL RESPONDENTS R/O BHIMALLI VILLAGE,
TQ. AND DIST. KALABURAGI-585 316.
6. M/S. RAMALINGAMMA CONSTRUCTION
CO. PVT. LTD.,
ENGINEERING CONTRACTORS NO.175/2,
SOUTH STATE BANK NAGAR, CHETTIPALAYAM,
MOOLA PALAYAM, ERODE-2,
DIST. EROSE, TAMIL NADU-638 316.
...RESPONDENTS
(BY SRI.SHARANABASAPPA K. BABSHETTY, ADV. FOR R1TOR5;
(R2 TO R4 ARE MINORS, U/G FOR R1);
NOTICE TO R6 - SERVED)
THIS MFA IS FILED UNDER SECTION 30 (1) OF THE
E.C.A. ACT, PRAYING TO MODIFY THE JUDGMENT DATED
14.01.2019 AND AWARD DATED 23.01.2019 IN
ECA.NO.14/2017 BEFORE THE IST ADDL. SENIOR CIVIL JUDGE
AND COMMISSIONER FOR EMPLOYEES COMPENSATION AT
KALABURAGI.
THIS APPEAL, COMING ON FOR FINAL HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE C M JOSHI
-3-
NC: 2025:KHC-K:311
MFA No. 201508 of 2019
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE C M JOSHI) Heard the learned counsel appearing for the appellant. None appears for the respondents No.1 to 5. Respondent No.6 served with the notice, but unrepresented.
02. The respondents No.1 to 5 are the claimants before the I Additional Senior Civil Judge and Commissioner for Employee's Compensation, at Kalaburagi in ECA.No.14/2017. By judgment dated 14.01.2019 the Commissioner has awarded a compensation of Rs.8,15,400/- and saddled the liability upon the respondent No.2 - Insurance Company.
03. The respondent No.2 - insurance company contended that the liability of the insurance company was only to the tune of Rs.3,00,000/- per employee / per worker. Contending so, the insurance company is before this Court in this appeal.
-4-
NC: 2025:KHC-K:311 MFA No. 201508 of 2019
04. The petitioners before the Commissioner were the dependents of the deceased - Nagayya who while erecting the electric pole suffered an injury due to the fall of the pole and died. The respondent No.1 before the Commissioner had obtained a group workmen insurance policy, which is produced at Ex.R.1, wherein the accidental death cover for each worker was limited to Rs.3,00,000/-.
05. The learned counsel appearing for the appellant would submit that though the Commissioner notes that it is a policy for the workmen group insurance policy, it failed to notice the limits of liability. Therefore, the compensation awarded in excess of a sum of Rs.3,00,000/- has to be paid by the employer.
06. This Court has framed the following substantial question of law by an order dated 07.02.2024:-
"When the Insurance Policy covers only Rs.3 Lakhs to that extent and whether the Court below justified in awarding in excess award amount.?"-5-
NC: 2025:KHC-K:311 MFA No. 201508 of 2019
07. Though, notice was issued to the employer, who is the respondent No.6 herein, he did not appear. The respondents No.1 to 5 have appeared through their learned counsel. The records before the Commissioner have been secured and perused.
08. It is very clear from the perusal of Ex.R.1 that the appellant is liable to pay a sum of Rs.3,00,000/- in case of death of an employee and the liability is limited to the such some only. Though, policy covers 60 workers involved in various projects undertaken by the respondent No.6, its liability for each of the worker is Rs.3,00,000/- only.
09. It is pertinent to note that like the motor vehicle accident policies, the policy does not cover any statutory liability. There is no statutory liability under the policy for the insurance company to satisfy the entire claim that could arise under the policy. The same view is -6- NC: 2025:KHC-K:311 MFA No. 201508 of 2019 considered in the judgment of the Hon'ble Apex Court in the case of New India Assurance Company Limited vs. Harshadbhai Amrutbai Modhiya1. Therefore, the terms of the policy being contractual in nature between the insurance company and the respondent No.6, the Commissioner has clearly erred in saddling the entire liability upon the insurance company. The Commissioner could not have traversed beyond the scope of the policy, since there being no power for him under the provisions of the E.C. Act. Therefore, the liability of the appellant herein is only to the extent of Rs.3,00,000/- from which he is liable to satisfy the claim of the petitioner. The rest of the compensation amount determined by the learned Commissioner including the interest thereon is liable to be satisfied by the respondent No.6, who is the employer. Hence, the appeal succeeds. Accordingly, the following; 1 2006 (5) SCC 192 -7- NC: 2025:KHC-K:311 MFA No. 201508 of 2019 ORDER I. The appeal is allowed.
II. The appellant - insurance company is liable to pay a sum of Rs.3,00,000/- only to the respondents No.1 to 5.
III. The rest of the amount awarded by the learned Commissioner, including the interest is ordered to be paid by the respondent No.6 to respondents No.1 to
5. IV. The excess amount deposited by the appellant before the Commissioner is ordered to be refunded to the appellant - insurance company.
Sd/-
(C M JOSHI) JUDGE KJJ List No.: 1 Sl No.: 77 CT: AK