Delhi High Court

Commissioner may draw legitimate inferences from probabilities to establish employment where direct documentary evidence is absent.

Regional Manager, M/S. Bajaj Allianz General Ins. Co. Ltd. vs Sunita Devi & Ors.

Delhi High CourtJUDGMENT: May 25, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

Respondent Nos. 1 and 2 (claimants) filed a claim petition under the Employee’s Compensation Act, 1923, asserting that the deceased, Chandeshwar Ray, was employed as a driver on a truck (HR-55H-8581) owned by Respondent No. 3

Source reference: p. 1-2

On March 26, 2011, the vehicle met with an accident during an occupational trip, leading to the deceased’s death on June 11, 2011

Source reference: p. 2

The Appellant (Insurance Company) contested the award, while the owner (Respondent No. 3) denied the employment of the deceased, claiming one Pappu Singh was the driver at the time of the accident

Source reference: p. 2-3

The Commissioner, Employee’s Compensation, allowed the claim, directing the Appellant to pay Rs. 8,60,664 with 12% interest

Source reference: p. 2

The Appellant challenged this order before the High Court under Section 30 of the EC Act, arguing the judgment was perverse as criminal records identified Pappu Singh as the driver

Source reference: p. 3
02

Issues

Whether the findings of the Commissioner regarding the employer-employee relationship were perverse or lacked evidence under Section 30 of the EC Act

Source reference: p. 3 / para. 7

Whether the Commissioner was justified in relying on the preponderance of probabilities to establish employment in the absence of direct documentary evidence

Source reference: p. 3-4 / para. 10
03

Law Applied

The Court primarily applied Section 30 of the Employee’s Compensation Act, 1923, which limits appeals to "substantial questions of law"

Source reference: p. 3

It relied on the principle that the EC Act is beneficial legislation where strict rules of evidence do not apply as rigorously as in criminal trials

Source reference: p. 4

The Court followed the precedent in Macainnon Mackenzie and Co. (P) Ltd. v. Ibrahim Mahmmed Issak, which held that a workman need not prove a case by direct evidence and the Commissioner may draw legitimate inferences from proved facts

Source reference: p. 4-5

Additionally, it cited North East Karnataka Road Transport Corporation v. Sujatha, affirming that findings of fact by a Commissioner should not be lightly interfered with unless perverse

Source reference: p. 5-6
04

Reasoning

The Court observed that while the owner denied the deceased's employment, neither party produced conclusive documentary evidence of engagement for either the deceased or Pappu Singh

Source reference: para. 9

The Court noted that in the criminal proceedings against Pappu Singh, eye-witnesses failed to support the prosecution, and none claimed to have seen him at the spot

Source reference: para. 11

Consequently, the Commissioner had to weigh competing versions—the claimants’ medical and mechanical reports versus the owner’s criminal case records

Source reference: para. 9

Applying the "touchstone of preponderance of probabilities," the Court found the Commissioner's inference legitimate, as the accident was undisputed and the criminal trial against the alternative driver had collapsed

Source reference: para. 10-13

The Court held that since the Commissioner is the final authority on facts, and the inferences drawn were reasonable based on the surrounding circumstances, there was no ground for interference

Source reference: para. 12-15
05

Holding

The High Court dismissed the appeal, holding that there was no infirmity or perversity in the Commissioner’s order

The Court affirmed the award of Rs. 8,60,664 with interest @ 12% per annum, concluding that the Commissioner is entitled to draw reasonable inferences in beneficial legislation proceedings when facts are not equally consistent

Source reference: para. 13-16
Delhi High Court

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Regional Manager, M/S. Bajaj Allianz General Ins. Co. Ltd.vsSunita Devi & Ors.

Delhi High Court · May 25, 2026

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