Roadside Death Outside Work: Orissa HC Says ESI Bar Doesn’t Block Family’s Third-Party Claim, Cuts Award To ₹19.5 Lakh

Debashis Muduli, an employee of M/s. Jyoti Motors Pvt. Ltd. in respect of whom contributions had been made under the Employees’ State Insurance Act, 1948 (“ESI Act”), was killed when a truck struck him while he was standing on the Cuttack–Bhubaneswar road at about 9 p.m.

His legal representatives brought a claim under Section 166 of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal awarded Rs. 22,14,448 with 6% annual interest from the date of filing the claim.

The insurer appealed, challenging both the claim’s maintainability under the ESI Act and the compensation amount.

Section 2(8) of the ESI Act defines an “employment injury” as an injury caused by an accident arising out of and in the course of employment; Section 2(14) defines an “insured person” by reference to contributions payable and entitlement to ESI benefits.

Section 53 bars recovery of compensation or damages under other laws in respect of an employment injury sustained by an insured person, while Section 61 bars receipt of a similar benefit under another enactment where a person is entitled to ESI benefits.

The claim was brought under Section 166 of the Motor Vehicles Act, with the appeal under Section 173(1).

On compensation, the Court also took guidance from *Taslim Parvin & Another v. (Smt.) Usha Devi & Another*, 2018(2) TAC 22 (SC).

The Court held that the ESI bars were inapplicable because they concern an employment injury arising out of and in the course of employment. The deceased was standing on a public road at night, and the offending truck had no connection with his employer; therefore, his death was not an employment injury for purposes of Sections 53 and 61, and the dependants could pursue a third-party claim.

On quantum, the Court upheld the Tribunal’s monthly income finding of Rs. 14,016, based on salary records, but accepted that the Tribunal had applied 50% future prospects and a multiplier of 17 instead of 40% and 16, respectively. Following discussion with counsel, the Court proposed compensation of Rs. 19,50,000; the claimants accepted and the insurer left the matter to the Court’s discretion.

It reduced the award to Rs. 19,50,000, with simple interest at 6% per annum from 2 August 2019 until realization, and directed the insurer to pay within eight weeks.

The amount is to be disbursed proportionately under the Tribunal’s award; the statutory deposit and accrued interest are to be refunded upon proof of deposit of the modified compensation.