Chhattisgarh High Court

### Scope of Appellate Intervention and Liability in Employees’ Compensation Claims Finding of fact regarding employer-employee relationship cannot be interfered with absent perversity or lack of evidence.

Branch Manager, The National Insurance Company Limited v. Smt. Pramila Thakur & Anr. [2026:CGHC:11598; MAC No. 790 of 2022]

Chhattisgarh High Court2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent (claimant) filed a claim under Section 22 of the Employees’ Compensation Act, 1923, following the death of her son, Ravindra Thakur, in a vehicular accident on February 3, 2012.

Source reference: para 2

The deceased was allegedly employed as a driver by Respondent No. 2 (owner) and died when his Maruti Omni was hit by an unknown truck.

Source reference: para 2

The Insurance Company contested the claim, denying the employer-employee relationship and alleging a breach of policy conditions because the vehicle was purportedly used for "hire and reward".

Source reference: para 3

The Commissioner, Employees’ Compensation-cum-Labour Court, Rajnandgaon, awarded Rs. 8,61,120/- with interest to the claimant on April 5, 2022.

Source reference: para 1

The Appellant-Insurance Company challenged this award before the High Court of Chhattisgarh.

Source reference: para 4
02

Issues

1. Whether the Commissioner erred in finding an employer-employee relationship between the deceased and the insured owner.

Source reference: para 5

2. Whether the Insurance Company established a breach of policy conditions regarding the use of the vehicle for hire and reward to escape liability.

Source reference: para 7

3. Whether the High Court can interfere with the Commissioner's findings of fact under Section 30 of the Employees’ Compensation Act.

Source reference: para 11
03

Law Applied

The court primarily applied Section 30 of the Employees’ Compensation Act, 1923, which restricts appeals to "substantial questions of law" only.

Source reference: para 1, 11

It relied on the precedent set in North East Karnataka Road Transport Corporation v. Sujatha (2019) and Golla Rajanna v. Divisional Manager (2017), which establish that findings of fact by the Commissioner cannot be interfered with unless they are perverse, arbitrary, or based on no evidence.

Source reference: para 11

Additionally, the court applied Section 4 of the Act for the calculation of compensation based on age and wages.

Source reference: para 10
04

Reasoning

The Court observed that the claimant provided specific pleadings and oral testimony regarding the employment of the deceased, which the Commissioner duly appreciated.

Source reference: para 8

Since the vehicle owner was ex parte, the evidence regarding employment remained unrebutted.

Source reference: para 10

Regarding the "hire and reward" allegation, the Court found that the Insurance Company failed to provide cogent or reliable evidence to substantiate a policy breach; mere suggestions in cross-examination or references to the FIR were insufficient for conclusive proof.

Source reference: para 9

The Court reasoned that since the Commissioner's findings were supported by the record and the compensation was calculated strictly per Section 4, there was no perversity or jurisdictional error.

Source reference: para 10, 12
05

Holding

The High Court dismissed the appeal, holding that the findings of the Commissioner were findings of fact based on proper appreciation of evidence.

The Court answered that no substantial question of law arose for consideration as the appellant failed to prove a breach of policy or perversity in the lower court's findings.

Source reference: para 12

The interim order was vacated, and the award of Rs. 8,61,120/- plus interest was upheld.

Source reference: para 13, 14
Chhattisgarh High Court

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Branch Manager, The National Insurance Company Limited v. Smt. Pramila Thakur & Anr. [2026:CGHC:11598; MAC No. 790 of 2022]

Chhattisgarh High Court

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