Principal employer not liable for penalty on compensation delay: Bombay HC
The Bombay High Court recently clarified the contractor's employer's responsibility in the event of an accidental death or injury.
Principal employer not liable for penalty on compensation delay, Bombay HC held in a recent judgement.
The principal employer is not liable for penalties for any occupational death compensation delays. The Bombay High Court recently clarified the contractor’s employer’s responsibility in the event of an accidental death or injury.
The court determined that the primary employer’s responsibility is limited to providing remuneration in accordance with Section 12 of the Employee remuneration Act. It specifies that any penalty or interest for late payment is not included in the major employer’s liability in such instances.
The Court observed, “…for failure to comply with statutory obligation on the part of the employer he can be saddled with additional liability to pay interest and penalty, however the principal employer, who is made liable to pay compensation by extended arm under Section 12 of the Employee’s Compensation Act cannot be mulcted with the liability to pay the interest and penalty.”
The case began with the death of Rafique Khalifa, a driver on a water tanker owned by Kadarkhan Kasamkhan Pathan. During the summer of 2013, the appellants entered into an agreement with a motor company (contractor) to offer water supply. In turn, the contractor hired Pathan’s water tanker to complete the contract. Rafique died on April 23, 2013, after suffering a heart collapse while doing his duties as a driver.
Following the incident, the deceased’s family claimed that his continuous 24-hour duty caused substantial emotional and physical strain, ultimately leading to his heart attack and death.
However, the appellants refused to accept responsibility, claiming that the contractor was solely responsible for the employees or any individuals working in the water supply vehicle. They claimed that Rafique and they did not have an employer-employee relationship.
The court determines that driving a tanker to distribute water to villages is a physically and emotionally demanding work. The court, led by Justice SG Chapal Gaonkar, affirmed the payment of over Rs 6 lakhs to the family of a dead driver who died of a heart collapse while on duty.
Furthermore, the commissioner for employee compensation ordered that the appellants jointly and individually pay Rs. 6,39,000 to the deceased’s family, plus an annual interest rate of 12%.
In addition, they were told to pay a penalty equal to half of their pay, in accordance with Section 4-A (2) (b) of the Employees’ Compensation Act.
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