National Insurance Company Ltd., Lko. Thru. Regional Manager vs Smt. Shiv Rani and Another

The instant first appeal from order has been filed under Section 30 of the Employees' Compensation Act, 1923 against the judgment and award dated 17.09.2025 passed in ECA Case No.44 of 2020 'Smt. Shivrani versus Agarwal Brothers and another' passed by Workmen Compensation Commissioner Evam Assistant Labour Commissioner, Lucknow, which awarded claim of Rs.15,12,450/- against the appellant.

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Learned counsel for the appellant submits that the learned Workmen Compensation Commissioner and Assistant Labour Commissioner, Lucknow, erred in law by passing impugned judgment and order dated 17.09.2025. The Commissioner framed issue no.1 regarding the existence of an employer-employee relationship to determine who would be liable to pay compensation. However, the findings themselves indicate that no such relationship existed between the Insured, Agarwal Brothers and the deceased, namely, late Amar Singh. Despite this, the Insured, in collision with the deceased's family members, falsely asserted that the deceased was employed by them and was being paid a salary of Rs.20,000/- per month. The learned Commissioner has relied upon this statement without any documentary evidence.

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He next submits that the Driving License of the deceased authorized him to drive only a Light Motor Vehicle, whereas at the time of the accident, he was operating a Road Roller, which falls under the category of heavy commercial vehicle and requires a transport license. Therefore,

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FAFO No. 502 of 2025

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2

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the question of granting compensation to the deceased, who was driving without a full license for the said vehicle, does not arise. The impugned judgment is thus contrary to the law settled by the Honorable Apex Court in this regard. The learned Commissioner failed to appreciate that the employees engaged by the Insured were authorized only to perform road making work using thermoplastic paint on the road and hence, there was no scope or requirement for operating a Road Roller at the said site. Even assuming the relationship of employee and employer, the alleged involvement of the deceased as a Road Roller Operator was entirely beyond the scope of the authorized work, and as such, no liability can be fastened upon the insurer for an act outside the terms of the insurance contract and nature of approved work.

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Learned counsel has lastly submitted that the recovery proceedings may kindly be stayed as the appellant has already deposited the awarded amount and a certificate in this regard issued by the Workmen Compensation Commissioner-cum-Assistant Labour Commissioner, Lucknow, dated 13.11.2025 has been filed in this regard, which reveals that the total Rs.23,59,605/- has been deposited with the office of the Employees Compensation Commissioner.

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Matter requires consideration.

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Admit.

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Summon the trial court record.

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Issue notice to respondents through the District Judge concerned.

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Steps be taken within a week.

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List on 19.01.2026.

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As the awarded amount has already been deposited with the office of the Commissioner as stated above, the recovery/ execution proceedings shall remain stayed, until further orders.

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(Ram Manohar Narayan Mishra,J.)

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November 20, 2025/ Mohd. Sharif

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Digitally signed by :- MOHAMMAD SHARIF High Court of Judicature at Allahabad, Lucknow Bench

National Insurance Company Ltd., Lko. Thru. Regional Manager v. Smt. Shiv Rani and Another

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National Insurance Company Ltd., Lko. Thru. Regional Manager v. Smt. Shiv Rani and Another

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