Employee Compensation Act; First Appeal; Employer-employee relationship; Father-son employment; Insurance liability; Accident claim; Bombay High Court; Workmen's Compensation
 15 Apr, 2026
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The New India Assurance Co. Ltd. Vs. Dineshkumar J. Dubey & Anr.

  Bombay High Court FIRST APPEAL NO.1760 OF 2009
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Case Background

As per case facts, the applicant, a driver, met with an accident in the course of his employment. He sustained injuries that left him unable to continue his occupation, leading ...

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Document Text Version

27-fa-1760-2009.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

FIRST APPEAL NO.1760 OF 2009                

The New India Assurance Co. Ltd. ]

Jeevan Seva, 2

nd

 Floor, S. V. Road,  ]

Santacruz (W), Mumbai 400 054. ]  .. Appellant.

v/s.

1 Dineshkumar J. Dubey ]

residing at R. B. Yadav Chawl ]

Shivaji Vallabh Cross Road,  ]

New Ashokvan Ravalpada ]

Dahisar (E), Mumbai. ]

2 Jeelajeet B. Dubey ]

Laxmibai Ramprasad Mishra ]

Compound, Kokani Pada, Shiv  ]

Vallabh Cross Road, Dahisar (E), ]

Mumbai 400 068. ]  .. Respondents.

Mr. S. M. Dange, for the Appellant.

Mr. T. J. Mendon, for Respondent No.1

CORAM:  FIRDOSH P. POONIWALLA,J.

      RESERVED ON    :  20

th

 NOVEMBER, 2025.

PRONOUNCED ON    :  15

th

 APRIL, 2026.

      

JUDGEMENT:-

The present First Appeal is filed under Section 30 of the 

Employee’s Compensation Act, 1923 (hereinafter referred to as “the Act”), 

impugning the Judgement and Order dated 28

th

 February, 2007 passed by 

the Commissioner for Workmen’s Compensation and Judge, 6

th

  Labour 

Court, Mumbai in Application No. A (WCA) 644/ C-226/2003, allowing 

the Application.

S.R.JOSHI 1 of 20

SMITA

RAJNIKANT

JOSHI

Digitally signed

by SMITA

RAJNIKANT

JOSHI

Date:

2026.04.15

15:02:09

+0530

27-fa-1760-2009.doc

2 In this Judgement, the parties will be referred to as per their 

description in the Original Application.

FACTS:-

3 The   Applicant   had   filed   the   Application   for   getting 

compensation of an amount of Rs.5,20,584/- with interest and penalty 

from the Opposite Party and the Insurance Company.  

4 The Applicant’s case is as  under:-

(a) The Opposite Party is the owner of a vehicle bearing No. MH-02-    

QA-5370.  The Opposite Party appointed the Applicant as a driver 

of the said vehicle and used to pay wages of Rs.4,000/- per  

month to him.

(b) The Applicant met with an accident in the course of employment 

with the Opposite Party on the highway road near Times of India 

signal  on 13

th

 August, 2002. He sustained the following injuries:-

“(a) #(Lt) Fibula

(b) #   Lat.   Mallcola   with   Medical   side   ligament 

injury with unstable ankle.

(c) ORIF with 9hole 1/3rd Tabular plate with 4mm 

CC screw as syndemotic screw and BG from upper 

end.”

(hereinafter referred to as “the said injuries”).

(c) The Applicant was admitted to Bhagwati Hospital on 13

th

 August, 

2002. He was discharged from the hospital on 3

rd

 September, 2002. 

S.R.JOSHI 2 of 20

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Due to the said injuries, the Applicant is not in a position to 

continue his occupation as a driver. He has lost his earning capacity. 

Therefore, he is entitled to receive compensation of Rs.5,20,584/- 

from the Opposite Party and the Insurance Company.

5 The Opposite Party filed a Written Statement  at Exh. “C-3”. 

The Opposite Party admitted that he was the owner of the vehicle bearing 

No. MH-02-QA-5370. He admitted that he had employed the Applicant as 

a driver. He further submitted that he used to pay wages at Rs.4,000/- per 

month to the Applicant. He admitted that the Applicant met with an 

accident in the course of and arising out of the employment with the 

Opposite Party on 13

th

 August, 2002. The Opposite Party stated that the 

said vehicle was insured with the Insurer. Hence, he prayed that the 

Insurance Company be directed to pay the compensation, if any. 

6 The Insurance Company contested the Application by filing a 

Written Statement at Exh. “CA-4”. The Insurer stated that the Applicant is 

not a workman.  The Insurer further stated that there was no employer- 

employee relationship between the Applicant and the Opposite Party.  The 

Insurer denied that the accident occurred in the course of, and arising out 

of, the employment with the Opposite Party. The Insurer denied that the 

S.R.JOSHI 3 of 20

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Applicant was getting wages of Rs.4,000/- per month. Finally, the Insurer 

denied   that   the   Applicant   is   entitled   to   receive   an   amount   of 

Rs.5,20,584/- with interest and penalty from the Insurer.

7 Considering the pleadings of the parties, the following are the 

Issues framed by the Commissioner and his findings thereon:-

Issues Findings

1. Does applicant proved that he

sustained injuries in an accident

arising out of and in the course of

employment with opp. Party from

13.8.2002?

Proved

2. Does applicant proved that he is

entitled for the compensation? If yes,

what extend?

As per the final order

2. What Order? As per the final order.

8 Before   the   Commissioner,   the   Applicant   has   examined 

himself.   The   Applicant   also   examined   Dr.   Azgaonkar.   The   Applicant 

produced the certified copies of the police statement, medical case papers 

and the follow up card of Bhagwati Hospital from September, 2002 to 

March,   2003,   disability   certificate,   Insurance   Policy,   Tax   Certificate, 

Driving License, Copy of the W.C. Claim Form and the Wage Certificate. 

Both the Opposite Party and the Insurer did not give any evidence.

9 By a Judgement and Order dated 28

th

  February, 2007, the 

S.R.JOSHI 4 of 20

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Commissioner passed the following order:-

“ ORDER

1. Application is allowed.

2. Opp. Party and Insurer who are jointly and severally 

liable are directed to deposit a sum of Rs.5,20,584/- with 

interest at the rate of 12% on it from the date of present 

order till the date of realization within a period of 2 months 

from today.

3. No order as to the costs.”

QUESTIONS OF LAW:-

10 By an Order dated 18

th

 February, 2010 passed by this Court, 

the present First Appeal was admitted on the substantial questions of law 

as contained in paragraph Nos. 5, 6 and 7 of the Appeal Memo, which are 

as under:-

“5 The entire evidence regarding employment of 

Applicant was bogus and unreliable.  Hence the Ld. 

Judge ought to have rejected it.

6. The Ld. Judge ought to have seen that the 

father-son   due   had   concocted   the   story   of 

employment for their illicit gains.

7. On these very facts, the Ld. Judge ought to 

have held that this was a collusive proceeding by 

father   and   son   to   dupe   the   insurance   company, 

which was a public body.” 

ARGUMENTS OF THE PARTIES:-

11 Mr. S. M. Dange, the learned Counsel appearing on behalf of 

the Insurer (Appellant), submitted that there was no evidence regarding 

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the   employment   of   the   Applicant   by   the   Opposite   Party   nor   of  the 

Opposite   Party   paying   salary   to   the   Applicant.   Mr.   Dange   further 

submitted that it was admitted by the Applicant that he was the son of the 

Opposite Party. He submitted that the Commissioner ought to have seen 

that the father-son duo had concocted the story of employment for their 

illicit   gains.   The   Commissioner   ought   to   have   held   that   this   was  a 

collusive proceeding by father and son to dupe the Insurer, which was a 

public body.

12 Mr.   Dange   took   me   through   the   Affidavit-in-lieu   of   oral 

evidence of the Applicant and the cross examination of the Applicant. Mr. 

Dange submitted that, in his cross examination, the Applicant admitted 

that the Opposite Party was his father and further he also admitted that he 

had no evidence to show that he was drawing wages of Rs.4,000/- per 

month from the Opposite Party. Mr. Dange submitted that, in light of the 

said evidence, the case of the Applicant ought to have been rejected.

13  Mr. Dange submitted that, in the impugned Judgement, the 

Commissioner failed to appreciate this.  

14 Mr. Dange further submitted that there must be evidence to 

establish employer-employee relationship. However, in the present case, 

S.R.JOSHI 6 of 20

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there was no documentary evidence to establish an employer-employee 

relationship between the Applicant and the Opposite Party.

15 In support of his submissions, Mr. Dange relied upon the 

Judgements of the Hon’ble Supreme Court in  Manjusha & Others v/s. 

United India Assurance Co. Ltd. & Another, AIR 2025 SC 3446, National 

Insurance Co. Ltd. v/s. Mubasir Ahmed & Another, (2007) 2 SCC 349, and 

C. Manjamma & Another v/s. Divisional Manager, New India Assurance Co. 

Ltd. 2022 ACJ 2661.

16 Mr. Dange submitted that, for all the aforesaid reasons, the 

present First Appeal should be allowed.

17 On   the   other   hand,   Mr.   Mendon,   the   learned   Counsel 

appearing   on   behalf   of   Respondent   No.1,   supported   the   impugned 

Judgement and Order dated 28

th

 February, 2007.  

18 Mr. Mendon referred to Section 30 of the Act and submitted 

that the First Appeal could be filed under Section 30 only on a substantial 

question   of   law.   Mr.   Mendon   submitted   that   an   employer-employee 

relationship is a question of fact and not a question of law. In support of 

his submission, Mr. Mendon relied upon the Judgement of the Hon’ble 

S.R.JOSHI 7 of 20

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Supreme Court in North East Karnataka Road Transport Corporation v/s. 

Sujatha (2019) ACJ 29.

19 Further, Mr. Mendon submitted that the Courts have held 

that, just because a person is a relative of the owner of the vehicle, does 

not mean that he cannot be his employee. In support of his submission, 

Mr. Mendon relied upon the following Judgements:-

(i) Judgement of the Hon’ble Supreme Court in T. S. Shylaja v/s. 

Oriental Insurance Co. Ltd. 2014 ACJ 480;

(ii) Judgement of this Court in Chitrarekha Chandrarao Chaudhari v/s. 

C. R. Chaudhari & Another (in First Appeal No. 141 of 2012);

(iii) Judgement of the Karnataka High Court in Divisional Manager v/s. 

Pramilabai & Others [in MFA No. 31321/2010 (WC)];

(iv) Judgement of the Himachal Pradesh High Court in  Bajaj Allianz 

General Insurance v/s. Smt. Gulab Devi Gopen & Others [in FAO 

(WC) No. 359/2010]; and

(v) Judgement of the Hon’ble Supreme Court in Oriental Insurance Co. 

Ltd. v/s. Siby George & Others (2012) ACJ 2126.

20 In conclusion, Mr. Mendon submitted that there was no error 

in the Judgement and Order dated 28

th

  February, 2007 passed by the 

S.R.JOSHI 8 of 20

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Commissioner   and,   therefore,   the   present   First   Appeal   should   be 

dismissed with costs.

ANALYSIS AND FINDINGS:-

21 As far as the submission of Mr. Mendon, that no substantial 

question of law arises in this Appeal, is concerned, I am unable to accept 

the same. As pointed out earlier by me, this Court, by an Order dated 18

th 

February, 2010, admitted the Appeal on three substantial questions of law. 

Hence, I am not inclined to hold that the Appeal does not raise any 

substantial question of law.

22 The   three   questions   of   law,   on   which   this   Appeal   was 

admitted are as under:-

“5 The entire evidence regarding employment 

of Applicant was bogus and unreliable.  Hence the 

Ld. Judge ought to have rejected it.

6. The Ld. Judge ought to have seen that the 

father-son   due   had   concocted   the   story   of 

employment for their illicit gains.

7. On these very facts, the Ld. Judge ought to 

have held that this was a collusive proceeding by 

father and son to dupe the insurance company, 

which was a public body.” 

23 Since all these questions of law are interlinked, I will decide 

all of them together.

S.R.JOSHI 9 of 20

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24 The question that really arises is whether the Applicant, being 

the son of the Opposite Party, could have been his employee.  

25 In this context, it is important to note that the Courts have 

held that, just because a person is a relative of the owner of the vehicle, 

the same does not mean that he cannot be his /her employee. In this 

context, the following Judgements are relevant.

26 Paragraphs 2 to 8 of this Court’s judgement in  Chitrarekha 

Chandrarao Chaudhari (supra) are relevant and are set out hereunder:-

“2. This appeal challenges an order dated 24 February 2011 

passed   by   the   Labour   Court,   Mumbai   dismissing   the 

application made by the appellant-original applicant under 

Workmen's   Compensation   Act,   1923   (WC   Act)   seeking 

compensation of Rs.4,33,060/- along with interest.

3. On 20 November 2008, the deceased died in an accident 

while   driving  vehicle  no.MH-05-R-4613.   The   vehicle  was 

owned by the father of the deceased.

4.  The  Labour Court  has  come  to a  conclusion that  no 

evidence has been led by the appellant-applicant to prove 

employer-employee   relationship   and,   therefore,   the 

application is required to be dismissed. The Labour Court 

has referred to the examination-in-chief of the mother of the 

deceased and her cross-examination and has arrived at this 

finding.

5. There is no dispute that the mother of the deceased in her 

examination-in-chief   has   stated   that   the   deceased   was 

employed   with   his   father  for  driving  the   vehicle.   In  the 

cross-examination   of   the   mother   of   the   deceased,   it  has 

come on record that the father of the deceased was paying 

Rs.4,000/- as salary.

6. In my view, in the family where small businesses are run, 

the father and son do work together without any written 

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contract of employment between the two. Merely because 

there is no written contract between the father and son for 

the purpose of driving the vehicle, it cannot be said that 

there was no employer-employee relationship between them. 

The mother of the deceased in her affidavit in evidence and 

cross has explained that the deceased was working as a 

driver and drawing a salary of Rs.4,000/-. This evidence in 

the facts of the present case could not have been rejected, 

moreso when we are concerned with a welfare legislation.

7.   The   learned   counsel   for   the   appellant   is   justified   in 

relying on following decisions:-

(i) Oriental Insurance Co. Ltd. vs. Hanumant & Anr.

(ii) Divisional Manager vs. Pramilabai w/o Mohan Rao 

      Kulkarni

(iii) New India Assurance Co. Ltd. vs. G. D. Dengi & Anr.

(iv) United India Insurance Co. Ltd. vs. Jhonsa & Ors.

(v) T. S. Shylaja vs. Oriental Insurance Co. Ltd. & Anr.

8. In the above decisions, the facts were very similar to the 

facts before me, wherein it has been held that in the case of 

father and son there need not be any documentary evidence 

for establishing the relationship of employer and employee.

27 Paragraphs 22, 23 and 26 of the Judgement of the Himachal 

Pradesh High Court in  Bajaj Allianz General Insurance (supra) are relevant 

and are set out hereunder:-

“22. In law, there is no bar or prohibition that a real 

brother cannot be engaged as an employee. As it was the 

allegation   of   the   Insurance   Company   that   the   claim 

preferred   by   the   claimants   before   the   learned 

Commissioner was collusive with the owner of the vehicle 

and further that there was no relationship of employer 

and employee between the deceased and the owner of the 

vehicle, the onus to prove the same, but obvious was upon 

the   Insurance   Company.   As   I   have   already   mentioned 

hereinabove, there is not even an iota of evidence placed 

on record by the Insurance Company to substantiate that 

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either the Claim Petition was collusive or that there was 

no relationship of employer and employee between the 

deceased and the owner of the vehicle. 

23. In the light of the fact that the owner of the vehicle 

had admitted deceased being engaged by him as a driver, 

nothing more was required to be proved by the claimants 

in view of the law laid down by Hon'ble Supreme Court 

in  T.S.   Shylaja   Versus   Oriental  Insurance   Company  & 

Another, (2014) 2 SCC 587, in which judgment, Hon'ble 

Supreme Court has held as under:-

"10.   The   Commissioner   for   Workmen's 

Compensation had, in the case at hand, appraised 

the  evidence  adduced   before  him  and  recorded  a 

finding   of   fact   that   the   deceased   was   indeed 

employed as a driver by the owner of the vehicle no 

matter that the owner happened to be his brother. 

The finding could not be lightly interfered with or 

reversed   by   the   High   Court.   The   High   Court 

overlooked the fact that the respondent owner of the 

vehicle had appeared as a witness and clearly stated 

that the deceased was his younger brother, but was 

working   as   a   paid   driver   under   him.   The 

Commissioner had, in this regard, observed:

"After   examining   the   judgment   of   the   Andhra 

Pradesh   High   Court   relied   upon   by   the   second 

opponent it is seen that the owner of the vehicle 

being   the   sole   witness   has   been   unsuccessful   in 

establishing   his   case   but   in   this   proceeding   the 

owner of the vehicle has appeared before this Court 

even though he is a relative of the deceased, and has 

submitted in his objections, even evidence that even 

though  the  deceased   was  his  younger brother  he 

was   working   as   a   driver   under   him,   and   has 

admitted that he was paying salary to him. The 

applicant in support of his case has submitted that 

Hon'ble   High   Court   judgment   in   United   India 

Insurance Co. Ltd. v. Yallappa Bhimappa alagudi 

which I have examined in depth which holds that 

there is no law that relatives cannot be in employer- 

employee relationship. Therefore it is not possible to 

ignore the oral and documentary evidence in favour 

of   the   applicant   and   such   evidence   has   to   be 

weighed   in   favour   of   the   applicant.   For   these 

reasons I hold that the deceased was working as 

driver   under   first   opponent   and   driving   Toyota 

S.R.JOSHI 12 of 20

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Quails No.KA 02 C 423, that he died in accident on 

3-9-2000, that he is a 'workman' as defined in the 

Workmen's Compensation Act and it is held that he 

has caused accident in the course of employment in 

a negligent fashion which has resulted in his death".

11. The only reason which the High Court has given 

to upset the above findings of the Commissioner is 

that the Commissioner could not blindly accept the 

oral evidence without analyzing the documentary 

evidence on record. We fail to appreciate as to what 

was   the   documentary   evidence   which   the   High 

Court had failed to appreciate and what was the 

contradiction. If any, between such documents and 

the version given by the witnesses examined before 

the Commissioner. The High Court could not have, 

without   adverting   to   the   documents   vaguely 

referred to by it have upset the finding of fact which 

the Commissioner was entitled to record. Suffice it 

to   say   that   apart   from   appreciation   of   evidence 

adduced before the Commissioner the High Court 

has neither referred to nor determined any question 

of   law   much   less   a   substantial   question   of   law 

existence whereof was a condition precedent for the 

maintainability   of   any   appeal   under   Section   30. 

Inasmuch as the High Court remained oblivious of 

the basic requirement of law for the maintainability 

of an appeal before it and inasmuch as it treated 

the appeal to be one on facts it committed an error 

which needs to be corrected".

26. There is nothing placed on record by the Insurance 

Company   to   prove   that   the   deceased   was   otherwise 

gainfully employed or engaged somewhere else. Thus, in 

the absence of any such evidence being on record and in 

the light of admission being there of the employer that the 

deceased was duly engaged by him as a driver with his 

vehicle, who incidently also happened to be of his real 

brother, it cannot be said that the learned Commissioner 

erred in allowing the claim application. This is more so for 

the reason that it is an admitted fact that the O.D. Claim, 

which was submitted by the owner of the vehicle with the 

Insurance Company, in which the factum of the deceased 

driver   being   his   brother   stood   disclosed,   was   duly 

honoured by the Insurance Company. Substantial question 

of law stands answered accordingly.

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28 Paragraph 9 of the Judgement of the Hon’ble Supreme Court 

in  T. S. Shylaja (supra) is relevant and is set out hereunder:-

“9. The Commissioner for Workmen's Compensation had, 

in   the   case   at   hand,   appraised   the   evidence   adduced 

before   him   and   recorded   a   finding   of   fact   that   the 

deceased was indeed employed as a driver by the owner of 

the   vehicle   no   matter   the   owner   happened   to   be   his 

brother. That finding could not be lightly interfered with 

or reversed by the High Court. The High Court overlooked 

the   fact   that   respondent-owner   of   the   vehicle   had 

appeared   as   a   witness   and   clearly   stated   that   the 

deceased was his younger brother, but was working as a 

paid driver under him. The Commissioner had, in this 

regard, observed:

"After   examining   the   judgment   of   Andhra 

Pradesh   High   Court   relied   upon   by   the 

second opponent it is seen that the owner of 

the vehicle being the sole witness has been 

unsuccessful in establishing his case but in 

this proceeding the owner of the vehicle has 

appeared before this court even though he is 

a relative of the deceased, and has submitted 

in   his   objections,   even   evidence   that   even 

though the deceased was his younger brother 

he was working as a driver under him, and 

has admitted that he was paying salary to 

him. Applicant in support of his case has 

submitted   Hon'ble   High   Court   judgment 

reported in Divisional Manager, United India 

Insurance   Co.  Ltd.  v.  Yellappa  Bheemappa 

Alagudi, ILR 2006 KAR 518, which I have 

examined in depth which holds that there is 

no law that relatives cannot be in employer-

employee   relationship.   Therefore,   it   is   not 

possible to ignore the oral and documentary 

evidence in favour of the applicant and such 

evidence has to be weighed in favour of the 

applicant.   For   these   reasons,   I   hold   that 

deceased was working as driver under first 

opponent and driving Toyota Qualis No. KA 

02-C   423,   that   he   died   in   accident   on 

3.9.2005, that he is a 'workman' as defined 

in the Workmen's Compensation Act and it is 

held that he has caused the accident in the 

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course of employment in a negligent fashion 

which has resulted in his death."

29 Paragraph 11 of the Judgement of the Karnataka High Court 

in Pramilabai & Others (supra) is relevant and is set out hereunder:-

“11. The very argument now advanced by the learned counsel 

appearing   for   the   appellant   was   addressed   in   the   case   of 

G.D.Dengi   (supra)   placing   reliance   on   the   Judgment   of 

Gottukukkala   Appala   Narasimha   Raju(supra).   Considering 

the said judgment, this Court has held: 

5.  While arguing the case, the learned counsel 

for   appellant   relied   on   the   decision   of   Apex 

Court in Gottumukkala Appala Narsimha Raju 

V. National Insurance Co. Ltd., 2007 ACJ 1025 

(SC), wherein it was observed that technically, 

it may be possible that the husband is employed 

under   the   wife,   but   while   arriving   at   a 

conclusion that when a dispute has been raised 

by other side, the overall situation should have 

been taken into consideration. The fact, which 

speaks for itself shows that the owner of the 

tractor   joined   hands   with   the   claimant   for 

laying   a   claim   only   against   the   insurer.   The 

claim was not bona fide.

8.  The learned counsel for respondent No. 2 

also contended that the decision relied on by the 

appellant   in   Gottumukkala   Appala   Narsimha 

Raju's   case   2007   ACJ   1025   (SC),   is   not 

applicable to the facts involved in this appeal. 

He has relied on the decision of this Court in 

Oriental Insurance Co. Ltd. V. Hanumant, 2006 

ACJ 251 (Kant), wherein it is held thus:

"2) ... It is not uncommon amongst the 

business family to engage their own kith 

and kin on employment for doing the 

business or commercial activity. Merely 

because in such a situation no wages are 

paid in cash is also not a ground to infer 

absence   of   a   legal   relationship   of 

employer   and   employee,   since   there 

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would always be consideration in kind 

computable in terms of money for the 

services rendered. The parties would not 

go   for   documentation   of   the   contract 

nor create any documentary material to 

prove payment of wages in view of the 

peculiar family relationship..."

30 Further, in the present case, in his Written Statement, the 

Opposite Party has admitted that the Applicant was his employee.  

31 In paragraph 1 of his Affidavit-in-lieu of oral evidence, the 

Applicant has deposed that he was employed since 2001 in his capacity as 

a driver of motor vehicle bearing Registration No. MH-02-QA-5370 on 

monthly wages/ salary of Rs.4,000/- per month from the Opposite Party. 

In his cross examination, apart from putting a suggestion to the Applicant, 

the only fact that the Insurer could bring out was that the Applicant had 

no   documentary   evidence   to   show   that   he   was   drawing   wages   of 

Rs.4,000/- per month. In my view, especially since the Applicant was the 

son of the Opposite Party, it would be normal in the natural course of 

events that there would be no documentary evidence showing that the 

Opposite Party was paying him wages of Rs.4,000/- per month.

32 Further, as rightly held by the Commissioner, the Applicant 

had stated on oath that he was drawing wages of Rs.4,000/- per month. 

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The Opposite Party, who was his employer, admitted the said fact in his 

Written   Statement.   The   Opposite   Party   had   also   produced   the   Wage 

Certificate which evidenced the payment of wages to the Applicant.  The 

Opposite Party has stated in the said Certificate that he used to pay wages 

of Rs.4,000/- per month to the Applicant. Thus the fact of payment of 

wages and quantum  of wages is admitted between the employer and the 

employee.

33 On the other hand, the Insurer has not led any evidence to 

disprove this fact.  

34 In these circumstances, in my view, the Commissioner was 

right in holding the following:-

“9.  According to the applicant opp. Party is a 

owner   of   the   vehicle   MH-02-QA-5370.   Further 

according to him, opp.party engaged him as driver on 

the said vehicle. The insurance company has denied 

the said fact categorically. However Opp. Party who is 

owner of vehicle admitted the said fact clearly in the 

written   statement   filed   at   Ex.C-3.   Opposite   Party 

stated in the written statement that he had employed 

the applicant as a driver on his vehicle MH-02-QA-

5370. Thus employer himself admitted the existence 

of   employer-employee   relationship   in   between   the 

parties. Thereafter refer though Insurance Company 

denied that said fact it will not make much difference.

10.   Applicant   stated   on   oath   that   he   was 

drawing   the   wages   of   Rs.4000/-   per   month.   Opp. 

Party who is employer admitted the said fact in the 

written   statement.   The   opp.   Party   has   also   issued 

wage certificate it is at sr. no.9 of the list at Exh.U-4. 

Employer stated in his certificate that he sued to pay 

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wages at Rs.4000/- per month to the applicant. Thus 

fact of payment of wages and quantum of wages is 

admitted   in   between   the   employee-employer. 

Therefore though Insurance Company has disputed it 

will not make much difference.”

35 This leads me to deal with the Judgement of the Hon’ble 

Supreme Court in  Manjusha & Others (supra)  which has been referred to 

by Mr. Dange.  Paragraph 13 of the said Judgement reads as under:-

“13. In this context, we cannot but notice Ramkhiladi (AIR 

2020 SC 527), in which there was a contention taken by 

the claimant that the deceased was employed by the owner 

of the vehicle, the motor bike. It was held in paragraph 9.3 

that no evidence was led by the claimants to prove that the 

deceased driver was an employee of the owner. Pleadings 

and proof of such pleadings; by valid evidence led, is the 

crux   and   core   of   any   adjudicatory   process.   Trite   is  the 

principle that there can be no proof offered without specific 

pleadings.   The   limited   liability   was   not   pleaded,   by  the 

insurance company, either before the Tribunal, as we see 

from the award made, nor in the appeal filed before the 

High Court as we see from the memorandum of appeal filed 

before the High Court.”

36 In the said Judgement, the Hon’ble Supreme Court has held 

that in the case of Ramkhiladi v/s. The United India Insurance Company 

AIR (2020) SCC 527, there was a contention taken by the Claimant that 

the deceased was employed by the owner of the vehicle.  It was held in 

paragraph 9.3 that no evidence was led by the Claimant to prove that the 

deceased driver was an employee of the owner.  Pleadings, and proof of 

such   pleadings   by   valid   evidence   led,   is   the   crux   and   core   of   any 

adjudicatory process. Trite is the principle that there can be no proof 

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offered without specific pleadings.  

37 In my view, what is held in Manjusha & Others (supra),  does 

not take the case of the Insurer any further.  In the present case, not only 

did the Applicant depose that he was an employee of the Opposite Party 

but   the   Opposite   Party   also   admitted   the   said   fact   in   his   Written 

Statement.  The Opposite Party also produced a Wage Certificate showing 

that the Applicant was his employee. Therefore, the fact that there was an 

employer-employee   relationship   between   the   Opposite   Party   and   the 

Applicant has not only been pleaded but has been proved.

38 On the other hand, the Insurer has not led any evidence. 

39 In the light of the aforesaid, the questions of law, on which 

the present First Appeal was admitted, are decided in favour of the 

Applicant.

40 In   my   view,   the   Commissioner   has   correctly   passed   the 

Judgement and Order dated 28

th

  February, 2007. I see no reason to 

interfere with the said Judgement and Order dated 28

th

 February, 2007.

ORDER:-

41 In the light of the aforesaid discussion, and for the aforesaid 

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reasons, the following orders are passed:-

(a) The First Appeal is dismissed;

(b) In the facts and circumstances of the case, there will be no order as 

to costs.

(FIRDOSH P. POONIWALLA,J.)

S.R.JOSHI 20 of 20

Reference cases

Description

The Bombay High Court recently deliberated on a significant First Appeal concerning the Employee's Compensation Act, 1923, specifically addressing the intricacies of an employer-employee relationship between relatives. This judgment, 27-fa-1760-2009.doc, is now meticulously analyzed and available on CaseOn, offering legal professionals and students unparalleled insights into its implications.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION

FIRST APPEAL NO.1760 OF 2009

The New India Assurance Co. Ltd.
Jeevan Seva, 2nd Floor, S. V. Road,
Santacruz (W), Mumbai 400 054.

v/s.

Dineshkumar J. Dubey
residing at R. B. Yadav Chawl
Shivaji Vallabh Cross Road,
New Ashokvan Ravalpada
Dahisar (E), Mumbai.

Jeelajeet B. Dubey
Laxmibai Ramprasad Mishra
Compound, Kokani Pada, Shiv
Vallabh Cross Road, Dahisar (E),
Mumbai 400 068.

Mr. S. M. Dange, for the Appellant.
Mr. T. J. Mendon, for Respondent No.1

CORAM: FIRDOSH P. POONIWALLA,J.
RESERVED ON : 20th NOVEMBER, 2025.
PRONOUNCED ON : 15th APRIL, 2026.

JUDGEMENT OVERVIEW

The present First Appeal is filed under Section 30 of the Employee's Compensation Act, 1923 (hereinafter referred to as “the Act”), impugning the Judgement and Order dated 28th February, 2007 passed by the Commissioner for Workmen's Compensation and Judge, 6th Labour Court, Mumbai in Application No. A (WCA) 644/C-226/2003, allowing the Application.

In this Judgement, the parties will be referred to as per their description in the Original Application.

FACTS OF THE CASE

The Applicant had filed the Application for getting compensation of an amount of Rs.5,20,584/- with interest and penalty from the Opposite Party and the Insurance Company.

The Applicant's case is as under:-

(a) The Opposite Party is the owner of a vehicle bearing No. MH-02-QA-5370. The Opposite Party appointed the Applicant as a driver of the said vehicle and used to pay wages of Rs.4,000/- per month to him.

(b) The Applicant met with an accident in the course of employment with the Opposite Party on the highway road near Times of India signal on 13th August, 2002. He sustained the following injuries:-

“(a) #(Lt) Fibula
(b) # Lat. Mallcola with Medical side ligament injury with unstable ankle.
(c) ORIF with 9hole 1/3rd Tabular plate with 4mm CC screw as syndemotic screw and BG from upper end."
(hereinafter referred to as “the said injuries”).

(c) The Applicant was admitted to Bhagwati Hospital on 13th August, 2002. He was discharged from the hospital on 3rd September, 2002.

Due to the said injuries, the Applicant is not in a position to continue his occupation as a driver. He has lost his earning capacity. Therefore, he is entitled to receive compensation of Rs.5,20,584/- from the Opposite Party and the Insurance Company.

The Opposite Party filed a Written Statement at Exh. “C-3”. The Opposite Party admitted that he was the owner of the vehicle bearing No. MH-02-QA-5370. He admitted that he had employed the Applicant as a driver. He further submitted that he used to pay wages at Rs.4,000/- per month to the Applicant. He admitted that the Applicant met with an accident in the course of and arising out of the employment with the Opposite Party on 13th August, 2002. The Opposite Party stated that the said vehicle was insured with the Insurer. Hence, he prayed that the Insurance Company be directed to pay the compensation, if any.

The Insurance Company contested the Application by filing a Written Statement at Exh. “CA-4”. The Insurer stated that the Applicant is not a workman. The Insurer further stated that there was no employer-employee relationship between the Applicant and the Opposite Party. The Insurer denied that the accident occurred in the course of, and arising out of, the employment with the Opposite Party. The Insurer denied that the Applicant was getting wages of Rs.4,000/- per month. Finally, the Insurer denied that the Applicant is entitled to receive an amount of Rs.5,20,584/- with interest and penalty from the Insurer.

Considering the pleadings of the parties, the following are the Issues framed by the Commissioner and his findings thereon:-

Issues Findings
1. Does applicant proved that he sustained injuries in an accident arising out of and in the course of employment with opp. Party from 13.8.2002? Proved
2. Does applicant proved that he is entitled for the compensation? If yes, what extend? As per the final order
2. What Order? As per the final order.

Before the Commissioner, the Applicant has examined himself. The Applicant also examined Dr. Azgaonkar. The Applicant produced the certified copies of the police statement, medical case papers and the follow up card of Bhagwati Hospital from September, 2002 to March, 2003, disability certificate, Insurance Policy, Tax Certificate, Driving License, Copy of the W.C. Claim Form and the Wage Certificate. Both the Opposite Party and the Insurer did not give any evidence.

By a Judgement and Order dated 28th February, 2007, the Commissioner passed the following order:-

“ORDER
1. Application is allowed.
2. Opp. Party and Insurer who are jointly and severally liable are directed to deposit a sum of Rs.5,20,584/- with interest at the rate of 12% on it from the date of present order till the date of realization within a period of 2 months from today.
3. No order as to the costs."

ISSUE: Substantial Questions of Law in the First Appeal

By an Order dated 18th February, 2010 passed by this Court, the present First Appeal was admitted on the substantial questions of law as contained in paragraph Nos. 5, 6 and 7 of the Appeal Memo, which are as under:-

“5 The entire evidence regarding employment of Applicant was bogus and unreliable. Hence the Ld. Judge ought to have rejected it.
6. The Ld. Judge ought to have seen that the father-son due had concocted the story of employment for their illicit gains.
7. On these very facts, the Ld. Judge ought to have held that this was a collusive proceeding by father and son to dupe the insurance company, which was a public body."

Since all these questions of law are interlinked, the Court addressed all of them together. The core question that truly arises is whether the Applicant, being the son of the Opposite Party, could have been his employee, particularly in the context of the employer-employee relationship and compensation under the Employee's Compensation Act, 1923.

RULE: Precedents on Employer-Employee Relationship and Kinship

In this context, it is important to note that the Courts have held that, just because a person is a relative of the owner of the vehicle, the same does not mean that he cannot be his /her employee. The following Judgements are relevant:

Paragraphs 2 to 8 of this Court's judgment in Chitrarekha Chandrarao Chaudhari v/s. C. R. Chaudhari & Another (in First Appeal No. 141 of 2012) are relevant and are set out hereunder:-

“2. This appeal challenges an order dated 24 February 2011 passed by the Labour Court, Mumbai dismissing the application made by the appellant-original applicant under Workmen's Compensation Act, 1923 (WC Act) seeking compensation of Rs.4,33,060/- along with interest.
3. On 20 November 2008, the deceased died in an accident while driving vehicle no.MH-05-R-4613. The vehicle was owned by the father of the deceased.
4. The Labour Court has come to a conclusion that no evidence has been led by the appellant-applicant to prove employer-employee relationship and, therefore, the application is required to be dismissed. The Labour Court has referred to the examination-in-chief of the mother of the deceased and her cross-examination and has arrived at this finding.
5. There is no dispute that the mother of the deceased in her examination-in-chief has stated that the deceased was employed with his father for driving the vehicle. In the cross-examination of the mother of the deceased, it has come on record that the father of the deceased was paying Rs.4,000/- as salary.
6. In my view, in the family where small businesses are run, the father and son do work together without any written contract of employment between the two. Merely because there is no written contract between the father and son for the purpose of driving the vehicle, it cannot be said that there was no employer-employee relationship between them. The mother of the deceased in her affidavit in evidence and cross has explained that the deceased was working as a driver and drawing a salary of Rs.4,000/-. This evidence in the facts of the present case could not have been rejected, moreso when we are concerned with a welfare legislation.
7. The learned counsel for the appellant is justified in relying on following decisions:-
(i) Oriental Insurance Co. Ltd. vs. Hanumant & Anr.
(ii) Divisional Manager vs. Pramilabai w/o Mohan Rao Kulkarni
(iii) New India Assurance Co. Ltd. vs. G. D. Dengi & Anr.
(iv) United India Insurance Co. Ltd. vs. Jhonsa & Ors.
(v) T. S. Shylaja vs. Oriental Insurance Co. Ltd. & Anr.
8. In the above decisions, the facts were very similar to the facts before me, wherein it has been held that in the case of father and son there need not be any documentary evidence for establishing the relationship of employer and employee."

Paragraphs 22, 23 and 26 of the Judgement of the Himachal Pradesh High Court in Bajaj Allianz General Insurance v/s. Smt. Gulab Devi Gopen & Others [in FAO (WC) No. 359/2010] are relevant and are set out hereunder:-

"22. In law, there is no bar or prohibition that a real brother cannot be engaged as an employee. As it was the allegation of the Insurance Company that the claim preferred by the claimants before the learned Commissioner was collusive with the owner of the vehicle and further that there was no relationship of employer and employee between the deceased and the owner of the vehicle, the onus to prove the same, but obvious was upon the Insurance Company. As I have already mentioned hereinabove, there is not even an iota of evidence placed on record by the Insurance Company to substantiate that either the Claim Petition was collusive or that there was no relationship of employer and employee between the deceased and the owner of the vehicle.
23. In the light of the fact that the owner of the vehicle had admitted deceased being engaged by him as a driver, nothing more was required to be proved by the claimants in view of the law laid down by Hon'ble Supreme Court in T.S. Shylaja Versus Oriental Insurance Company & Another, (2014) 2 SCC 587, in which judgment, Hon'ble Supreme Court has held as under:-

"10. The Commissioner for Workmen's Compensation had, in the case at hand, appraised the evidence adduced before him and recorded a finding of fact that the deceased was indeed employed as a driver by the owner of the vehicle no matter that the owner happened to be his brother. The finding could not be lightly interfered with or reversed by the High Court. The High Court overlooked the fact that the respondent owner of the vehicle had appeared as a witness and clearly stated that the deceased was his younger brother, but was working as a paid driver under him. The Commissioner had, in this regard, observed:

"After examining the judgment of the Andhra Pradesh High Court relied upon by the second opponent it is seen that the owner of the vehicle being the sole witness has been unsuccessful in establishing his case but in this proceeding the owner of the vehicle has appeared before this Court even though he is a relative of the deceased, and has submitted in his objections, even evidence that even though the deceased was his younger brother he was working as a driver under him, and has admitted that he was paying salary to him. Applicant in support of his case has submitted Hon'ble High Court judgment reported in Divisional Manager, United India Insurance Co. Ltd. v. Yellappa Bheemappa Alagudi, ILR 2006 KAR 518, which I have examined in depth which holds that there is no law that relatives cannot be in employer-employee relationship. Therefore it is not possible to ignore the oral and documentary evidence in favour of the applicant and such evidence has to be weighed in favour of the applicant. For these reasons I hold that the deceased was working as driver under first opponent and driving Toyota Quails No.KA 02 C 423, that he died in accident on 3-9-2000, that he is a 'workman' as defined in the Workmen's Compensation Act and it is held that he has caused accident in the course of employment in a negligent fashion which has resulted in his death".

11. The only reason which the High Court has given to upset the above findings of the Commissioner is that the Commissioner could not blindly accept the oral evidence without analyzing the documentary evidence on record. We fail to appreciate as to what was the documentary evidence which the High Court had failed to appreciate and what was the contradiction. If any, between such documents and the version given by the witnesses examined before the Commissioner. The High Court could not have, without adverting to the documents vaguely referred to by it have upset the finding of fact which the Commissioner was entitled to record. Suffice it to say that apart from appreciation of evidence adduced before the Commissioner the High Court has neither referred to nor determined any question of law much less a substantial question of law existence whereof was a condition precedent for the maintainability of any appeal under Section 30. Inasmuch as the High Court remained oblivious of the basic requirement of law for the maintainability of an appeal before it and inasmuch as it treated the appeal to be one on facts it committed an error which needs to be corrected".

26. There is nothing placed on record by the Insurance Company to prove that the deceased was otherwise gainfully employed or engaged somewhere else. Thus, in the absence of any such evidence being on record and in the light of admission being there of the employer that the deceased was duly engaged by him as a driver with his vehicle, who incidently also happened to be of his real brother, it cannot be said that the learned Commissioner erred in allowing the claim application. This is more so for the reason that it is an admitted fact that the O.D. Claim, which was submitted by the owner of the vehicle with the Insurance Company, in which the factum of the deceased driver being his brother stood disclosed, was duly honoured by the Insurance Company. Substantial question of law stands answered accordingly.

Paragraph 9 of the Judgement of the Hon'ble Supreme Court in T. S. Shylaja (supra) is relevant and is set out hereunder:-

“9. The Commissioner for Workmen's Compensation had, in the case at hand, appraised the evidence adduced before him and recorded a finding of fact that the deceased was indeed employed as a driver by the owner of the vehicle no matter the owner happened to be his brother. That finding could not be lightly interfered with or reversed by the High Court. The High Court overlooked the fact that respondent-owner of the vehicle had appeared as a witness and clearly stated that the deceased was his younger brother, but was working as a paid driver under him. The Commissioner had, in this regard, observed:

"After examining the judgment of Andhra Pradesh High Court relied upon by the second opponent it is seen that the owner of the vehicle being the sole witness has been unsuccessful in establishing his case but in this proceeding the owner of the vehicle has appeared before this court even though he is a relative of the deceased, and has submitted in his objections, even evidence that even though the deceased was his younger brother he was working as a driver under him, and has admitted that he was paying salary to him. Applicant in support of his case has submitted Hon'ble High Court judgment reported in Divisional Manager, United India Insurance Co. Ltd. v. Yellappa Bheemappa Alagudi, ILR 2006 KAR 518, which I have examined in depth which holds that there is no law that relatives cannot be in employer-employee relationship. Therefore, it is not possible to ignore the oral and documentary evidence in favour of the applicant and such evidence has to be weighed in favour of the applicant. For these reasons, I hold that deceased was working as driver under first opponent and driving Toyota Qualis No. KA 02-C 423, that he died in accident on 3.9.2005, that he is a 'workman' as defined in the Workmen's Compensation Act and it is held that he has caused the accident in the course of employment in a negligent fashion which has resulted in his death."

Paragraph 11 of the Judgement of the Karnataka High Court in Pramilabai & Others (supra) is relevant and is set out hereunder:-

“11. The very argument now advanced by the learned counsel appearing for the appellant was addressed in the case of G.D.Dengi (supra) placing reliance on the Judgment of Gottukukkala Appala Narasimha Raju(supra). Considering the said judgment, this Court has held:

5. While arguing the case, the learned counsel for appellant relied on the decision of Apex Court in Gottumukkala Appala Narsimha Raju V. National Insurance Co. Ltd., 2007 ACJ 1025 (SC), wherein it was observed that technically, it may be possible that the husband is employed under the wife, but while arriving at a conclusion that when a dispute has been raised by other side, the overall situation should have been taken into consideration. The fact, which speaks for itself shows that the owner of the tractor joined hands with the claimant for laying a claim only against the insurer. The claim was not bona fide.
8. The learned counsel for respondent No. 2 also contended that the decision relied on by the appellant in Gottumukkala Appala Narsimha Raju's case 2007 ACJ 1025 (SC), is not applicable to the facts involved in this appeal. He has relied on the decision of this Court in Oriental Insurance Co. Ltd. V. Hanumant, 2006 ACJ 251 (Kant), wherein it is held thus:

"2) ... It is not uncommon amongst the business family to engage their own kith and kin on employment for doing the business or commercial activity. Merely because in such a situation no wages are paid in cash is also not a ground to infer absence of a legal relationship of employer and employee, since there would always be consideration in kind computable in terms of money for the services rendered. The parties would not go for documentation of the contract nor create any documentary material to prove payment of wages in view of the peculiar family relationship..."

The Hon'ble Supreme Court in **Manjusha & Others v/s. United India Assurance Co. Ltd. & Another** (AIR 2025 SC 3446) highlighted the importance of pleadings and proof by valid evidence in establishing an employer-employee relationship. Paragraph 13 of the said Judgement reads as under:-

“13. In this context, we cannot but notice Ramkhiladi (AIR 2020 SC 527), in which there was a contention taken by the claimant that the deceased was employed by the owner of the vehicle, the motor bike. It was held in paragraph 9.3 that no evidence was led by the claimants to prove that the deceased driver was an employee of the owner. Pleadings and proof of such pleadings; by valid evidence led, is the crux and core of any adjudicatory process. Trite is the principle that there can be no proof offered without specific pleadings. The limited liability was not pleaded, by the insurance company, either before the Tribunal, as we see from the award made, nor in the appeal filed before the High Court as we see from the memorandum of appeal filed before the High Court."

In the said Judgement, the Hon'ble Supreme Court has held that in the case of **Ramkhiladi v/s. The United India Insurance Company** AIR (2020) SCC 527, there was a contention taken by the Claimant that the deceased was employed by the owner of the vehicle. It was held in paragraph 9.3 that no evidence was led by the Claimant to prove that the deceased driver was an employee of the owner. Pleadings, and proof of such pleadings by valid evidence led, is the crux and core of any adjudicatory process. Trite is the principle that there can be no proof offered without specific pleadings.

ANALYSIS: Application of Rules to the Present Case

As far as the submission of Mr. Mendon, that no substantial question of law arises in this Appeal, is concerned, the Court was unable to accept the same. As pointed out earlier, this Court, by an Order dated 18th February, 2010, admitted the First Appeal on three substantial questions of law. Hence, the Court was not inclined to hold that the Appeal does not raise any substantial question of law.

In the present case, in his Written Statement, the Opposite Party has admitted that the Applicant was his employee.

In paragraph 1 of his Affidavit-in-lieu of oral evidence, the Applicant has deposed that he was employed since 2001 in his capacity as a driver of motor vehicle bearing Registration No. MH-02-QA-5370 on monthly wages/ salary of Rs.4,000/- per month from the Opposite Party. In his cross examination, apart from putting a suggestion to the Applicant, the only fact that the Insurer could bring out was that the Applicant had no documentary evidence to show that he was drawing wages of Rs.4,000/- per month. In the Court's view, especially since the Applicant was the son of the Opposite Party, it would be normal in the natural course of events that there would be no documentary evidence showing that the Opposite Party was paying him wages of Rs.4,000/- per month.

Further, as rightly held by the Commissioner, the Applicant had stated on oath that he was drawing wages of Rs.4,000/- per month. The Opposite Party, who was his employer, admitted the said fact in his Written Statement. The Opposite Party had also produced the Wage Certificate which evidenced the payment of wages to the Applicant. The Opposite Party has stated in the said Certificate that he used to pay wages of Rs.4,000/- per month to the Applicant. Thus the fact of payment of wages and quantum of wages is admitted between the employer and the employee.

On the other hand, the Insurer has not led any evidence to disprove this fact. For legal professionals looking for concise summaries and critical analysis, CaseOn’s 2-minute audio briefs on judgments like this one offer a strategic advantage, enabling quick comprehension of complex rulings and their implications for the employer-employee relationship in family businesses.

In these circumstances, in the Court's view, the Commissioner was right in holding the following:-

"9. According to the applicant opp. Party is a owner of the vehicle MH-02-QA-5370. Further according to him, opp.party engaged him as driver on the said vehicle. The insurance company has denied the said fact categorically. However Opp. Party who is owner of vehicle admitted the said fact clearly in the written statement filed at Ex.C-3. Opposite Party stated in the written statement that he had employed the applicant as a driver on his vehicle MH-02-QA-5370. Thus employer himself admitted the existence of employer-employee relationship in between the parties. Thereafter refer though Insurance Company denied that said fact it will not make much difference.
10. Applicant stated on oath that he was drawing the wages of Rs.4000/- per month. Opp. Party who is employer admitted the said fact in the written statement. The opp. Party has also issued wage certificate it is at sr. no.9 of the list at Exh.U-4. Employer stated in his certificate that he sued to pay wages at Rs.4000/- per month to the applicant. Thus fact of payment of wages and quantum of wages is admitted in between the employee-employer. Therefore though Insurance Company has disputed it will not make much difference.”

The Court distinguished the present case from **Manjusha & Others (supra)**. In the present case, not only did the Applicant depose that he was an employee of the Opposite Party but the Opposite Party also admitted the said fact in his Written Statement. The Opposite Party also produced a Wage Certificate showing that the Applicant was his employee. Therefore, the fact that there was an employer-employee relationship between the Opposite Party and the Applicant has not only been pleaded but has been proved. On the other hand, the Insurer has not led any evidence.

CONCLUSION: Affirmation of Commissioner's Order

In the light of the aforesaid, the questions of law, on which the present First Appeal was admitted, are decided in favour of the Applicant. In the Court's view, the Commissioner has correctly passed the Judgement and Order dated 28th February, 2007. The Court saw no reason to interfere with the said Judgement and Order dated 28th February, 2007.

ORDER:-

In the light of the aforesaid discussion, and for the aforesaid reasons, the following orders are passed:-

(a) The First Appeal is dismissed;
(b) In the facts and circumstances of the case, there will be no order as to costs.

(FIRDOSH P. POONIWALLA,J.)

Why This Judgment is an Important Read for Lawyers and Students

This judgment is critical for understanding the nuances of the employer-employee relationship, especially in informal settings or family businesses, under the Employee's Compensation Act, 1923. It clarifies that the absence of formal documentary evidence, particularly when relatives are involved, does not automatically negate the existence of an employment contract. The ruling reinforces the principle that admissions by the employer and oral evidence, when credible, can establish such a relationship. For lawyers, it provides a strong precedent for arguing cases where traditional employment proofs are scarce. For students, it offers insight into judicial interpretation of welfare legislation and the practical application of legal principles concerning family employment and insurance liability.

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