Employee's Compensation Act | Accident During Lunch Break At Worksite Arises Out Of Employment: Delhi High Court

Justice Manoj Kumar Ohri observed that a temporary break for meals does not sever the nexus between employment and the accident.

The Court made the observation while dismissing an appeal filed by National Insurance Company Ltd. challenging an award directing it to pay compensation of ₹7.86 lakh with interest to a supervisor who lost his left leg after an iron rod being carried by a mobile crane fell on him at a construction site in Delhi in 2010.

The insurer contended that the claimant was on a lunch break when the accident occurred and, therefore, the injuries did not arise out of or in the course of employment. It also argued that the claimant, being a supervisor, did not fall within the definition of an "employee" under the Employee's Compensation Act.

The High Court however observed,

"The accident admittedly occurred at the work site while the claimant was present there in connection with his employment. A temporary break for taking meals does not, by itself, sever the nexus between employment and the accident."

The Court also rejected the insurer's argument that the claimant's designation as a supervisor excluded him from the ambit of the Act. It held that the designation assigned to a worker is not determinative and that what matters is the nature of duties actually discharged.

“Apart from the bald plea taken in the written statement, no material has been brought on record to establish that the claimant was discharging managerial or administrative functions so as to exclude him from the purview of the Act,” it observed.

As such, the Court upheld the award passed by the Commissioner and dismissed the insurer's appeal.

Appearance: Mr. Pankaj Seth, Advocate for Appellant; Mr.Sameer Nandwani, Advocate for respondent No.1

Case title: National Insurance Company Ltd v. Yashpal & Ors.

Citation: 2026 LiveLaw (Del) 714

Case no.: FAO 493/2016

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