Third Party Cannot Be Directed To Pay Compensation Under Employees' Compensation Act Due To Alleged Negligence: Uttarakhand High Court
The Uttarakhand High Court has held that compensation under the Employees Compensation Act, 1923, can be fastened only upon the employer of the deceased employee and not upon a third party on the basis of alleged negligence. The Court observed that the Act provides for payment of compensation by employers to their employees and is unrelated to tortious liability.Justice Ravindra Maithani...
The Uttarakhand High Court has held that compensation under the Employees Compensation Act, 1923, can be fastened only upon the employer of the deceased employee and not upon a third party on the basis of alleged negligence. The Court observed that the Act provides for payment of compensation by employers to their employees and is unrelated to tortious liability.
Justice Ravindra Maithani was hearing an appeal filed by Uttarakhand Power Corporation Ltd. against an award passed by the Employees Compensation Commissioner, Rudraprayag. The claimant had sought compensation on account of the death of her husband, Dinesh Prasad Dimri, who was working as a Watchman at the Forest Guest House, Augustmuni. According to the claim, the deceased died due to electrocution on 21.10.2012 when he went to check why water was not running through the taps. The Commissioner awarded compensation of Rs. 4,15,480/- and recorded that the death had occurred due to the negligence of the Electricity Department.
While deciding the issue relating to compensation, the Commissioner held the Electricity Department responsible on the grounds that the death occurred due to electrocution. Aggrieved by this finding, Uttarakhand Power Corporation Ltd. preferred the appeal.
The substantial question of law framed by the Court was whether an award under the Employees' Compensation Act, 1923, could be passed against a person who was not the employer of the deceased. The appellant contended that the deceased was admittedly not its employee and that compensation, if payable, could only be awarded against the employer.
The Court observed that the Employees Compensation Act, 1923, was enacted to provide compensation by certain classes of employers to their employees for injury and accident. It held that liability under the Act cannot be fastened on any person other than the employer.
Since the deceased was admittedly employed by the Divisional Forest Officer at the relevant time, the Court held that compensation under the Act could not be awarded against Uttarakhand Power Corporation Ltd. merely because the death was alleged to have occurred due to electrocution.
“… the deceased Dinesh Prasad Dimri was under the employment of the respondent no.2. He died during the course of employment. Liability for such compensation under the provisions of the Act cannot be fastened on any other person other than the employer,” the Court observed.
Accordingly, the Court allowed the appeal and modified the award by directing that the compensation amount, along with interest, be paid by the Divisional Forest Officer and not by Uttarakhand Power Corporation Ltd.
Case Title: Uttarakhand Power Corporation Ltd. v. Smt. Bhagirathi Devi & Anr. [Appeal From Order No. 203 of 2014].
Citation: 2026 LiveLaw (UK) 68