Citation : 2026 Latest Caselaw 2527 Guj
Judgement Date : 21 April, 2026
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Reserved On : 16/03/2026
Pronounced On : 21/04/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 768 of 2024
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2024
In R/FIRST APPEAL NO. 768 of 2024
With
CIVIL APPLICATION (FOR WITHDRAWAL/DISBURSEMENT
OF AMOUNT) NO. 2 of 2024
In R/FIRST APPEAL NO. 768 of 2024
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE J. C. DOSHI Sd/-
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Approved for Reporting No Yes
No
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HI SPEED TURBO COMPANY THROUGH PROP. SHARADBHAI
PARSOTTAMBHAI AMIN
Versus
LH OF DECD JAYESHBHAI KANJIBHAI MAKWANA
MANJULABEN WD/O JAYESHBHAI KANJIBHAI MAKWANA &
ORS.
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Appearance:
MR PRABHAKAR UPADYAY(1060) for the Appellant(s) No. 1
MR UT MISHRA(3605) for the Defendant(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
CAV JUDGMENT
1. This is a first appeal under Section 30 of the Employees Compensation Act, 1923 (hereinafter referred to as the "EC Act") challenging the judgment and award dated
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09.11.2022 passed below Exhibit-73 by the learned Employees Compensation Commissioner, Anand in W.C. (Fatal) Application No.1 of 2018.
2. The brief facts of the case in a nutshell are as under:-
2.1 On 20.02.2017, deceased - Jayeshbhai Kanjibhai Makwana, who was working as a part-time helper in High Speed Turbo Company (Original defendant No.1), was called by Mr. Harshadbhai Bhikhabhai Makwana(Defendant No.2) in the Marketing office of the defendant No.1 to attend the repairing call of Alpeshbhai Manubhai Shah (Defendant No.3).
2.2 Pursuant to the instructions received from defendant No.2, deceased went with defendant No.3 to repair the compression machine attached with the machine for the purpose of tobacco removal. During the course of repairing, suddenly the air pressure increased and the valve as well as iron-pipe detached from the compression machine and flung on the face and body of the deceased, due to which the deceased received multiple injuries. The defendant No.3 took him to Sanjeevni Hospital, but since there was no Medical Officer available, by calling 108 ambulance service, he took deceased to Irish Hospital for onward shifting to Ahmedabad Civil Hospital, where deceased died on the same day, i.e. on 20.02.2017.
2.3 In the background of the aforesaid facts, the widow and son of the deceased filed the W.C. (Fatal) Claim Application No.1 of 2018 before the Workmen Compensation Commissioner, Anand under the provision of the "EC Act" pleading that,
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deceased was given salary of Rs.8,000/- per month by the defendant No.1, but no salary slip or ID card was provided and since the deceased died during the course of employment, the defendant No.1 is responsible for paying the compensation to the claimants.
2.4 It was further pleaded that the deceased was 35 years old at the time of the accident and considering the factor of 197.06, the petitioners are entitled to the compensation of Rs.7,88,240/- along with the interest and penalty.
2.5 The learned Workmen Compensation Commissioner, Anand by impugned judgment and award dated 09.11.2022 directed the appellants herein to pay Rs.7,88,240/- with yearly interest of 12% from the date of the petition i.e.11.02.2017, till the realization and the funeral charge of Rs.5,000/- was granted and Rs.78,824/- was granted towards the penalty being 10% amount of the total of compensation.
2.6 Being aggrieved, defendant No.1 filed the present appeal under Section 30 of the "EC Act".
3. Heard learned advocate Mr. Prabhakar Upadyay appearing for the appellant and learned advocate Mr. Umang Raval for learned advocate Mr. U.T. Mishra for the defendant No.1 - original claimants. None remained present for the other respondents.
3.1 Learned advocate Mr. Prabhakar Upadyay submitted that, except bare statements of the claimants, no evidence is
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produced on record to show that the deceased was an employee of the defendant No.1.
3.2 He would further submit that the accident admittedly took place within the premises of the defendant No.3, which gives the presumption that the deceased was an employee of the defendant No.3. He would further submit that the presumption would be strengthened on the ground that defendant No.3 paid Rs.10,000/- to the deceased having received the injuries.
3.3 Learned advocate Mr. Prabhakar Upadyay further submits that defendant No.1 has produced the salary registers and other documentary evidence on record to establish that the deceased was not an employee of the defendant No.1 - Company.
3.4 In addition to aforesaid submission, learned advocate Mr. Prabhakar Upadyay submits that the pleading of claimants suggests that the deceased was working as a full-time Helper with some other company. On the fateful day, he met to defendant No.2 and demanded a loan of Rs.100/-. He would further submit that, as per the evidence, the defendant No.2 was claimed to be a Marketing Manager of the defendant No.1 - company had directed him to do some work for Rs.100/-.
3.5 Learned advocate Mr. Prabhakar Upadyay submits that even, it is not proved on record that the defendant No.2 is the Marketing Officer of the defendant No.1 - company, in that circumstances also, since there is absence of an employee/employer relationship between the parties as also claimants hopelessly failed to prove the same, the assessment of
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compensation and grant thereof by the Workmen Compensation Commissioner is totally illegal, unjust and against the settled principle of law.
3.6 It is also submitted by learned advocate Mr. Prabhakar Upadyay that the claimant No.2 - Minor Hiren is not the son borne out of the wedlock between Manjulaben and deceased - Jayeshbhai. He would further submit that, after the death of deceased - Jayeshbhai, his Widow - claimant No.1 - Manjulaben married to her Dier (Brother-in-law) and thereafter the son was born. This factum itself says that the claimant No.1 is not a dependant and since claimant No.2 married after the death of her husband, she does not fall within the definition of 'dependant'. The learned Tribunal, again, did not decide the vital issue and thereby, fell into the error.
3.7 In the aforesaid submission, learned advocate Mr. Prabhakar Upadyay submits to admit and allow this appeal as the aforesaid argument contains substantial question of law.
4. Per contra, learned advocate Mr. Umang Raval referred to the Police statements recorded in the investigation of the accidental death Case No.4/2017 and submitted that the statement of Harshadbhai, statement of the deceased and other statements recorded during the investigation of the offence are sufficient enough to point a finger that the deceased was a part- time Helper of defendant No.1 - company and lost his life during and in course of the employment of defendant No.1. Therefore, the learned Workmen Commissioner has rightly assessed the compensation. Thus, he submitted to dismiss this first appeal.
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5. None of the other respondents remained present.
6. In background of the aforesaid arguments, at the outset, let me refer Section 30 of the "EC Act" as under:-
"30. Appeals.--(1) An appeal shall lie to the High Court from the following orders of a Commissioner, namely:--
(a) an order awarding as compensation a lump sum whether by way of redemption of a half- monthly payment or otherwise or disallowing a claim in full or in part for a lump sum; 7[(aa) an order awarding interest or penalty under section 4A;]
(b) an order refusing to allow redemption of a half-
monthly payment;
(c) an order providing for the distribution of compensation among the dependants of a deceased employee, or disallowing any claim of a person alleging himself to be such dependant;
(d) an order allowing or disallowing any claim for the amount of an indemnity under the provisions of sub- section (2) of section 12; or
(e) an order refusing to register a memorandum of agreement or registering the same or providing for the registration of the same subject to conditions:
Provided that no appeal shall lie against any order unless a substantial question of law is involved in the appeal and, in the case of an order other than an order such as is referred to in clause (b), unless the amount in dispute in the appeal is not less than ten thousand rupees or such higher amount as the Central Government may, by notification in the Official Gazette, specify:
Provided, further, that no appeal shall lie in any case in which the parties have agreed to abide by the decision of the Commissioner, or in which the order of the Commissioner gives effect to an agreement come to by the parties:
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Provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealed against.
(2) The period of limitation for an appeal under this section shall be sixty days.
(3) The provisions of section 5 of the Indian Limitation Act, 1963 (36 of 1963) shall be applicable to appeals under this section."
7. The proviso to Section 30 of the "EC Act" indicates in an appeal under Section 30, the High Court can interfere if the party is able to prove that the findings are perverse, in the sense that either of the findings are without any material on record or it is totally opposed to the material on record. The appellate Court i.e. High Court, has no jurisdiction to entertain the appeal unless same involves the substantial question of law. Mere difficulty to apply the facts to the law will not amount to a substantial question of law. Thus, the scope of appeal under Section 30 of the "EC Act" for maintaining the appeal against the judgment and award passed by the Commissioner is very limited. The language of the statute is clear and unambiguous that until a party challenging the judgment and award of the Workmen Commissioner establishes the involvement of substantial question of law, it cannot challenge the same in the appeal. The phrase 'substantial question of law' is also appearing in Section 100 of the Code of Civil Procedure (hereinafter referred to as 'the Code'). The Supreme Court in the case of Hero Vinoth v. Seshammal, reported in (2006) 5 SCC 545, has interpreted
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the phrase 'substantial question of law', as occurring in the amended Section 100 of "the Code", as under:-
"21. The phrase 'substantial question of law', as occurring in the amended Section 100 CPC is not defined in the Code. The word substantial, as qualifying 'question of law', means of having substance, essential, real, of sound worth, important or considerable. It is to be understood as something in contradistinction with-technical, of no substance or consequence, or academic merely. However, it is clear that the legislature has chosen not to qualify the scope of 'substantial question of law' by suffixing the words 'of general importance' as has been done in many other provisions such as Section 109 of the Code or Article 133(1)
(a) of the Constitution. The substantial question of law on which a second appeal shall be heard need not necessarily be a substantial question of law of general importance. In Guran Ditta v. Ram Ditta [(1927-28) 5I5 IA 235 : AIR 1928 PC 172] the phrase substantial question of law as it was employed in the last clause of the then existing Section 100 CPC (since omitted by the Amendment Act, 1973) came up for consideration and their Lordships held that it did not mean a substantial question of general importance but a substantial question of law which was involved in the case.
In Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] the Constitution Bench expressed agreement with the following view taken by a Full Bench of the Madras High Court in Rimmalapudi Subba Rao v. Noony Veeraju [AIR 1951 Mad 969 : (1951) 2 MLJ 222 (FB)] : (Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] , SCR p. 557) 'When a question of law is fairly arguable, where there is room for difference of opinion on it or where the Court thought it necessary to deal with that question at some length and discuss alternative views, then the question would be a substantial question of law. On the other hand if the question was practically covered by the decision of the highest court or if the general principles to be applied in determining the question are well settled and the only question was of applying those principles to the particular fact of the case it would not be a substantial question of law.' "
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Therefore, in absence of the question, which is not decided previously or the question, which involves a debate, it cannot be claimed as a substantial question of law.
8. Section 3 of the "EC Act" specifies Employer's liability for Compensation. In order to attract the provision of Section 3, the three conditions must be fulfilled. Firstly, a personal injury or a death. Secondly, accident and thirdly, arising out of or in course of employment. The coordinate Bench in case of Bhimaben Wd/o. Bhagoji Raghoji Uttekar & Ors. v. Nanubhai Ramanlal Shah & Anr., First Appeal No.1035 of 2009 in regards to the purpose of the Act, observed as under:-
"4....However, deceased fell down from the structure of the board which is an accident. This admission is enough to establish a relationship of employee and employer between the deceased and opponent No. 1. However, it is contended that the learned Commissioner has not considered this important admission in the written-statement and has given undue weightage on the lacunas found in the oral deposition of claimant No. 1, as well as, the witness. It is further contended that in absence of any contrary evidence led by opponent No. 1, the admission made in the written- statement, is sufficient to establish relationship. The injury has arisen out of and in the course of employment. Except above, no other submissions were canvassed by learned advocate for the appellants.
5.... It is well settled proposition of law, that the Act is a piece of social security and welfare legislation. The dominant purpose of the Act is to protect the workmen and the provisions of the Act are not to be interpreted in a narrow manner so as to exclude the employee from compensation. Strict proof, as contemplated under the Indian Evidence Act, 1872 is not expected while deciding the application under the Employee's Compensation Act."
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9. The Supreme Court in the case of Daivshala & Ors. v. Oriental Insurance Company Ltd. & Anr., reported in 2025 Live Law (SC) 748, held that both EC Act and ESI Act are beneficial piece of legislations. The Supreme Court further explained the interpretation of accident arising out of and in course of employment. Para 22 and 23 of which reads as under:-
"22. The EC Act was enacted to provide for the payment by certain classes of employers to their employees of compensation for injury by accident. Section 3, as set out earlier, provides that if personal injury is caused to an employee by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of the Act. Section 4 sets out that where death results from the injury an amount equal to 50 per cent of the monthly wages of the deceased employee multiplied by the relevant factor ought to be paid.
23. The EC Act is also a beneficial piece of legislation. In 2016, this Court in Jaya Biswal & Others v. Branch Manager, IFFCO Tokio General Insurance Company Limited & Another, (2016) 11 SCC 201, while holding that the EC Act was a social welfare legislation meant to benefit the workers and their dependents and to give the employees a sense of security held as under: -
"20. The EC Act is a welfare legislation enacted to secure compensation to the poor workmen who suffer from injuries at their place of work. This becomes clear from a perusal of the preamble of the Act which reads as under:
'An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident." This further becomes clear from a perusal of the Statement of Objects and Reasons, which reads as under:
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'... The growing complexity of industry in this country, with the increasing use of machinery and consequent danger to workmen, along with the comparative poverty of the workmen themselves, renders it advisable that they should be protected, as far as possible, from hardship arising from accidents.
An additional advantage of legislation of this type is that, by increasing the importance for the employer of adequate safety devices, it reduces the number of accidents to workmen in a manner that cannot be achieved by official inspection. Further, the encouragement given to employers to provide adequate medical treatment for their workmen should mitigate the effects to such accidents as do occur. The benefits so conferred on the workman added to the increased sense of security which he will enjoy, should render industrial life more attractive and thus increase the available supply of labour. At the same time, a corresponding increase in the efficiency of the average workman may be expected.'
21. Thus, the EC Act is a social welfare legislation meant to benefit the workers and their dependants in case of death of workman due to accident caused during and in the course of employment should be construed as such."
(Emphasis supplied)
10. The core issue raised by learned advocate Mr. Prabhakar Upadyay that the deceased was not the employee of the appellant - original defendant No.1 and no evidence has been produced by the claimant to demonstrate and prove that the deceased was an employee of the defendant No.1 - company; however, I am at a loss to accept such submission. The claimants have produced police papers he has received under the RTI Act. The police papers, though not exhibited, the veracity and genuinity of those documents has not been questioned by the other side.
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11. At Mark-1/7, the claimants have produced the statement of deceased - Jayeshbhai. In his statement, he has categorically stated that he was working as a Helper in the Amin Engineering and was doing a part-time job with the original defendant No.1 - company and on the fateful day, when he reached to his job at High Speed Turbo Company, at around 8'o clock, the Marketing Officer - Harshad Makwana met him and told that defendant No.3 has lodged a repairing call and directed him to go along with the defendant No.3 to repair the compressor. Following the command, deceased went along with Alpeshbhai and when he was repairing the compressor at the premises for defendant No.3 - Alpeshbhai, due to increase in the air pressure, the compressor was blasted and deceased received the fatal injuries. On the happening of the accident, Alpeshbhai immediately called Harshadbhai and they both took him to the hospitals for the treatments. Harshadbhai's statement was also recorded by the Police, which is produced at Mark-1/11 and which is supporting the statement of deceased - Jayeshbhai.
12. If we peruse the proceeding taken place before the learned Workmen Commissioner, the defendant No.1 initially did not file the objection to the claim petition till the widow of the deceased entered into the witness-box. However, thereafter, having came to know about the case of the claimant, the defendant No.1 - company not only filed its written statement, but also filed some documents i.e. copy of the register, to show and demonstrate that the deceased was not an employee. Perhaps with view to wipe out the core of claimant. There is all possibility that defendant has created documents, register, etc. to negate the core of the claimants.
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13. On perusal of the evidence placed before the learned Workmen Commissioner, it appears that the widow of the deceased was put to question by the learned advocate appearing for the defendant, particularly defendant No.3. In reply to such question, it is established that deceased was an employee of the defendant No.1 - company. The defendant No.1, who in a hurry to disown the deceased as an employee, also disowned that Harshad Makwana was its Marketing officer; however, did not examine Harshad Makwana to buttress this aspect. The witness
- Mr. Bhaskar Ambalal Patel examined by the defendant No.1 - company at Exhibit-56 tried to establish that the name of the deceased is not appearing in the salary register of the defendant No.1 - company, meaning thereby that the deceased was not the employee of the defendant No.1 - company, did not find his own name in the salary register and could not answer it, except saying that salary register is only maintained for the workers and not for the executives. Such deposition assumed the importance on the aspect that, he being an executive, was also not provided the ID Card. Thus, what could be appearing that the defendant No.1 - company, in order to disown the deceased as an employee, attempted all possible acts and raised much hue and cry, but that all appears to be a brought up attempt on the part of the defendant No.1 - company and such evidence cannot fill the requirement of true evidence. The defendant No.3 and claimant, both succeeded in proving that deceased was an employee of the defendant No.1 - company.
The statement recorded during the police investigation have been questioned by learned advocate Mr. Prabhakar
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Upadyay on the ground that the statement recorded by the Police have no evidentiary value.
14. The submission would have been attractive, provided that the Court is conducting the criminal trial, wherein in view of Section 162 of the Code of Criminal Procedure (hereinafter referred to as 'the Cr.PC'), the statement made by any person to the Police officer in the course of investigation shall have no evidentiary value, but in the present case, such statements are pressed into service in a matter under the "EC Act".
15. In view of Section 35 of the Evidence Act, 1872 (hereinafter referred to as the 'Evidence Act''), when a public servant in discharge of his official duty, pertaining to fact and issue and being part of official record, has recorded something, it is admissible. Section 162 of 'the Cr.PC' has been enacted for the benefit of the accused. The bar created by the statute is a limited one and has no application if the statement made before a Police officer in the course of investigation under Chapter-12 is to be used in any proceedings, other than an inquiry or trial, or in respect of an offence other than that which was under
investigation at the time when such statement was made. Thus, such Section does not affect the civil proceedings or a proceeding under Article 32 or 226 of the Constitution of India and as such, a statement made before a Police officer during investigation can be produced or used in evidence in a writ petition under Article 32 or 226 of the Constitution of India, provided it is relevant under the 'Evidence Act'. In Khatri & Ors. (IV) v. State of Bihar & Ors. reported in (1981) 2 SCC 493.
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16. In the present case, there are two Police statements, one of deceased and another of Harshad Makwana. The statement of the deceased recorded by the Police officer is as to the cause of death. In this statement, he categorically stated that how he was directed to conduct the repairing call of the defendant No.3, how Mr. Harshad Makwana directed him to conduct the repair call. He further stated that he was working with defendant No.1 - company as a part-time Helper and in which way the accident took place. The deceased was expired due to the accidental injury he has received from the repairing work of the compressor. Thus, the statement made by the deceased to the Police equates with the requirement of Section 32 of the 'Evidence Act' and became the relevant and admissible evidence as the dying declaration of the deceased.
17. The statement of Harshad Makwana has not been impeached by the defendant No.1 - company. He has not been called as a witness to deny what is recorded in the Police statement. As observed hereinabove, in view of Section 35 of the 'Evidence Act', this statement comes from the record maintained by the Public Officer. Thus, both the statements are sufficient to prove the root question raised by the appellant.
18. As far as calculation of the compensation based upon the statutory formula is concerned, learned advocate Mr. Prabhakar Upadyay did not raise any argument.
19. In the aforesaid circumstances, I find that there is no substantial question of law involved in the matter. What has been argued by learned advocate Mr. Prabhakar Upadyay is related to the facts of the case and nothing more than it.
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20. There is no debatable issue or previously undecided
issue involved in the matter. In view of above, this appeal stands
dismissed. The impugned judgment and award is upheld.
21. The Workmen Commissioner is directed to release the amount of compensation in favor of the claimants by apportioning it in accordance with law amongst the claimants.
22. Connected Civil Applications do not survive.
23. Record and Proceedings, if any, to be sent back to the concerned Court forthwith.
Sd/-
(J.C. DOSHI, J.) Raj
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