{"id":376797,"date":"2026-02-26T10:30:45","date_gmt":"2026-02-26T05:00:45","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=376797"},"modified":"2026-03-05T10:42:03","modified_gmt":"2026-03-05T05:12:03","slug":"bombay-high-court-affirms-compensation-rights-for-casual-driver","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/26\/bombay-high-court-affirms-compensation-rights-for-casual-driver\/","title":{"rendered":"Bombay HC affirms compensation rights for casual drivers under Employees’ Compensation Act"},"content":{"rendered":"
\n

Bombay High Court:<\/span> In an appeal under the Employees’ Compensation Act, 1923<\/a> (Employees’ Compensation Act), a Single Judge Bench of Jitendra Jain<\/span>, J., held that even brief engagement as a driver is sufficient to establish an employer-employee relationship. The Court emphasised that the FIR lodged by the vehicle owner described the deceased as a “driver”, which was adequate to prove employment. The Court further held that the absence of a written contract could not defeat legitimate claims under welfare legislation. Since the insurer’s objection based on Motor Accident Claims Tribunal (MACT) proceedings was found to be untenable, the Court directed that compensation be paid to the dependents within eight weeks.<\/p>\n

Background<\/h3>\n

The deceased was engaged as a driver for a short period and met with a fatal accident on 29 March 2009 while driving the vehicle owned by the vehicle owner. A legal notice was issued by the dependents seeking compensation, but no reply was received, which led to the filing of an application under the Employees’ Compensation Act. The Labour Commissioner rejected the claim on 9 May 2012, holding that the applicants had failed to prove the employer-employee relationship.<\/p>\n

The appellants argued that the FIR lodged by the vehicle owner clearly described the deceased as a “driver”, thereby establishing the relationship. On the other hand, the Insurance Company contended that the accident was caused by the negligence of the deceased, that no documentary proof of employment was produced, and that the burden lay on the applicants to prove the relationship. It was further argued that the absence of a written contract justified rejection of the claim.<\/p>\n

Analysis and Decision<\/h3>\n

The Court emphasised that the FIR lodged by the vehicle owner, wherein the deceased was referred to as a “driver”, was crucial. The Court noted that the statement given at the first instance by a person at the time of lodging the FIR is the best piece of evidence in such cases, in the same way a dying declaration is at the time of death of a person. The Court further observed that if the deceased was a friend or relative of the vehicle owner, the vehicle owner would not have addressed the deceased as a “driver” before the police authorities when he expressly stated his relationship with another passenger. The contents of the FIR, when read as a whole, cannot be doubted.<\/p>\n

The Court highlighted that a driver who is not regularly employed, or even if he is regularly employed, will rarely have a written contract unless hired by a corporate entity. The Court noted that in the present case, where an individual vehicle owner had hired and availed the services of the deceased to drive the vehicle to Rajasthan on an urgent basis for a short duration, there could never be a written contract or agreement between the parties to prove the relationship of employer and employee.<\/p>\n

The Court emphasised that under the Employees’ Compensation Act, liability can be imposed on the owner and the insurance company jointly and severally. The Court noted that the legal notice issued by the appellants to the vehicle owner on 11 August 2009 seeking compensation was never replied to, and the only obvious conclusion for not replying was to avoid financial liability. The Court further noted that to absolve himself from liability, the vehicle owner filed a reply to the application on 14 February 2011, almost two years after the incident and notice, denying the employer-employee relationship.<\/p>\n

The Court referred to Section 2(dd<\/span>)<\/a>, Employees’ Compensation Act<\/a>, which defines “employee” to mean a person recruited as a driver, helper, mechanic, cleaner, or in any other capacity in connection with a motor vehicle. The Court highlighted that Section 2(dd<\/span>)<\/a>, Employees’ Compensation Act<\/a> does not require a written contract or agreement between the employer and employee; what is material is “recruited as driver”, and the phrase “recruited” covers even a driver hired for a shorter duration.<\/p>\n

Further, the Court noted that Section 2(dd<\/span>)(iii<\/span>) read with Entry (xxv<\/span>)<\/a> of Schedule II<\/a>, Employees’ Compensation Act<\/a> expands the definition of “employee” to a person employed as a driver, and it is expressly provided in clause (iii<\/span>) of Section 2(dd<\/span>)<\/a>, Employees’ Compensation Act<\/a> that a contract can be implied or oral. The Court observed that the phrases “employed as a driver” and “recruited as driver” emphasise the nature of work for which a person is hired.<\/p>\n

The Court also emphasised that the definition focuses on the act of employment or recruitment and not the duration for which a person is employed or recruited. It was noted that the expression “employed” has at least two known connotations, but as used in the definition, the context indicates that it is used in the sense of a relationship brought about by express or implied contract of service, in which the employee renders service for which he is engaged by the employer, and the latter agrees to pay him in cash or kind as agreed between them or as statutorily prescribed.<\/p>\n

The Court highlighted that it is well established that the fact an individual is entirely free to work or not, and owes no contractual obligation to the person for whom the work is performed when not working, does not preclude a finding that the individual is a worker, or indeed an employee, at the time when he or she is working. The Court emphasised that merely because the period for which the driver was recruited or employed is not mentioned, that cannot be a ground to reject the claim. The Court further noted that merely because the Insurance Company thinks that MACT would not have given any relief cannot preclude the applicants from making an application under the Employees’ Compensation Act. Insofar as the civil suit is concerned, the Court held that there is a bar to making an application under Section 3(5)<\/a>, Employees’ Compensation Act<\/a> if the civil suit is filed.<\/p>\n

The Court also referred to Mahendra Shah<\/span> v. Baldev Singh<\/span>, 2011 SCC OnLine Raj 2775<\/a>, wherein it was held that a person employed on a daily basis would also be covered by the definition of workman. Accordingly, the Court, while allowing the appeal, quashed the Labour Commissioner’s order. The Court further directed that compensation be calculated within 8 weeks of the applicants filing an application with the present order.<\/p>\n

[Shakuntala Tilakdhari Gupta<\/span> v. Jawaharlal R. Gupta<\/span>, 2026 SCC OnLine Bom 1495<\/a>, decided on 18-2-2026<\/span>]<\/p>\n\n

Advocates who appeared in this case:<\/p>\n

For the Appellants:<\/span> Varsha Nichani a\/w Roshil Nichani<\/p>\n

For the Respondents:<\/span> Sanjay Krishnan i\/by Leges Consultus<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Merely because the period for which the driver was recruited or employed is not mentioned, that cannot be a ground to reject the claim.”<\/p>\n","protected":false},"author":67537,"featured_media":376799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2569,68438,99585,19811,54010,67938,99583,99584,99582,33010],"class_list":["post-376797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Bombay_High_Court","tag-compensation-claim","tag-driver-accident-compensation","tag-employees-compensation-act","tag-employer-employee-relationship","tag-justice-jitendra-jain","tag-labour-commissioner-order-quashed","tag-oral-contract-employment","tag-short-term-driver-engagement","tag-welfare-legislation"],"yoast_head":"\nBombay High Court affirms compensation rights for 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Appellants filed a claim based\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":220523,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/05\/hp-hc-%e2%94%82-employees-compensation-act-service-of-show-cause-notice-to-the-employer-before-imposition-of-penalty-is-mandatory\/","url_meta":{"origin":376797,"position":1},"title":"HP HC | Employees Compensation Act: Service of show-cause notice to the employer before imposition of penalty is mandatory","author":"Bhumika Indulia","date":"October 5, 2019","format":false,"excerpt":"Himachal Pradesh High Court: Tarlok Singh Chauhan, J. partly allowed the appeal of filed by an employer challenging the compensation granted to a deceased employee\u2019s wife under the Employees Compensation Act, 1923 on the ground that before passing a penalty order against the employer, a reasonable opportunity must have been\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":220958,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/17\/all-hc-employees-compensation-act-is-a-social-welfare-legislation-principles-of-liberal-construction-to-be-applied-while-interpretation-thereof\/","url_meta":{"origin":376797,"position":2},"title":"All HC | Employee’s Compensation Act is a social welfare legislation, principles of liberal construction to be applied while interpretation thereof","author":"Bhumika Indulia","date":"October 17, 2019","format":false,"excerpt":"Allahabad High Court: Dr Yogendra Kumar Srivastava, J. dismissed a writ petition challenging the order passed by the Employees Compensation Commissioner\/Assistant Labour Commissioner, U.P. Gorakhpur, and the Bench highlighted a very significant point that, \u201cEmployees Compensation Act, 1923 is a piece of social security and welfare legislation with its dominant\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":268500,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/06\/16\/employee-seeking-disability-compensation-under-employees-compensation-act-in-case-of-no-appointment-letter-identity-card-attendance-card-etc-was-issued-delhi-hc-decides\/","url_meta":{"origin":376797,"position":3},"title":"Is an Employee entitled to disability compensation under Employees\u2019 Compensation Act in absence appointment letter, identity card, attendance card, etc. ? Delhi HC decides","author":"Editor","date":"June 16, 2022","format":false,"excerpt":"Delhi High Court: Manoj Kumar Ohri J. dismissed the petition as the employer-employee relationship was established by a witness before the court and strict rules of evidence are not applicable in such cases.\u00a0 \u00a0\u00a0 The facts of the case are such that Respondent 1 (hereinafter, referred to as \u2018the workman\u2019)\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":242643,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/22\/chh-hc-appeal-under-s-30-of-employees-compensation-act-1923-is-to-be-entertained-only-on-a-question-of-law\/","url_meta":{"origin":376797,"position":4},"title":"Chh HC | Appeal under S. 30 of Employees’ Compensation Act, 1923 is to be entertained only on a question of law \u00a0","author":"Editor","date":"January 22, 2021","format":false,"excerpt":"Chhattisgarh High Court: A Division Bench of P.R. Ramchandra Menon and Parth Prateem Sahu JJ., dismissed the appeal being devoid of merits. The facts of the case are such that one Rajendra Sharma was employed as Driver in the truck owned by non-applicant 1 and insured by non-applicant 2 who\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":377605,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/03\/07\/bom-hc-disability-certificate-issued-by-non-treating-doctor\/","url_meta":{"origin":376797,"position":5},"title":"Bombay HC: Employee\u2019s compensation claim cannot be denied solely because disability certificate was issued by non-treating doctor","author":"Soumya Yadav","date":"March 7, 2026","format":false,"excerpt":"\u201cA qualified medical practitioner who has not treated the injured can always give evidence on the basis of the medical reports of the injured and give a certificate on the loss of earning capacity or disability.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"disability certificate issued by non-treating doctor","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/disability-certificate-issued-by-non-treating-doctor.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/disability-certificate-issued-by-non-treating-doctor.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/disability-certificate-issued-by-non-treating-doctor.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/03\/disability-certificate-issued-by-non-treating-doctor.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/376797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67537"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=376797"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/376797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/376799"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=376797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=376797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=376797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}