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Delhi High Court Says Accident During Lunch Break at Worksite Covered Under Employee Compensation Act

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The Delhi High Court has ruled that an accident suffered by a worker during a lunch break at the worksite can still be treated as an accident arising out of and in the course of employment under the Employee’s Compensation Act. The Court held that taking a temporary break for meals does not automatically end the connection between the worker’s employment and an accident occurring at the workplace.

What is the Case?

The case involved a supervisor working at a construction site in Delhi. In 2010, an iron rod being carried by a mobile crane fell on him at the construction site. The accident caused serious injuries, and the worker eventually lost his left leg.

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The Commissioner under the Employee’s Compensation Act awarded the worker compensation of ₹7.86 lakh along with interest. National Insurance Company Ltd. challenged this compensation award before the Delhi High Court.

What Did National Insurance Company Argue?

National Insurance Company argued that the accident occurred when the worker was on his lunch break. According to the insurer, since the claimant was taking a break from work when the accident happened, his injuries could not be considered to have arisen out of or in the course of his employment.

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The insurance company also raised another objection regarding the worker’s designation. It argued that since the claimant was working as a supervisor, he did not fall within the definition of an “employee” under the Employee’s Compensation Act and was therefore not entitled to compensation under the law.

What Did the Delhi High Court Say?

Justice Manoj Kumar Ohri rejected the arguments raised by the insurance company. The Court noted that the accident admittedly occurred at the worksite and that the claimant was present there in connection with his employment. The High Court held that a temporary lunch or meal break does not, by itself, break the connection between employment and an accident.

The Court 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.”

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Therefore, the fact that the employee was on a lunch break at the time of the accident was not sufficient to deny him compensation.

Job Designation Alone Cannot Decide Eligibility

The Delhi High Court also rejected the argument that the claimant was not covered under the Act because he was designated as a supervisor. The Court explained that the designation given to an employee is not the deciding factor. Instead, the actual nature of the duties performed by the employee must be examined.

The Court found that apart from raising the argument that the claimant was a supervisor, no material had been produced to show that he was actually performing managerial or administrative functions that would exclude him from the protection of the Employee’s Compensation Act.

High Court Upholds ₹7.86 Lakh Compensation

The Delhi High Court ultimately upheld the compensation award passed by the Commissioner and dismissed the appeal filed by National Insurance Company Ltd. As a result, the worker remained entitled to receive ₹7.86 lakh as compensation along with applicable interest.

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Hellobanker Team

Hellobanker.in is India's leading banking and finance news portal. Our expert team covers banking policies, RBI updates, financial markets, and investment insights.
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