When a person employs his brother as a driver of his vehicle, there is employer-employee relationship under the Workmens' Compensation Act and the insurance company is liable to compensate for his death in a road accident in the course of employment, the Supreme Court ruled in the case, T S Shylaja vs Oriental Insurance Co. In this case, a 20-year-old youth was driving his vehicle when a truck hit and killed him. His mother sought compensation and the Commissioner under the Act granted him Rs 4.48 lakh. However, the insurance company moved the Karnataka High Court arguing that the youth was employed by his brother and therefore there was no employer-employee relationship under the Act. The high court agreed with that and stated that the remedy is under the Motor Vehicles Act. The mother moved the Supreme Court which reversed the high court judgment. The court asked the insurance company to pay the compensation within three months with 12 per cent interest.
Article referred: http://www.business-standard.com/article/opinion/sc-resolves-arbitration-dilemma-114011900826_1.html
Article referred: http://www.business-standard.com/article/opinion/sc-resolves-arbitration-dilemma-114011900826_1.html
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