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Principal employer is liable to compensate a worker engaged by the contractor

In Executive Engineer, PWD v. Commissioner, Workmen’s Compensation, Respondent 2  was engaged as a labour by the contractor, Respondent 3 who worked with the appellant and suffered permanent injury. The compensation awarded buy the Commissioner Workmen Compensation Act was challenged by thhe appellant contending inter alia that there was no privity of contract between him and Respondent 2, therefore, liability to compensate him could not be fastened on the appellant.

The J & K High Court, after duly considering the submissions made by the appellant, observed that his contention was fallacious. The Court noted that it was undisputed that Respondent 3, who had engaged Respondent 2 as a labour, worked with the appellant as a contractor. Respondent 2 was engaged to carry out the work of the appellant. Furthermore, the job of repairing the iron rod, that was the direct reason for the injury, was assigned to Respondent 2 by the Junior Engineer of the appellant. The Court categorically stated that the appellant being a principal employer was liable to pay compensation to Respondent 2 on account of permanent disablement suffered by him during and in the course of his employment with the appellant. In such circumstances, the High Court dismissed the appeal.

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