# REGIONAL DIRECTOR, E.S.I. CORPN. AND ANR v. FRANCIS DE COSTA AND ANR

- **Citation:** [1992] 3 S.C.R. 23
- **Court:** Supreme Court of India
- **Decided:** 1992-05-05
- **Case number:** Civil Appeal No. 1174 of 1979
- **Bench:** K. Ramaswamy, B.P. Jeevan Reddy
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/regional-director-e-s-i-corpn-and-anr-v-francis-de-costa-and-anr-11547
- **Pages:** 47

## Headnote

A
B
_ '-
Employees' State Insurance Act, 1949: Sections 2(8), 51A, 51C, 51D,
-
75 and 76.
'Employment Injury'-Test to detennine-What is Expressions-'ln the C
course of employment' and 'Arising out of employment'-Scope of-Injury
caused to employee by Employer's lorry on public road while employee was
on way to join duty- Whether arises out of and in the course of employment.
'Employment lnjury'-Relief-Availability of remedy under General
Law of tort or unfler Special Law in other Acts-U'hether bars relief under D
E.S./. Act.
Doctrine of Coming in and Going from Work Place-Exceptions.
Maxim-'Eundo Morando, et Redeundo'-Meaning of.
Wordf and Phrases:
E
'Accident'-Meaning of.
Interpretation of Statutes-Social Legislation-Interpretation of.
Constitution of India, 1950: Articles 38,39,41 and 43.
F
Social Justic~orkers-R.ight to health and medical treatment.
'
The first-respondent was employed with J.P. Coats (P) Ltd., Koratty.
On June 26, 1971 while he was going on his bicycle to join duty, on the road G
leading to the factory at a distance of 1 K.M. the Company's lorry hit him
on left side or his body and knocked him down on the road. As a result or
the accident, he suffered severe injuries and ultimately the Insurance
Medical Officer certified that he was totally and permanently incapacitated to work in the factory. He laid a claim for the benefits before
the Regional Director, Employees' State Insurance Corporation which was H
23
24
SUPREME COURT REPORTS
[1992) 3 s.c;.R.
A
rejected. Thereupon be fded a claim before the Employees' Insurance
Court under Section 75 of the Employees' State Insurance Act, 1948
contending that since the injury was suffered by him while on the way to
bis duty, it is an 'employment injury'. The respondent Corporation contended that it is not so, inasmuch as the accident took place on a public
B
road. The Employees' State Insurance Court held in favour of the firstrespondent by holding that the respondent was going on the usual route
along which be passes and repass~s every day to and from the factory on
the cycle purchased by him from the advance given by the employer and
was not negligent in riding the cycle. Therefore, the injuries were caused
to him in an accident while in the course of bis employment and conseC quently be was entitled to the benefits under the Act. On appeal the High
Court confirmed the findings of the Employees' State Insurance Court.
Against the decision of the High Court an appeal was preferred in this
Court.
D
Referring the matter to a larger Bench, this Court,
HELD: Per K. RAMASWAMY, J. 1. The respondent was trekking
the road to attend to duty which found to be the accustomed route to reach
the factory and just few minutes before reporting to duty he was struck by
the truck resulting in the employment injury. It, therefore, occurred during
E
the course of bis employment and thereby be is entitiled to the amount as
compensation under the Act. [56 GH, 57-A]
2. In determing whether a given accident occurred in the course of
employee's employment, the factual picture as a whole must be looked at,
and any approach based on fallacious concept that any one factor is
F
conclusive must be rejected. The facts are of crucial importance, and the
addition to or subtraction of one factor in a given situation may tilt the
balance, whereas in another situation the addition or subtraction of the
same factor may make no difference. This, however, does not indicate that
there are no principles in the light of which a court can decide whether an
G employee was acting in the course or arising out of his employment at the
material time when the accident bad occurred. [36 D-E]
3. Literal construction of the phrase 'arising out of his employment'
conveys the idea that there must be some sort of connection between the
employment and the injury caused to a workman due to the accident. But
H it is wide enough to cover the case where there may not necessarily be a
J.
---Z,_
-
i.
E.S.I. CORPN. v. FRANCIS D

## Text

_Characters 0–39,814 of 115,640. This is a partial read: ask again with offset=39814 for what follows._

REGIONAL DIRECTOR, E.S.I. CORPN. AND ANR.
v.
FRANCIS DE COSTA AND ANR.
MAY 5, 1992
[K. RAMASWAMY AND B.P. JEEVAN REDDY, JJ.]
A
B
_ '-
Employees' State Insurance Act, 1949: Sections 2(8), 51A, 51C, 51D,
-
75 and 76.
'Employment Injury'-Test to detennine-What is Expressions-'ln the C
course of employment' and 'Arising out of employment'-Scope of-Injury
caused to employee by Employer's lorry on public road while employee was
on way to join duty- Whether arises out of and in the course of employment.
'Employment lnjury'-Relief-Availability of remedy under General
Law of tort or unfler Special Law in other Acts-U'hether bars relief under D
E.S./. Act.
Doctrine of Coming in and Going from Work Place-Exceptions.
Maxim-'Eundo Morando, et Redeundo'-Meaning of.
Wordf and Phrases:
E
'Accident'-Meaning of.
Interpretation of Statutes-Social Legislation-Interpretation of.
Constitution of India, 1950: Articles 38,39,41 and 43.
F
Social Justic~orkers-R.ight to health and medical treatment.
'
The first-respondent was employed with J.P. Coats (P) Ltd., Koratty.
On June 26, 1971 while he was going on his bicycle to join duty, on the road G
leading to the factory at a distance of 1 K.M. the Company's lorry hit him
on left side or his body and knocked him down on the road. As a result or
the accident, he suffered severe injuries and ultimately the Insurance
Medical Officer certified that he was totally and permanently incapacitated to work in the factory. He laid a claim for the benefits before
the Regional Director, Employees' State Insurance Corporation which was H
23
24
SUPREME COURT REPORTS
[1992) 3 s.c;.R.
A
rejected. Thereupon be fded a claim before the Employees' Insurance
Court under Section 75 of the Employees' State Insurance Act, 1948
contending that since the injury was suffered by him while on the way to
bis duty, it is an 'employment injury'. The respondent Corporation contended that it is not so, inasmuch as the accident took place on a public
B
road. The Employees' State Insurance Court held in favour of the firstrespondent by holding that the respondent was going on the usual route
along which be passes and repass~s every day to and from the factory on
the cycle purchased by him from the advance given by the employer and
was not negligent in riding the cycle. Therefore, the injuries were caused
to him in an accident while in the course of bis employment and conseC quently be was entitled to the benefits under the Act. On appeal the High
Court confirmed the findings of the Employees' State Insurance Court.
Against the decision of the High Court an appeal was preferred in this
Court.
D
Referring the matter to a larger Bench, this Court,
HELD: Per K. RAMASWAMY, J. 1. The respondent was trekking
the road to attend to duty which found to be the accustomed route to reach
the factory and just few minutes before reporting to duty he was struck by
the truck resulting in the employment injury. It, therefore, occurred during
E
the course of bis employment and thereby be is entitiled to the amount as
compensation under the Act. [56 GH, 57-A]
2. In determing whether a given accident occurred in the course of
employee's employment, the factual picture as a whole must be looked at,
and any approach based on fallacious concept that any one factor is
F
conclusive must be rejected. The facts are of crucial importance, and the
addition to or subtraction of one factor in a given situation may tilt the
balance, whereas in another situation the addition or subtraction of the
same factor may make no difference. This, however, does not indicate that
there are no principles in the light of which a court can decide whether an
G employee was acting in the course or arising out of his employment at the
material time when the accident bad occurred. [36 D-E]
3. Literal construction of the phrase 'arising out of his employment'
conveys the idea that there must be some sort of connection between the
employment and the injury caused to a workman due to the accident. But
H it is wide enough to cover the case where there may not necessarily be a
J.
---Z,_
-
i.
E.S.I. CORPN. v. FRANCIS DE COSTA
25
direct connection of the workman. There may be circumstances tending to A
show that the workman received personal injury due to the accident that
arose during the course of or out of his employment. It would not mean
that personal injury only must have resulted from the mere nature of the
employment, nor it be limited to cases where the personal injury is
referable to duties to which the employee has to discharge. The phrase B
'arising out of the employment' applies to employment as such, to its
nature, its condition, its workman is brought within the zone of danger
and resultant injury, disease or death. In the context of the claims of the
labour for social justice under welfare legislation, the principle is that the
employer and the employees are so inter-related and depend on each other,
than itis in the interest of each that the other should survive, and it is in C
the interest of society that both should be kept fuctioniong in harmony
with each other. The expression 'arising out or, therefore, requires the
assistance of causal connection between the employment and the accident.
The employment is the cause and the accident is the effect. The causal
relationship between employment and the. accident does not logically D
necessitate direct or physical connection. It may be of various steps,
namely, direct, physical, approximate, indirect or incidental.
[33 GH, 34-A-D]
4. As a general rule the employment does not begin until the
employee has reached the place of work. The ambit, scope or scene of his E
duty does not continue after he has left the place and the period of going
and returning are excluded. But duty is not confined to the actual performance of work, it also applies when it is reasonably connected or incidental
to the work. When the workman proceeds on a public road to his work
place or factory which is the accustomed road or route, the proximity.of F
the place of accident, time and the obligation to report to duty are relevant
and material facts to be kept in mind. (38-F]
S. The doctrine of coming in and going from work place is subject to
reasonable extension. It is common knowledge that the home is the
employee's base from which it is his duty to start for work. When an G
employee travels by direct route from his home to the place of work but
for that he has no occasion to traverse the way though private/public road
way is the normal or agreed or accustomed route to reach the work place,
ht must be treated to be travelling in the course of bis emplojment as
incidental to join the duty or leaving the work place. (54 D-E]
H
A
B
26
SUPREME COURT REPORTS
(1992) 3 s.c.R:
6. The motive to use public or private transport or route to reach
the place of accident is not relevant. The employee may use the place,
publi~ road or trans.,ort services as usual course of means of attending to
o~going from the place of work, office or factory. The test is whether the
employee has exposed to a particular risk by reason of his employment or
whether he took the same risk as is incurred by any other public using the
public way otherwise then his employment. (54 F-G]
7. When a workman walks, rides the bicycle etc. along the public
road/street to get to his work, his right to walk does not spring, undoubtedly, from employment, and he also may exercise it as a member of the
C public. Nevertheless the workman too uses the public/permitted private
way as access/means to attend to duty. The question whether he had
encountered the danger or the accident exercising his right and to be at
the place of incident as a member of the public or as his integral course
of employment must always be born in mind. While as a member of the
D public he may have a right to walk or ride a cycle, drive a car etc. but while
walking or crossing the road/driving to reach the place of work or duty he
encounters the danger or the accident, which he would not have encountered but for that employment, then it must be incidental to his
employment. The motive which induces the employee to do a thing is not
material. His motive to go by a particular route is also immaterial, whether
E
it was to save time or to save himself from trouble. Whether the place at
which the injury/death occurred was on the only route or at least the
normal/accustomed route which the employee must traverse to reach the
place of work and became the hazard of the employment is also relevant
fact. The fact that the risk is common to all mankind does not prove that
F
the accident had not arisen out of employment. [54H, 5SA-E]
8. Sections SIA and SIC of the Act give statutory presump·
lions/grounds as to when an accident happen while travelling i9 an
employer's transport, etc. The Act intends to reiterate the law declared by
G this Court, apart fr"m creating some statutory presumptions. But it is no
corollary to conclude that an accident arising out of and in the course of
employment, in any other way, by necessary implication, should stand
excluded. To the extent covered under Sections SIA to SID by statutory
amendment stands incorporated in the Act but in other respects the .court
has to consider whether the accident had arisen out of and in the course
H of employment, dehors the statutory presumptions etc. provided in Sec-
>-
.,.....
E.S.I. CORPN. v. FRANCIS DE COSTA
27
).._
1 tions 51A to 510. (55 F-H, 56 A-BJ
A
Gian Devi Anand v. Jeevan Kumar & Ors., (1985) Suppl. 1 S.C.R. 1,
referred to.
9. The contention that the Motor Vehicles Act provides the remedy B
for damages for an accident resulting in death of an injured person and
that, therefore, the remedy under the Act cannot be availed of lacks force
'
or substance. The general law of tort or special law in Motor Vehicles Act
or Workman Compensation Act may provide a remedy for damages. The
coverage of insurance under the Act in an insured employment is in
addition to but not in substitution of the above remedies and cannot on c
that account be denied to the employee. [56 C-EJ
K Bharati Devi v. G./.C./., A.I.R 1988 A.P. 361, referred to.
~>-
10. The Employees' State Insurance Act fastens in an insured D
employment statutory obligation on the employer and the employee to
contribute in the prescribed proportion and the manner towards the
welfare fund constituted under the Act - Sections 38 to 51 of the Act - to
provide sustenance to the workmen in their hours of need, particularly
when they become economically inactive because of a cause attributable to E
>
their employment or disability or death occurred while in employment. The
fact that the employee contributed to the fund out· of his hard earned wages
cannot but have a vital bearing in adjudicating whether the injury or
occupational disease suffered by an employee is an employment injury. The
liability is based neither on any contract nor upon any act or omission by
tlie employer but upon the existence of the relationship which employer F
bears to the employment during the course of which the employee had been
.. ..J...
injured. (33 D-F]
,,
11. It falls foul from the mouth of the appellant, a trustee de son tort
who collected the premium from the employee and employer with a G
promise to expand it for disability, to attempt to wriggle out from the
promise or to deprive the employee the medical benefit for employment
_;-
injury covered by the insurance on the techni~lities. It is estopped to deny
medical benefit to the insured employee. Though the plea of estoppel was
not raised by the respondent yet it springs from the conduct of the
appellant. (56-FJ
H
28
SUPREME COURT Rf::PORTS
[1992] 3 S.C.R.
A
12. The Employees' State Insurance Act is a social security legisla-
.A,
tion. To promote justice and to effectuate the object and purpose of the
welfare legislation, broad interpretation should be given, even if it requires
a departul'li) from literal construction. The Court must seek light from
loadstar Articles 38 and 39 and the economic and social justice envisaged
B in the Preamble of the Constitution which would enliven meaningful right
to life of the worker under Article 21. [32-F]
13. Right to health, a fundamental human right stands enshrined in
socio-economic justice of our Constitution and the Universal Declaration
of Human Rights. Concomitantly right to medical benefit to a workman is
C
his fundamental right. Right to medical benefit is, thus, a fundamental
right to the workman. [32-H, 33-A]
14. De hors the human Right and Constitutional goal, the march of
jurisprudence emphasises that the law did not remain static but kept pace
with the changing social demands to secure socio-economic justice to
D workman. (54-B]
Saurashtra Salt Manufacturing Co. v. Bai Valu Raja & Ors., A.I.R.1958
S.C. 881; Mackinnon Mackenzie & Co. (P) Ltd. v. lbrahim Mahommed /ssak,
(1970) 1 S.C.R. 869; B.E.S. T. Undertaking, Bombay v .Agnes, (1964) 3 S.C.R.
E
930, referred to.
The Regional Director of the E.S./.C. v. L. Ranga Rao & Anr., (1981)
2 Karnataka Law Journal 197; Sadugunjaban Amrutlal & Ors. v. E.S./.
Corporation, 22 (1981) Gujarat Law Reporter, 773; Bhagubai v. Central
Railway, (1954) 2 L.L.J. 403; Regional Director, E.S.I. Corpn., Trichur v. K.
F
Krishnan, 1975 K.L.T. 712; Commissioner for the Port of Calcutta v. Mst.
Kaniz Fathema, A.I.R.1961Calcutta310, referred to.
Upton v. Great Central Railway Co., 1924 A.C. 302; Fitzgerald v. WJ.
Clarke & Son, 1008 (2) King's Bench 796; Mcdonald v. Steamship Co., 1902
(2) King's Bench 926; Titley & Co. v. Cattra/I, 1926 (1) King's Bench 488;
G Rosen v. S.S. Querous (Owners), 1933 Appeal Cases, 494; Simpson v. L.M.
& S. Railway Co., 1931 A.C. 351; Ne/ens Colliery Co. Ltd. v. Hewitson, 1924
-
Appeal Cases 59; Weaver v. Tredeger Iron & Coal Co. Ltd., 1940 ~ppeal
--'-i.
Cases 955; McCullum v. Northmbrian Shipping Co. Ltd., 1932 (147) Law
Times Report 361; Canadian Pacific Railway Co. v. Lockhart, 1942 Appeal
H Cases 591; Blee v. London & North Eastern Railway Co., 1937 (4) All
E.S.I. CORPN. v. FRANCIS DE COSTA
29
)._
England Reports 270; Noble v. Southern Railway Co., 1940 A.C. 583; Scott A
v. Seymour, (1941) 2 AH E.R. 717 (C.A.); Dover Navigation Co. Ltd. v. Graig,
1939 (4) All England Reports 558; Dennis v. White (AJ.) & Co., 1917 A.C.
479; In R. v. Industrial Injuries Commissioner, 1966 (1) All England Reports
97; Monco//as v. Insurance Officer and Ball v. Insurance Officer. (1985) 1 All
England Reports 833; Smith v. Stages &Anr., (1989) 1 All England Reports B
833; united States Fidelity & Guaranty Co. v. Elizabeth W. Giles, 276 U.S.154;
Cudahy Packing Co. of Nebraska v. Mary Ann Parramore, 263 U.S. 418; Freire
-
/
v. Matson Navigation Co., 19 Cal 2d 8, 118 p.2d 80'J (1941), referTed to.
Halsbury's Laws of England, Fourth Edition, Vol. 33, para 490 at
p.369, referred to.
c
Larson's Workmen's Compensation Law, Vol.I s.15.11, referred to.
Per B.P. Jeevan Reddy, J.
-~
1. The respondent-employee cannot claim any disablement benefit
under the Employees' State Insurance Act for the injuries suffered by him. D
[69-D]
2. A reading of the definition of 'employment injury' under Section
2(8) of the Employees' State Insurance Act shows that for constituting an
_.>-.
employment injury it must not only be caused bY an accident arising out E
of his employment but must be one arising in the course of his employment. The words 'arising out of and in the course of employment' are not
defined in the Act or the Rules and Regulations thereunder. While both
......,_
the expressions 'arising out or and 'in the course or do not ·mean the same
thing, both of them do denot~ and contemplate a causal connection beF
tween the accident (which leads to injury) and the employment. The
_L
accident, in order words, must not be unconnected with the employment.
(58-C, 60 C-D]
3. Any irijury suffered by an insured employee as a result of an
accident occurring on a public road or a public place, even while going to G
or returning from the place of employment cannot be treated as an
employment injury. Once it is found that the accident took place on a
>--
public road, it becomes immaterial whether that place is one mile or one
_,
furlong away from the work place. Of course, if the employee sutlers an
injury while travelling, whether voluntarily or as a condition of service, by
a transport provided or arranged by the employer it will be an employment H
30
SUPREME COURT REPORTS
(1992) 3 S.C.R.
A
uyury. Similarly, if the accident takes place on the premises of the
employer, it will be treated as one arising out of and in the course of
employment. It is, however, necessary to clarify that if an employee suffers
an injury while travelling by a public transport or while proceeding along
a public road in the course of performance of his duties e.g., medical
B
representatives, linesmen employed by Electricity and Telephone under·
takings, repair and maintenance personnel employed to go to the residen·
tial and other places, (where the units/gadgets are installed), to attend
them and so on. (68 ff, 69 A·C]
4. In respect of injuries suffered in accidents not arising out of and
C in the course of employment, i.e., in the case of injuries other than
employment injuries, remedies and forums are different e.g., Motor
Vehicles Act, (Section 110-A) Railways Act (Sections 82-A and 82-J) and
so on. If an employee covered. by the Act suffers an injury on account of
an accident not arising out of and not in the course of his employment, he
is not without a remedy in law. Forum may be different; procudure may
D
be different; but he certainly has a remedy; just as any other citizen of this
country; neither less nor more. (60 F·G]
Saurashtra Salt Manufacturing Company v. Bai Valu Raju and Ors.,
A.l.R. 1958 S.C. 881; General Manager, B.E.S. T. Undertaking, Bombay v.
E
Mrs. Agnes, [1964] 3 S.C.R. 930; Mackinnon Machenzie & Co. Pvt. Ltd. v.
Ibrahim Mahommed Issak, [1970) 1 S.C.R. 869, referred to.
Bhagubai v. Central Railway, Bombay, 1954 (2) Labour Law Journal
403; Regional Director ESIC v. L. Ranga Rao & Anr., 1981 (2) Kamataka
Law Journal 197; Sadgunaben Amrutlal & Ors. v. The Employees' State
F
Insurance Corporation, (1981) 22 Gujarat Law Report 773; Regional Director E.S.I. Corporation, Trichur v. K Krishnan 1975 Kerala Law Times 712;
Commissioners for the Port of Calcutta v. Mst. Kaniz Fatema, A.l.R. 1961
Vol. 48 Calcutta 310, referred to.
Cremins v. Guest, Keen & Nettle/olds, Ltd., 1908 (1) K.B. 469; Gane
G
v. Norton Hill Colliery Co., (1909) 2 K.B. 539; John Stewart and Son ( 1912)
v. Longhurst, (1917) Appeal Cases 249; Howells v. Great Western Railway,'
(1928) 97 L.J. K.B. 183; Weaver v. Tredegar Iron & Coal Co. Ltd., (1940) 3
-~
All England Reports 157; Hill v. Butterley Co. Ltd., (1948) 1 All England
Law Reports 233; Aldem1an v. Great Western Railway Company, (1937)
H Appeal Cases 454; Netherton v. Coles, (1945) 1 All England Law Reports
__ .(
_..JE.S.I. CORPN. v. FRANCIS DE COSTA [RAMASWAMI, J.]
31
227; Jenkins v. Elder Dempster Lines Ltd., (1953) 2 All England Law Reports A
1133; Blee v. London and North Eastern Railway Co., (1938) Appeal Cases
126, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1174 of
1979.
From the Judgment and Order dated 25.11.1977 of the Kerala High
Court in A.S. No.638 of 1974.
K.T.S. Tulsi, Addi. Solicitor General, Ms. Anil Katyar, T.C. Sharma
and C.V.S. Rao for the Appellants.
N. Sudhakaran for the Respondents.
The Judgments of the Court were delivered by
B
c
K. RAMASWAMY, J. This appeal, by special leave, arises against the
judgment of the Kerala High Court in AS. No.638 of 1974 dated November D
25, 1977. The respondent was an employee in M/s. J & P Coats (P) Ltd.
at Koratty. He had to attend the duty in the second shift at 430 p.m. On
June 26, 1971 while he was going on his bicycle to join duty, on the road
leading to the factory at a distance of 1 k.m. the company's lorry hit him
at 4.15 p.m. on left side of his body and knocked him down on the road. E
As a result his left · collar bone and left shoulder were fractured and
ultimately the Insurace Medical Officer certified that the respondent was
totally and permanently incapacitated to work in the factory. He, therefore,
laid the claim before the E.S.I. Court under S.75 of the Employee's State
Insurance Act, Act No.34 of 1948 for short 'the Act' which found that the
. respondent was going on the usual route along which he passes and F.
repasses every day to and from the factory. The cycle was purchased by
him from the advance given by the employer. He was not negligent in riding
the cycle. The injuries were caused to him in an accident while in the
course of his employment and that, therefore, he is entitled lo the benefits
under the Act. On Appeal the High Court confirmed these findings.
G
Section 2(8) of the Act defines employmen! injury thus:-
"employment injury" means a personal injury to an employee
caused by accident or an occupational disease arising out of
aiid in the course of his employment, being an insurable H
A
B
32
SUPREME COURT REPORTS
[1992) 3 S.C.R.
employment, whether the accident occurs or the occupational
desease is contracted within or outside the territorial limits of
India".
A reading thereof would show that a personal injury caused to an
employee by an accident or occupationaJ disease arising out of and in the
course of his insurable employment whe:ther the accident occurred within
or outside the territorial limits of India is an employment injury. The
crucial but tiklish question of considerable importance is whether the injury
caused by an accident on a public road, while on his way to join the duty
just 15 minutes before reporting to duty at a distance of 1 k.m. from the
C factory premises, arises out of and in the course of his employment_?
Accident has not been defined under the Act. The popular and
ordinary sense of the word 'accident' means the mishap or an untoward
happening not expected and designed to have an occurrence is an accident.
D
It must be regarded as an accident, from the point of view of the workman
who sliffers from it, that its occurrence is unexpected and without design
on his part, although either intentionally caused by the author of the act or
otherwise. It may also arise in diverse forms and not capable of precise
definition. The .common factor is some that concrete happening at a
definite point of time and an injury or in:capacity result from such happenE
ing.
The Act seeks to cover sickness, maternity, employment injury, occupational disease, etc. The Act is a social security legislation. It is settled
law that to prevent injustice or to promote justice and to effectuate the
F
object and purpose of the welfare legislation; broad interpretation should
be given, even if it requires a departure from literal construction. The
Court must seek_ light from loadstar Arts. 38 and 39 and the economic and
social justice envisaged in the Preamble of the Constitution which would
enliven meaningful right to life of the worker under Art. 21. Article 39( e)
enjoins the State to protect the health of the workers under Art.41 to
G secure sickness and disablement benefits and Art.43 accords decent standard of life. Right to medical and disability benefits are fundamental human
rights under Art. 25(2) of Universal Declara~ion of Human Rights and
Art.7(b) of International Convention on Economic, Social and Cultural
Rights. Right to health, a fundamental human right stands enshrined in
H socio-economic justice of our constitution and the Universal Declaration
_,..1..:
--
- '
.. r>·
E.S.I. CORPN. v. FRANCIS DE COSTA [RAMASWAMI, J.J
33
of Human Rights. Concomitantly right to medical benefit to a workman is A
his/her fundamental right. The Act seeks to succour the ·maintenance of
health of an ensured workman. The interpretative endeavour should be to
effectuate the above. Right to medical benefit is, thus, a fundamental right
to the workman.
Moreover, even in the realm of il\terpretation of statutes Rule of Law B
is a dynamic concept of expansion and fulfilment for which the interpretation would be so given as to subserve the social and economic justice
envisioned in the Constitution. Legislation is a conscious attempt, as a
social direction, in the process of change. The fusion between the law and
social change would be effected only when law is introspected in the C
context of ordinary social life. Life of the law has not been logic but has
been of experience. It is a means to serve social purpose and felt necessities
of the people. In times of stress, disability, injury, etc. the workman needs
statutory protection and assistance. The Act fastens in an ensured employment statutory obligation on the employer and the employee to contribute D
in the prescribed proportion and the manner towards the welfare fund
constituted under the Act (Ss.38 to 51 of the Act) to provide sustenance
to the workmen in their hours of need, particularly when they become
economically inactive because of a cause attributable to their employment
or disability or death occurred while in employment. The fact that the
employee contributed to the fund out of his/her hard earned wages cannot E
but have a vital bearing in adjudicating whether the injury or occupational
disease suffered/contracted by an employee is an employment injury. The
liability is based neither on any contract nor upon any act or omission by
the employer but upon the existence of the relationship which employer
bears to the employment during the course of which the employee had F
been injured. The Act supplant the action at law, based upon not on the
fault but as an aspect of social welfare, to rehabilitate a physically and
economically handicapped workman who is adversely effected by sickness,
injury or livelihood of dependents by death of a workman.
Literal construction of the phrase "arising out of his employment" G
conveys the idea that there· must be some sort of connection between the
employment ~d. the injury caused to a workman due to the accident. But
it is vide enough to cover the case where there may not necessarily be a
direct connection of the workman. There may be circumstances tending to
show that the workman received personal injury due to the accident that H
34
SUPREME COURT REPORTS
(1992] 3 S.C.R.
A
arose during the course of or out of his employment. It would not mean
that personal injury only must have resulted from the mere nature of the
employment, nor it be limited to cases where the personal injury is
referable to duties to which the employee has to discharge. The phrase
"arising out of the employment" applies to employment as such, to its
B nature, its condition, its workman is brought within the zone of danger and
resultant injury, disease or death. In tlie context of the claims of the labour
for social justice under welfare legislation, the principle is that · the
employer and the employees are so inter-related and depend on each other
that it is in the interest of each that the other should survive, and it is in
the interest of society that both should be kept functioning in harmony with
C each other. The expression "arising out of', therefore, requires the assistance of .casual connection between the employment and the accident. The
employment is the cause and the accident is the effect. The casual relationship between employment and the accident does not logically necessitate
direct or physical connection. It may be of various steps, namely, direct,
D physical, approximate, indirect or incidental.
E
F
G
H
In Upton v. Great Central Railway Co., 1924 A.C. 302 it was held that
the right to compensation given under the Workman Compensation Act is
no remedy for negligence on the part of the employer but is rather in the
nature of an insurance of the workman against certain sort of accident. The
peril of injury which the workman faces must not be something personal
to him; "it must be incidental ·to his employment". In Saurashtra Salt
Manufacturing Co. v. Bai Valu Raja & Ors., AIR 1958 SC 881, relied on by
Sri Tuls~ learned Additional Solicitor General, construing the words "in
the course of employment" under Section 3(1) of the Wrokman Compensation Act, 1923, this Court held that as a rule the employment of the
workman does not commence until he has reached the place of employment and does not continue when he has left the place of employment, the
journey to and from the place of employment being excluded. However,
that strict rule was held to be subject to the theory of notional extension.
In Fitzgerald v. W J. Clarke & Son, 1908(2) King's Bench 796 Buckley,
LJ. explaining the phrase 'out or and 'in the course of employment'
observed thus:
"The words 'out pr point, I think, to the origin or cause of the
accident; the words 'in the course or to the time, place and
--
-
'
_>-
) ..
I
-'-
E.S.I. CORPN. v. FRANCIS DE COSTA [RAMASWAMI, J.)
35
circumstances under which the accident takes place. The A
former words are discriptive of the character or quality of the
accident. The latter words relate to the circumstances under
which an accident of that character or quality takes place.
In Mcdonald v. Steamship Co., 1902(2) King's Bench 926 laying
. emphasis on the role of place in determination of the course of employB
ment of a workman, it was pointed out thus:-
"If path of his duty both to go and to proceed from the working
where he is engaged and so long as he is in a place which his
person other than those was engaged would have no right to C
be, and indeed, he himself would have no right to but for the
· work of his employment, he was, I think normally still be in the
course of employment.
Lord Halsbury in Titley & Co. v. Cattrall, 1926(1) King's Bench 488
at 490 observed that actual ownership or control by the employer of the D
spot where an accident occurred is not essential. The workman goes there
on his way to and from his working and he may be regarded as in the course
of his employment while crossing the dock or other open space to and from
the spot where his work actually lies. Such passage is within the contemplation of both the parties to the contract as necessarily incidental to it.
E
In Bai Valu Raja's case, AIR 1958 SC 881 it was held that "the strict
rule is subject to the notional extension of the employer's premises so as
to include an area which the workman passes and prepasses in going to
and in leaving the actual place of work. There may be some reasonable
extension in both time and place and a workman may be regarded as in F
the course of his employment, even though he had not reached or had left
his employer's premises".
Therefore, facts and circumstances of each case will have to be
examined very carefully in order to determine whether the accident arose G
out of and in the course of the employment of a workman, keeping in view
at all times not only the theory of notional extension as a link but also social
,r
justice envisaged under the Constitution and the Act, to alleviate the
hardship suffered by the employee.
The Court in Mackinnon Mackenzie & Co.(P) Ltd. v. Ibrahim H
36
SUPREME COURT REPORTS
(1992] 3 S.C.R.
A
Mahommed /ssak, [1970] 1 SCR 869 at 878 noticed the development of the
law from the decisions of the House of Lords that the place of accident
need not necessarily be in the factory premises but outside thereto as well.
In Rosen v. S.S. Querous (Owners), 1933 Appeal Cases, 494 Lord Buckmaster explained the phrase of Lord Thankerton in Simpson v. L.M. & S.
B Railway Co., 1931 A.C. 351 that the place referred to therein was not the
exact spot at which the accident may have occurred, but meant, in that case
the train on which the workman was travelling and in the' later case the
ship on which the workman was employed. Thus, it could be seen that the
accident may occur while the workman was on his way to attend the duty
or during his return from duty. The place need not necessarily be in the
C premises of the factory etc.
In determining whether a given accident occurred in the course of
employee's employment, the factual picture as a whole must be looked at,
and any approach based on fallacious concept that any one factor is
D conclusive must be rejected. The facts are of crucial importance, and the
addition to or subtraction of one factor in a given situation may tilt the
balance, whereas in another situation the addition or subtraction of the
same factor may make no difference. This, however, does not indicate that
there are no principles in the light of which a court can decide whether an
employee was acting in the course or arising out of his employment at the
E
material time when the accident had occurred.
The course of employment has been used in tort law as a test to
determine the vicarious liability of the employer to the world at large. The
A.
J._
Latin phrase "eundo morando, et redeundo" to mean that while at his place
--
F
of employment and while entering and leaving it the doctrine of employer's
liability was eXtended to matters arising while the workman was coming to
G
the place of work, or leaving it, workman is on the employer's premises.
,,.A ~
But duty is not confined to the actual performance of work, but also applies
when it is reasonably connected or .. incidental to the work.
The question in this case is· whether the casual connection between
the accident and the employment would be extended beyond the factory
premises to a distance of.one Km., while the injured workman was on his
way on a public road to attend to the duties. Before adverting to the
concepts of duty, time and place of accident, in the context of an acccident
H to an employee, it may be necessary to notice the development of law in
-(
'
E.S.I. CORPN. v. FRANCIS DE COSTA [RAMASWAMI, J.J
37
various countries in relation to compensation to the workman under the A
respective workman compensation statutes. New Zealand Workmen's compensation system, pursuant to the recommendation in 1966 by the Royal
Commission appointed in that behalf, recommended that the Workman
Compensation Act based on contract should be replaced by a unified
system of accident rehabilitation and was accepted by the House of RepB
resentatives'; abolished the common law action for damages for personal
injilries and adopted in all embracing "national accident insurance system".
In Australia the Committee of enquiry, appointed in this behalf, in its
report stated that:
(1) The systems have failed to grapple, in any way, with the C
rehabilitation of the injured worker.
(2) There is no uniformity between compensation systems throughout
Australia.
D
(3) It provides no protection for the 15 per cent of the work force
who are self-employed.
(4) Though in name the system aims to protect injured workmen, it
limits coverage to injuries sustained during working hours leaving the
workers to fend themselves thereafter. It recommended full coverage.
Accordingly necessary amendments were brought about. The American
National Commission on States Wrokman's Compensation Laws also had
gone into the question to provide an adequate, prompt and equitable
system of compensation. The Commission laid emphasis to settle the
dispute out of court and other methods. Now the fact is that though general
public are exposed to risks on streets and on public paths, some state
Supreme Courts held that it does not change the character of the risk to
workman. Accordingly compensation was awarded. Industralised nations
E
F
like France, Federal Republic of Germany, Poland, Sweden, Britain and
Yugoslavia adopted the most advantageous alternatives to workman's compensation system i.~. social insurance and social security system. In United G
Kingdom Workman's Compensation Act was replaced by Social Security
Schemes.
·
in Ha/sbury's Laws of England, Fourth Edition, Volume 33, para 490
at p.369 it is stated thus:-
H
A
B
c
D
E
F
SUPREME COURT REPORTS
(1992) 3 S.C.R.
"Accident travelling to and from work.
The course of employment normally begins when the employee
reaches his place of work. To extend it to the journey to and
from work it must be shown that, in travelling by the particular
method and route and at the particular time, the employee was
fulfilling an express or implied term of his contract of service.
One way of doing this is to establish that the home is the
employee's base from which it is his duty to work and that he
was travelling by direct route from his home to a place where
he was required to work, but that is only one way of showing
tbi!;; the real question at issue is whether on the particular
journey he was travelling in the performance of a duty, or
whether the journey was incidental to the performance of that
duty and not merely preparatory to the performance of it. If
the place where the accident occurs is a private road or on the
employer's property, the accident is in the course of the
employment because he is then at the scene of the accident by
r~a:;on only of his employment and he has reached the sphere
of his employment. The test is whether the employee was
exposed to the particular risk by reason of his employment or
whether he took the same risks· as those incurred by any
member of the public using the highway.
Thus as a general rule the employment does not begin until he has
reached the place of work. The. ambit, scope or scene of his duty does not
continue after he has left the place and the period of going and returning
are excluded. When the workman was proceeding on a public road to his
work pl<!ce or factory which is the accustomed road or route, the proximity
of the place of accident, time and the obligation to report to duty are
relevant and material facts to be kept in mind.
Lord Atkinson in Helens Colliery Co. Ltd. v. Hewitson, 1924 Appeal
G Cases 59 while reiterating this principle where there is an agreement
between the colliery company and the railway company to provide special
train for the conveyance of the colliery company's workmen to and from
the colliery and the place of the residence of the wqrkmen, observed thus:
H
"If each collier was bound by his contract to travel to his
employer's colliery by this provided train, then 'cadit questio'.
-
E.S.I. CORPN. v. FRANCIS DE COSTA [RAMASWAMI, J.]
39
The collier would be in the course of his employment when he A
was doing a thing he was bound by his contract of service to
do. But the conferring upon a collier of a privilege which he is
free to avail himself of or not, would, 'prima facie' impose no
duty whatever upon him to use it".
In special circumstances, however, such an obligation might be implied:-
"It must, however, be borne in mind that if the physical features
B
of the locality be such that the means of transit offered by the
employer are the only means of transit available to transport C
his workman to his work, there may, in the workman's contract
of service, be implied a term that there was an obligation on
the employer to provide such, means and a reciprocal obligation on the workman to avail himself of them".
In Weaver v. Tredeger Iron & Coal Co. Ltd., 1940 Appeal Cases 955(t)
the facts were that a collier was injured when trying to board a train. The
train was owned by a railway company, but the platform was situated by
the side of a railway line which ran through the colliery premises, and was
accessible from the colliery premises only. The employees of the Colliery
used it under an arrangement between their employers and the company
whereby specified trains were stopped at the platfrom to take the men to
and from their homes at a reduced fare, which was deducted by the
employers from the workmen's wages. The workmen were free to go home
by means of the main road which ran past the colliery, but in practice
nearly every employee used the railway.