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High Court of Gujarat

UNITED INDIA INSURANCE COMPANY LIMITEDversusROMATBAI AMAD KICHA

Disposal
35-ANY OTHER MODE @ ADM.STAGE
Bench
C DOSHI

Holding

The appeal is allowed; the award is quashed and the case remanded for fresh hearing, allowing the insurer to file its statement and evidence.

Summary

The appellant, United India Insurance Company Ltd., appealed a Workmen's Compensation award of Rs.3,98,880 plus interest granted to the deceased sailor's dependents after the vessel he was on was hijacked by Somali pirates. The award was made by the Workmen Commissioner in Bhuj without a penalty order, based on the claimants' request to waive the statutory penalty under the Employees' Compensation Act. The insurer argued that it had not been properly served and was denied an opportunity to contest the claim or produce the marine hull and group personal accident policies it had issued. The High Court noted that the insurer had shown bona fides by depositing the decretal amount and that waiving a statutory penalty on claimants' pursis was questionable. Consequently, the Court allowed the appeal, quashed the award, and remanded the matter to the Workmen Commissioner for a fresh hearing, permitting the insurer to file its statement and evidence. The proceedings were directed to be completed within six months.

Issues considered

  • Whether the Workmen Commissioner can waive the statutory penalty under the Employees' Compensation Act on the claimants' pursis.
  • Whether the appeal should be dismissed on the ground of the small quantum of the award.
  • Whether the insurer was properly served and thus entitled to contest the claim.
  • Whether the award should be set aside and the case remanded for fresh consideration.

Legislation cited

Subjects

Employees' CompensationMarine Hull PolicyGroup Personal Accident PolicyPenalty waiverAppealWorkmen's CompensationService of noticeRemand

Judgment

      C/FA/3368/2025                                      ORDER DATED: 28/04/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                        R/FIRST APPEAL NO. 3368 of 2025

==========================================================
                UNITED INDIA INSURANCE COMPANY LIMITED
                                  Versus
                      ROMATBAI AMAD KICHA & ORS.
==========================================================
Appearance:
MR ABHIJEET S GATHRAJ(10262) for the Appellant(s) No. 1
NISHIT A BHALODI(9597) for the Defendant(s) No. 1,2
NOTICE SERVED for the Defendant(s) No. 3,4
==========================================================
 CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI

                                   Date : 28/04/2026

                                       ORDER


1.     Present First Appeal u/s 30 of the EC Act Act is directed
against the judgment and award dated 24.5.2024, whereby
the    learned          Workman        Commissioner         in     W.C.       (Fatal)
Application            No.4   of    2015,       granted     compensation            of
Rs.3,98,880/- with 12% accrued interest from the date of the
accident along with cost of Rs.3000/-. However, the learned
Workman Commissioner did not pass the order for penalty on
the ground that the claimants hae filed pursis to the effect
that they are waiving the penalty from the opponent No.1.


2.     Brief facts of the case are as under:-


2.1    That one, Mr. Sultan Ahmed Kitcha (hereinafter re-
ferred to as 'deceased workmen') was employed as a sailor
with MSV FAIZE OSMANI ("vessel") owned and operated by
M/s Hajipur Shipping Co., which is owned by Respondent
No.3 hereinabove at a pay scale of Rs 12,000 (Rupees Twelve


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      C/FA/3368/2025                              ORDER DATED: 28/04/2026




thousand only).


2.2    That the Respondent No.4 had taken 2 different policies
from the Appellants, being (i) Marine Hull Policy bearing
policy number 020400/22/09/01/00000060 for the period
18.11.2009 to 17.11.2010 and (ii) Group Personal Accident
Policy bearing Policy Number 020400/42/09/05/00001903 for
the period 17/11/2009 to 16/11/2010, both policies are issued
by Mumbai Office of the appellants.


2.3    That       in   April   2010    deceased   workmen           on      the
instructions of Respondent No.4 travelled to Muscat in the
subject vessel as one of the sailor, and that during the transit,
the vessel was hijacked by Somali Pirates in the Gulf of Oman.
A rescue operation was launched jointly by the American and
Omani Navy, and during the rescue operation on 06.04.2010,
the deceased workman lost his life.


2.4    Following the death of the deceased workmen, the body
of the deceased workmen was buried in Oman, and all
necessary last rites were conducted, and formalities were
completed.


2.5    Thereafter respondents 1 to 3 preferred the Workmen's
Compensation (Fatal) Case No. 4 of 2015 with a delay of more
than 590 days before the Labour Court, Bhuj at Kutch wherein
the learned commissioner, after hearing the applicants and
Respondent No.4 and appreciating the documentary evidence
as brought on record passed an ex-parte impugned award
dated 24.05.2024 thereby awarding a compensation of INR

                                  Page 2 of 5
      C/FA/3368/2025                           ORDER DATED: 28/04/2026




3,98,880/- together with interest @ 12% per annum from the
date of accident till its realization to be paid by the Appel-
lants to Respondent No. 1 to 3.


2.6    Hence, present First Appeal by the appellant – insurance
company.


3.     Heard learned advocate Mr.Abhijeet Gathraj for the
appellant.


4.     This First Appeal is required to be dismissed on the
ground of smallness of amount, but Learned advocate for the
appellant submits that though the insurance company was
served, service was effected to the different branch of the
insurance company and therefore, the appellant – insurance
company did not come forward to contest the claim petition.
He would further submit that in the present case, marine hull
policy and group personal accident policy were issued by the
appellant – insurance company. He would further submit that
these policies are required to be brought on record before the
learned Workman Commissioner for proper adjudication.


5.     According to this Court, since the appellant has shown
its bona fide by depositing the decretal amount, there would
not be any harm to give chance to the appellant to contest the
claim petition.        Moreover, this Court seriously doubted that
whether the Court can pass order to waive the penalty which
being a statutory under the EC Act, on the pursis of the
claimants.



                                 Page 3 of 5
      C/FA/3368/2025                       ORDER DATED: 28/04/2026




6.     In view of above, without dealing further into the merits
of the case, the matter is required to be remanded back to the
learned Workman Commissioner for fresh consideration.


7.     Resultantly, present First Appeal is allowed. Impugned
judgment and award dated 24.5.2024 passed by the learned
Workman Commissioner in W.C. (Fatal) Application No.4 of
2015 is hereby quashed and set aside.


7.1    W.C. (Fatal) Application No.4 of 2015 is restored to the
file of the learned Workman Commissioner, Bhuj for fresh
hearing in accordance with law permitting the present
appellant to file written statement as well as oral and
documentary evidence so also permitting the appellant to
tender additional documentary evidence, if it so desires.


7.2    The learned Workman Commissioner concerned shall
decide the W.C. (Fatal) Application No.4 of 2015 on its own
merits and in accordance with law as per available evidence.


7.3    The entire proceedings shall be completed within six
months from the date of receipt of copy of this order.


7.4    The insurance company shall file his written statement
as well as all oral and documentary evidence upon which it
will rely upon, at first date of hearing of the W.C. (Fatal)
Application No.4 of 2015.


7.5    The amount already deposited by the present appellant
shall be invested in the FDR initially for one year with accrued

                             Page 4 of 5
              C/FA/3368/2025                                                          ORDER DATED: 28/04/2026




    interest thereon in name of Nazir of the learned Workman
    Commissioner and shall be subject to outcome of the W.C.
    (Fatal) Application No.4 of 2015.

                                                                                                     (J. C. DOSHI,J)
    SHEKHAR P. BARVE




Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SHEKHAR PRAFULBHAI BARVE(HC00200), Principal Pvt. Secretary, at High Court of Gujarat on 28/04/2026 16:08:42




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