In the case of National Insurance Company Limited vs. Sarita Devi & Others, the High Court of Himachal Pradesh addressed the scope of an employer’s liability under Section 3(1) of the Employees’ Compensation Act, 1923. The court ultimately set aside a compensation award, ruling that a workman’s death due to a natural disease unrelated to workplace stress does not qualify as an industrial accident.
- The “Causal Connection” Requirement
The core legal question was whether the death of Hazara Singh, a truck driver, arose “out of and in the course of employment”. The court clarified several critical principles:
- Beyond Working Hours: Merely dying during working hours or while on duty does not automatically trigger liability.
- Mandatory Link: There must be a clear causal connection proving that the employment directly contributed to, accelerated, or aggravated the fatal condition.
- Burden of Proof: The onus lies entirely on the claimants to prove that the work and resulting strain contributed to the injury or death.
- Factual and Medical Context
The deceased was found dead beside his truck after unloading it. His family argued that the “fatigue, stress and strain” of driving day and night caused his death. However, medical evidence contradicted this:
- Medical Diagnosis: The postmortem report and expert testimony from Dr.Priksit Malhotra confirmed the cause of death was acute necrotizing cellulitis and fasciitis (a severe bacterial skin infection).
- Lack of Nexus: The medical expert explicitly admitted during cross-examination that this bacterial disease has no nexus with the profession of driving.
- Definition of the Condition: The court noted that cellulitis is a bacterial infection of the deeper skin layers, and necrotizing fasciitis is a complication involving tissue death, neither of which is typically induced by occupational stress.
- Judicial Reasoning and Reversal
The High Court found that the lower Commissioner had erred by granting compensation without evidence of an “accident”.
- Failure of Evidence: The claimants failed to produce expert testimony or legal evidence showing that unhygienic working conditions, fumes, or driving-related stress contributed to the infection.
- Natural Death: Because the disease was independent of his duties, the death was classified as a natural death rather than a workplace injury.
- Legal Precedents: Relying on Supreme Court rulings like Jyothi Ademma and Shakuntala Chandrakant Shreshti, the court emphasized that there is no legal presumption that an accident occurred just because a death happened during employment.
Final Outcome
The High Court allowed the appeal by the National Insurance Company and quashed the compensation award of Rs. 5,98,680. The court concluded that since no causal link between the bacterial infection and the employment was established, the insurer could not be held liable.
STPL (Web) 2026 HP 250
National Insurance Company Limited. V. Sarita Devi & Others. (D.O.J. 22.05.2026)
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