2025InsuranceLatestLegalMarch 2025Supreme Court

Accident – Contradictory stand of employer in disciplinary inquiry and in claim petition

On 10.5.1996, the lorry collided with the bus of the Corporation driven by the respondent.   The Corporation initiated disciplinary action against the driver for this fatal accident and he was dismissed from service.

The Labour Court confirmed the dismissal.

On 7.2.2017, the High Court dismissed the writ petition of the driver.

In the meanwhile, the proceedings for compensation under the MV Act were initiated by the family members. The Tribunal held that the lorry driver was responsible for the fatal accident.

On coming to know of the said judgment in 2017 and also the contrary stand of the Corporation taken in the said claim petition, the driver filed petition in the High Court to review the earlier order dated 7.2.2017 of the High Court.

The High Court allowed the review petition by the order dated 30.11.2018, set aside the earlier order of dismissal of writ petition and also award of the Labour Court.

HELD that the Corporation has attempted to get the best of both worlds by contradictory stand taken before the Labour Court and the Tribunal.  It is bound to cause immense prejudice to the driver if the Corporation is allowed to reverse its stand to suit is own interests.  It will be inequitable and unfair if a party is allowed to challenge a position while enjoying its fruits.

The Corporation’s non-disclosure of what its stand was before the Tribunal and what was ultimately held by it to the Labour Court as well as the High Court is suppression of such high magnitude that it can safely be held to be akin to clear fraud on Court.

Judgment dated 14.2.2025 of the Supreme Court of India in Civil Appeal No.13834 of 2024 of Maharashtra State Road Corporation Vs. Mahadeo Krishna Naik

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