- (1.) The 1st respondent at the material time was the driver or the 2nd respondent's lorry, KLA. 4164. On 24-8-1974 he carried in it a load of timber to a saw mill. He parked the loaded vehicle in the timber yard. While he was climbing down, from the cabin after so parking the lorry one of the logs on the lorry fell on his left leg. That leg was fractured and consequently amputated above the knee. The Commissioner for Workmen's Compensation found that the accident arose out of and in the course of his employment and fixed the compensation payable to him under the provisions of the Workmen's Compensation Act, 1923 as Rs 6720/-. The Commissioner declared that the appellant, the insurer, impleaded as a party respondent to the proceedings before him, is liable to pay the said sum to the workman on behalf of the employer. He directed the insurer to deposit the said sum in his court on behalf of the 2nd respondent for payment to the 1st respondent within 30 days of his judgment which is under appeal. The insurer, in this appeal, challenges the validity and legality of this declaration and direction.
(2.) There is no finding that S.14 of the Act is attracted to this case nor that any of the conditions mentioned therein are obtained in it. The Act contains no other provision whereby an insurer becomes liable to the employee in respect of the employer's liability to him to pay compensation for personal injury. See The New India Assurance Co. Ltd v. Parameswari Amma ( ILR 1976 (1) Ker. 237 ).
(3.) There is no dispute that the appellant has issued a policy of insurance in relation to the use of the vehicles KLA. 4164, as contemplated by S.94 of the Motor Vehicles Act, 1939. Clause (i) of the Proviso to sub-s.(1)(b) of S 95 of that Act provides that such a policy shall cover a liability arising under the Workmen's Compensation Act, 1923 in respect of the death of or bodily injury to (amongst other employees) an employee engaged in driving the vehicle. S.96(2) of that Act enables one seeking judgment against an insured in respect of any such liability which under S 95 (l)(b) is required to be covered by a policy of insurance, to issue through the court, after the commencement of the proceedings in that behalf, a notice of bringing such proceedings to the insurer, if any, who has issued a policy covering such liability. That sub-section also entitles the insurer to whom such notice is given to be made a party to the proceedings and to defend the same on the grounds set out therein, but only on those grounds. See B. I. G. Insurance Co. v. Itbar Singh ( AIR 1959 SC 1331 ). And, under sub-s.(1) of S.96 read with sub-s.(6) thereof, subject to the avoidance of his liability on these grounds by the insurer, he is bound to pay to the person entitled to the benefit of the decree such sum as not exceeding the sum assured payable under the policy.;