{"id":2721,"date":"2025-11-22T17:00:45","date_gmt":"2025-11-22T17:00:45","guid":{"rendered":"https:\/\/lexharborjurica.com\/?p=2721"},"modified":"2026-02-25T16:47:35","modified_gmt":"2026-02-25T16:47:35","slug":"daivshala-v-the-oriented-insurance-co-ltd-2025-insc-904","status":"publish","type":"post","link":"https:\/\/lexharborjurica.com\/?p=2721","title":{"rendered":"DAIVSHALA V. THE ORIENTED INSURANCE CO. LTD 2025 INSC 904"},"content":{"rendered":"<h1><b>DAIVSHALA V. THE ORIENTED INSURANCE CO. LTD 2025 INSC 904<\/b><\/h1>\n<p><strong>Authored by:<\/strong>&#8211; S.Thakira Banu<\/p>\n<p>Vel Tech Rangarajan Dr. Sagunthala R&amp;D Institute of science and Technology <a href=\"http:\/\/b.com\/\">B.com<\/a> LLb(hons)-5th year<\/p>\n<p><b>CITATION<\/b><\/p>\n<p>Daivshala vs The oriented Insurance Co. Ltd Citation: 2025 INSC 904<\/p>\n<p>\u00a0<\/p>\n<h1><b>COURT AND BENCH<\/b><\/h1>\n<p>Supreme Court of India<\/p>\n<p>Justice Manoj Misra and Justice K V Viswanathan Date of judgment : July 28,2025<\/p>\n<p>\u00a0<\/p>\n<h1><b>CONTEXT<\/b><\/h1>\n<p>In this case, the Supreme Court expanded the scope of the employees\u2019compensation act by interpreting the principle of \u2018 arising out of or in the course of employment\u2019 more broadly .<\/p>\n<p>\u00a0<\/p>\n<h1><b>FACT OF THE CASE<\/b><\/h1>\n<p>Mr. Shahu Sampatrao Jadhvar (deceased) was employed as a watchman at Sugar Factory(Respondent). His working hours are from 3 am to 11 am. The case arose on 22nd April 2003, Mr. Shahu left his home on his motorcycle for his duty, However, unfortunately his journey to work was never complete. When he was 5 Kms away from the working place , he met with a fatal accident and his family became deserted i.e his wife, four Children and his Mother.<\/p>\n<p>\u00a0<\/p>\n<h1><b>PROCEDURAL HISTORY<\/b><\/h1>\n<ul>\n<li aria-level=\"1\">June 26,2009:The commissioner for Workmen&#8217;s Compensation and Civil Judge (senior Division) ordered payment of compensation of \u20b93,26,240 with 12% of interest to the dependents<b><br \/><\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">December 1, 2011:The Oriental Insurance Company appeal the award to the Bombay High Court,Aurangabad Bench, there the court reverse the lower court\u2019s decision, stating that the accident doesn&#8217;t falls under \u2018arsing out of and in the course of employment\u2019<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">On 2025: The dependent filed appeal to Supreme Court Of India on special leave petition<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">July 28,2025:The Supreme Court Of India ,delivers its judgment ,overturning the decision of Bombay High Court and restoring the compensation awarded by the commissioner of Workmen&#8217;s Compensation .<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<h1><b>LEGAL ISSUE\/QUESTION PRESENTED<\/b><\/h1>\n<p>Whether the principle of arising out of or in the course of employment also cover the accident occurred during commuting to work under EC Act<\/p>\n<p>\u00a0<\/p>\n<h1><b>SECTIONS INVOLVED<\/b><\/h1>\n<p>-Section 3 : Employer\u2019s liability for compensation<\/p>\n<p>-Section 4:Calculation of compensation amount<\/p>\n<p>-Section 51E: Occurrence of accident while commute to employment<\/p>\n<p>\u00a0<\/p>\n<h1><b>ARGUMENTS<\/b><\/h1>\n<p>Petitioner\u2019s contention<\/p>\n<p>-The accident occurred while commuting to work; therefore, it is also considered as having a nexus with his employment duties<\/p>\n<p>&#8211; Cited the Doctrine of notional Extension,to argue that the accident occurred during course of employment<\/p>\n<p>\u00a0<\/p>\n<p>Respondent\u2019s contention<\/p>\n<p>-The accident occurred outside of the working premises doesn\u2019t make employer liable<\/p>\n<p>-There is no nexus between the accident and the employment<\/p>\n<p>\u00a0<\/p>\n<h1><b>JUDGMENT<\/b><\/h1>\n<p>The Supreme Court observed that the main objective of EC Act was to protect the welfare of the employees and to ensure the financial security for their family and their dependents .The court further stated that an accident occurred during the course of commuting to the workplace falls under the ambit of \u2018arsing out of and in the course of employment\u2019.Accordingly ,the employer and the insurance company held liable to pay compensation to the dependents of the deceased employee.<\/p>\n<p>\u00a0<\/p>\n<h1><b>COURT ANALYSIS<\/b><\/h1>\n<p>-Interpret the section 3 of EC Act<\/p>\n<p>Under the section 3 , it stated about the employers liability for compensation , which is subjected to two conditions<\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\">the injury or death must arise out of employment<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">the accident occurred in the course of employment<\/li>\n<\/ol>\n<p>The court said that there is a nexus between the accident and the course of employment because the deceased went out to perform his work duties. Therefore, it falls under the doctrine of \u2018arising out of and in the course of employment\u2019.<\/p>\n<p>&#8211;\u00a0 Doctrine of Notional Extension<\/p>\n<p>The court applied this doctrine , extended the scope of \u2018employment\u2019,the inclusion of risk caused not only in workplaces but also if the injury or accident occurs away from the workplace. Thus the accident falls under the course of employment.<\/p>\n<p>\u00a0<\/p>\n<h1><b>SIGNIFICANT<\/b><\/h1>\n<p>This case is a landmark ruling in Employee compensation law, by expanding the concept of \u2018arising out of and in the course of employment\u2019 to include the commuting accident .especially when the travelling is duty related .<\/p>\n<p>\u00a0<\/p>\n<h1><b>CONCLUSION<\/b><\/h1>\n<p>The Supreme Court\u2019s ruling in this case marked as a significant development in Indian labour law .it extended the scope of labour right on employee\u2019s compensation by including the commuting work is also fall under the doctrine of \u2018arising out of and the course of employment\u2019 to ensure the employee welfare and to provide the financial security for their dependence .1<\/p>\n<p>1 Daivshala vs The oriented Insurance Co. Ltd [2025] <a href=\"https:\/\/indiankanoon.org\/doc\/132806011\/\">https:\/\/indiankanoon.org\/doc\/132806011\/<\/a><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DAIVSHALA V. THE ORIENTED INSURANCE CO. LTD 2025 INSC 904 Authored by:&#8211; S.Thakira Banu Vel Tech Rangarajan Dr. Sagunthala R&amp;D Institute of science and Technology B.com LLb(hons)-5th year CITATION Daivshala vs The oriented Insurance Co. Ltd Citation: 2025 INSC 904 \u00a0 COURT AND BENCH Supreme Court of India Justice Manoj Misra and Justice K V [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2402,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[13],"class_list":["post-2721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","tag-daivshala-v-the-oriented-insurance-co-ltd-2025-insc-904"],"_links":{"self":[{"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/posts\/2721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2721"}],"version-history":[{"count":7,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/posts\/2721\/revisions"}],"predecessor-version":[{"id":2740,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/posts\/2721\/revisions\/2740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=\/wp\/v2\/media\/2402"}],"wp:attachment":[{"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lexharborjurica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}