Technical Plea - The Legal Chamber

The Supreme Court held that under the Employee’s Compensation Act, 1923, an insurer can be made a party and held jointly and severally liable for compensation if the employer's liability is covered by the insurance policy. The Court clarified that Section 19 of the Act empowers the Commissioner to determine the liability of the insurer, ensuring the workman's remedy is effective and not illusory. Facts Of The Case: The case originated from a claim filed by a workman (the second respondent), who was employed as a driver by the appellant, Alok Kumar Ghosh. The workman suffered a disabling injury due to an accident arising out of and in the course of his employment. He filed for compensation under the Workmen’s Compensation Act, 1923, against both his employer (the appellant) and The New In...

The Supreme Court held that a proprietorship concern is not a juristic person and a suit filed against the proprietor personally is maintainable. Order XXX Rule 10 of the CPC is merely enabling and does not bar a suit against the proprietor, who remains the real party in interest for all transactions conducted in the trade name. Facts Of The Case: The appellants, owners of a property, leased it to Aditya Motors, a sole proprietorship concern of respondent Pilla Durga Prasad, via a registered lease deed. After the lease expired, the lessee failed to vacate, prompting the appellants to file an eviction suit. The original suit named the lessee as defendant no.1 (Aditya Motors), along with the sub-lessee and its directors. During the proceedings, the appellants amended the plaint, substituti...

Tag: Technical Plea

Supreme Court Landmark Ruling: Proprietor and His Business Are Not Separate Legal Entities