Court Directs Managing Director to Explain Corporation's Insensitive Conduct and Orders Payment to Deceased's Family
In a significant ruling, the Allahabad High Court has come down heavily on Purvanchal Vidyut Vitran Limited for its refusal to compensate the family of Shiv Kumar Gupta, who tragically died due to electrocution while performing repair work on an electric pole. The deceased was instructed by a Junior Engineer, Hanuman Prasad Patel, a contractual employee of the corporation, to rectify an electrical fault without the necessary safety shutdown, resulting in his untimely death.
The judgment, delivered by a bench comprising Mr. Saral Srivastava and Sudhanshu Chauhan, JJ, in the case of Phoolchandra v. Purvanchal Vidyut Vitran Limited, highlighted the corporation's negligence and criticized its insensitive and hyper-technical stance in denying compensation. The court has directed the Managing Director of Purvanchal Vidyut Vitran Nigam Limited to appear in person to explain the actions of its officers.
During the proceedings, the court noted the report submitted by the Deputy Director, Electrical Safety, which confirmed the negligence of the respondent corporation and recommended compensation for the deceased's dependants. Despite this, the corporation initially denied compensation on technical grounds, claiming that Shiv Kumar Gupta was not an employee, and thus, they were not liable for compensation under the Office Memorandum dated 25.09.2021.
The court expressed its dissatisfaction with the corporation's conduct, deeming it unjustified and insensitive, especially considering the circumstances surrounding the fatal accident. The judgment pointed out that the corporation's argument regarding the absence of an authorized officer to request a shutdown was irrelevant to the issue of compensation.
The court also criticized the inconsistent approach of the corporation's legal counsel. Initially, junior counsel for the respondents expressed readiness to pay compensation, but senior counsel later retracted, arguing against it. This inconsistency was labeled unprofessional by the court, which has summoned the Managing Director to appear on 13.07.2026 to address the issue.
The court has ordered the corporation to pay Rs.7,50,000/- in compensation to the deceased's family, in accordance with the Office Memorandum aimed at providing immediate financial relief to victims of accidents caused by electricity establishments. The judgment underscores the court's commitment to ensuring justice and accountability in cases involving fatal workplace accidents.
This ruling serves as a stern reminder to corporations regarding their responsibilities towards employees and the consequences of neglecting safety protocols and compensation obligations.
Bottom line:-
Compensation - Liability of employer for fatal accident - Employee directed by a Junior Engineer (contractual employee of the respondent corporation) to climb an electric pole for repairs, resulting in fatal electrocution - Report of Deputy Director, Electrical Safety, confirming the negligence of the respondent corporation - Court criticized the insensitive and hyper-technical stance of the respondent corporation in denying compensation to the deceased's dependants.
Statutory provision(s): Electricity Act, 2003 Section 161, Indian Electricity Rules, 1956 Rule 36(2)
Phoolchandra v. Purvanchal Vidyut Vitran Limited, (Allahabad)(DB) : Law Finder Doc id # 2937557