Daivshala vs Oriental Insurance Company Ltd. 2025 INSC 904 - S.3 Employees Compensation Act - Accident Occurring To Employee

Employees’ Compensation Act, 1923- Section 3- The phrase “accident arising out of and in the course of his employment” occurring in Section 3 includes accident occurring to an employee while commuting from his residence to the place of employment for duty or from the place of employment to his residence after performing duty, provided the nexus between the circumstances, time and place in which the accident occurred and the employment is established. (Para 55)

Section 3 of EC Act

Interpretation of Statutes - Where statutes in pari materia serve a common object in absence of any provision indicating to the contrary, it is permissible for a court of law to ascertain the meaning of the provision in the enactment by comparing its language with the other enactment relating to the same subject matter. (Para 49) An Act will be declaratory if it is intended to remove doubts and if its object was to supply an obvious omission or to clear up any ambiguity as to the meaning of a previously existing statute. In such an event, the said statute being declaratory and clarificatory in nature, it can be given retrospective effect. (Para 25) 

Words and Phrases - Deemed - The expression “deemed” is sometimes used to impose for the purpose of a statute an artificial construction for a word or phrase that would not otherwise prevail. Very often, it is also used to put beyond doubt a particular construction that might otherwise be uncertain. Sometimes it is used to give a comprehensive description that it includes what is obvious, what is uncertain and what is, in the ordinary sense, impossible. (Para 45)

Case Info


  • Case Name: Daivshala & Ors. v. Oriental Insurance Company Ltd. & Anr.
  • Neutral Citation: 2025 INSC 904
  • Coram: Hon’ble Mr. Justice Manoj Misra and Hon’ble Mr. Justice K. V. Viswanathan
  • Date of Judgment: 28th July, 2025

Caselaws and Citations Referred

  1. Regional Director, E.S.I. Corporation & Another v. Francis De Costa and Another
    • (1996) 6 SCC 1
  2. General Manager, B.E.S.T. Undertaking, Bombay v. Mrs. Agnes
    • (1964) 3 SCR 930 = 1963 SCC OnLine SC 252
  3. Bombay Anand Bhavan Restaurant v. Deputy Director, Employees’ State Insurance Corporation and Another
    • (2009) 9 SCC 61
  4. Jaya Biswal & Others v. Branch Manager, IFFCO Tokio General Insurance Company Limited & Another
    • (2016) 11 SCC 201
  5. Commissioner of Income Tax, Bombay and Others v. Podar Cement Pvt. Ltd. and Others
    • (1997) 5 SCC 482
  6. State Bank of India v. V. Ramakrishnan and Anr.
    • (2018) 17 SCC 394
  7. K. Govindan and Sons v. CIT, Cochin
    • (2001) 1 SCC 460
  8. Saurashtra Salt Mfg. Co. v. Bai Valu Raja & Ors.
    • 1958 SCC OnLine SC 131
  9. Mackinnon Mackenzie and Co. (P) Ltd. v. Ibrahim Mahmmed Issak
    • (1969) 2 SCC 607
  10. State of Madras v. A. Vaidyanatha Iyer
    • 1958 SCR 580
  11. State of Assam and Another v. Deva Prasad Barua & Another
    • (1969) 1 S.C.R. 698
  12. AG v. Prince Ernest Augustus of Hanover
    • (1951) 2 All ER 473
  13. Sadgunaben Amrutlal v. ESI Corporation
    • 1981 Lab IC 1653 (Gujarat High Court)
  14. Bhagubai v. Central Railway
    • (1954) 2 LLJ 403
  15. St. Aubyn v. Attorney-General
    • (1951) 2 All ER 473
  16. Regina v. National Insurance Commissioner, Ex Parte Michael
    • (1977) 1 WLR 109
  17. South Maitland Railways Pty. Ltd. v. James
    • 67 CLR 496
  18. Hira H. Advani v. State of Maharashtra
    • (1969) 2 SCC 662

Statutes/Laws Referred

  • Employees’ Compensation Act, 1923 (formerly Workmen’s Compensation Act, 1923)
    • Section 3 (Employer’s liability for compensation)
    • Section 4 (Compensation for death)
  • Employees’ State Insurance Act, 1948
    • Section 2(8) (Definition of “employment injury”)
    • Section 46 (Benefits)
    • Section 51C (Accidents while travelling in employer’s transport)
    • Section 51E (Accidents while commuting to work and vice versa)
    • Section 53 (Bar against receiving compensation under other laws)
  • Indian Evidence Act (for principles of statutory interpretation)
  • International Labour Convention of 1964 (referenced in Law Commission Report)
  • Law Commission of India, 62nd Report (on the EC Act)
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