(viii) LIABILITY OF PRINCIPAL EMPLOYER TO PAY COMPENSATION

ARISING OUT OF AND DURING THE COURSE OF EMPLOYMENT

• Principal employer will be liable for payment of compensation when an employee engaged by the contractor dies in an accident arising out of her employment.
State of Milharashtra v. Milhadeo Krushna Waghmode, 1994 LLR 950: 1994 (69) FLR 571: 1994-II CLR 238: 1994-II LLN 829 (Born HC).

• The principal employer will be liable to pay compensation in an accident to the dependents of the deceased whereas the principal employer can recover from the contractor.
JD.P. Associate, Chennai v. K. MiI/arkodi, (2001) II LLJ 535: 2001 LLR (Sum.) 1071 (Mad He).

• Principal employer will be liable to pay compensation if workman is engaged through the contractor.
1. Mil/ankara Rubber & Produce Company Ltd. v. Hameed, 2001 LLR 998 (Ker He).
2. Soil Conservation Department, Damodar Valley Corporation, Hazaribagh v. Sudan Sao, 2003 LLR 66 Olm HC).

• Principal employer and the contractor will be liable for payment of compensation to a workman injured in an accident.
Mohammad Rafiq Mohiuddin v. S. Narasimha, (2002) IV LLJ (Supp) NOC 1306: 2002 LLR 718 (AP He). 

• Compensation on death or injury will be payable by the principal employer.
Sri Thirthamurthy v. Radha, 2002 LLR 844: 2002 LlC 2122: 2002 (4) SCT 478 (Kam He). • Principal employer will be liable to pay compensation in an accident covered under the Workmen's Compensation Act even when the employee is engaged through the contractor whereas recovery can be made .by the principal employer from the contractor for the compensation as paid.
Agricultural College and Research Institute, Killiku/am, Va/lanad v. S. Saki/abanu, 2004 (I) LLJ 741 (Mad He).

• Assessment of compensation to the driver at total earning loss will not be correct since he was able to drive the light vehicle.
K. Nageswara Rao v. B. Nagamalleswari, 2007 LLR 780 (SN) (AP He).

• Fisheries Department will be liable with contractor to pay compensation to the dependents of deceased dying by drowning.
State of M.P. v. Dharmadev Das, 2007 LLR 441 (SN) (MP He).

• An employer, not ESIC, will be liable for compensation when contribution has not been deposited.
Allied Industries v. Mool Chand, 2008 LLR 217 (SN) (Raj He).

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