Hyderabad: Telangana high court has set aside Workmen’s Compensation Commission’s order directing a vehicle financier to pay Rs 4.7 lakh as compensation to an injured truck driver, ruling that a financier cannot be treated as the driver’s principal employer.Justice Laxmi Narayana Alishetty allowed a writ petition filed by Rajendra Kumar Dharewa, who had financed a truck purchased by its owner under a hire purchase agreement.The driver, Wahid, was employed by the vehicle owner for a monthly salary of Rs 4,000. After he was injured in an accident, he sought compensation.The Workmen’s Compensation Commission held the financier vicariously liable, reasoning that the driver had been appointed as the financier’s agent and that the financier exercised control over the vehicle.Challenging the order, Dharewa told high court that he had no employer-employee relationship with Wahid. The driver himself had stated that he worked for the vehicle owner, while transport records continued to show the owner as the registered holder of the truck.Wahid’s counsel argued that the writ petition was not maintainable as an appeal was available and alleged that it was filed to avoid depositing the compensation. He also relied on a Kerala high court ruling to contend that a financier remains the owner until all instalments are paid.High court rejected the argument, holding that a financier merely provides capital and does not ordinarily manage, control or run the business or pay the driver’s wages.Relying on Supreme Court precedents, the court held that a financier is not ordinarily treated as the owner or principal employer under a hire purchase agreement and quashed the commission’s order.Relying on Supreme Court precedents, the court held that a financier is not ordinarily treated as the owner or principal employer under a hire purchase agreement and quashed the commission’s order.
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