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Section 82: Remedies of employer against stranger

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VII: Employee's Compensation
Competent Labour Forum
Act No. 36 of 2020
Section 81 All 163 Sections of Code on Social Security, 2020 Section 83

Legal Commentary & Landmark Judgments: Section 82

Section 82 of the Code establishes the remedies of the employer against a third-party stranger whose negligence or wrongful act created the legal liability to pay employee compensation, codifying the right of statutory indemnity.

  • Employer Statutory Right of Indemnity Against Strangers: Provides that where an employee is injured by the wrongful act of an external third party, the employer who pays compensation is entitled to be indemnified by that third party.
  • Subrogation to Worker's Tortious Claims: Subrogates the employer to the common law tortious claims of the worker against the negligent contractor, supplier, or driver responsible for the injury.
  • Adjudication of Indemnity by Competent Authority: Authorizes the Competent Authority to adjudicate indemnity disputes between the employer and the third party within the same compensation proceedings.
Key Landmark Precedents:
  • National Insurance Co. Ltd. v. Hamida Khatun (2009) 13 SCC 710: Supreme Court affirmed that statutory indemnity provisions prevent tortfeasors from escaping liability merely because social security compensation was paid by the employer.
  • Oriental Insurance Co. Ltd. v. Siby George (2012) 12 SCC 540: Affirmed the legal mechanism enabling employers to recoup compensation disbursements from responsible third-party contractors.
  • M.C. Mehta v. Union of India (1987) 1 SCC 395: Supreme Court affirmed that ultimate civil liability must fall upon the entity whose active negligence generated the hazardous event.
Courtroom Practice & Strategic Litigation Guidance:

If a factory worker is injured by a delivery truck operated by an outside logistics vendor, immediately implead the logistics company and its commercial motor insurer as third-party respondents under Section 82, claiming full indemnity for all compensation awarded.

Section 81 All 163 Sections of Code on Social Security, 2020 Section 83