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Raj Sharma   17 April 2018

Is sub contractor responsible for accidental dealth compensation to deceased family?


Our case is regarding clash with a contractor upon a clause mentioned in our work order. 

My father is a sub contractor (sc) of a reputed mining company here (contractor). 

There are around 30-40 staffs under our payroll. 

We have signed work order last year and in the work order there is a clause 

which mentions "subcontractor shall insure his plant & equipment, Personnnel/Worker and other resources at his own cost for the tenure of sub contract work and shall produce the proof thereof to the company head office."

We never did and they never bothered us for this ever.

So recenrly, around a week ago, One of our operator(staff) died at the site, basically hit by the payloader machine. Staff/driver who was operating the machine has escaped from the site and he is "not" our staff but staff of the company(contractor). Payloader machine is also not our machine.

Now victim's family is asking for compensation. And company(contractor) assured them that they will be given insurance claim of approx 4 lacs, as it was accident where he died during "work" and they will initiate the procedure for the same. So family has gone back to the village without creating chaos or any kind of legal threats. They are poor, cant afford to. 

Now, Company is putting the contract to our face and sending a letter through post mentioning above clause and concluding the following:

"So, please note that for the incident that has happened at crusher site on x.x.2018, you shall be solely responsible for providing the claim compensation to the victim."

We cannot afford to do so, Our monthly billing amount is barely 3-4 lacs out of which only 20-30 thousand we take home. 

Since we have singed that work order we feel under pressure and have no idea what to do. 


 10 Replies

Adv Deepak Joshi +917017821512 (Advocate)     17 April 2018

Sent copy of letter sent to you by compay at

Raj Sharma   17 April 2018

Done. I have just sent. Pls check.

Siddharth Jain   17 April 2018

You'll need to reply to the said notice through an advocate stating that the said deceased workmen who died during duty wasn't on your payroll, hence you are not liable to provide any monetary compensation to the deceased family.
For any other queries feel free to contact me

Raj Sharma   17 April 2018

He was on our payroll but man operating the payloader machine was not on our payroll he was on company's payroll.

Siddharth Jain   17 April 2018

I'll need to see documents. Have share the copy of the notice as well as the reply, if any.

Siddharth Jain   17 April 2018

I'll need to see documents. Please share the copy of the notice as well as the reply, if any.

Raj Sharma   17 April 2018

Sending you an email.

Shamsheer Pal Singh Dhillon (law associate)     17 April 2018

Hi Raj,

I need you tho check Firstlt, whether the employee who had died was covered under ESI Act or not?

Secondly, the law of the land is settled. In case the employee is not covered under ESI Act, then in case of death or any diability during the normal course of work, it is the responsibilty of the principal employer.

In the present senario you are a subcontractor and any clasue mentioned in the work order cannot over right the settled principal of law.

For further clarification you can mail me on

Hope the above would suffice.


Shamsheer Pal Singh Dhillon


Raj Sharma   17 April 2018

Email sent pls check.

MANOJ KUMAR JAIN (LAWYER -JOB )     19 April 2018



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