Report No. 62
6.9. Section 13.-
This disposes of section 12 and we may now take up section 13. In certain circumstances a person who has paid compensation has the right to indemnity because the person legally liable is not the employer. Section 13 provides for this situation and deals with the remedies of the employer against the third person.
The section1 is an follows:-
"13. Where a workman has recovered compensation in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation was paid to pay damage in respect thereof, the person by whom the compensation was paid and any person who has been called on to pay an indemnity under section 12 shall be entitled to be indemnified by the person so liable to pay damages as aforesaid."
The words "person by whom the compensation was paid" principally refer to the employer. The other person to whom the section applies is the person indemnifying under section 12. (Section 12 provides for indemnity as between the employer and a contractor, and as between a contractor and sub-contractor and so on). Some controversy seems2 to have arisen in the past as to how far section 13 is applicable between the principal contractor and the sub-contractor. Section 12(2) was amended on this point in 1933. This matter is now dealt with by section 12(2), as amended3.
1. Section 13 corresponds roughly to section 30 of the English Act of 1925.
2. See Chynibhoy v. Gunpat, AIR 1933 Born 338.
3. See Statement of Objects and Reasons annexed to the Bill of 1932, Notes on Clause 9 (13 Feb., 1932).