This issue you have posted is like a bomb; it can explode or be defused. Before anything else, let me first understand how your company allowed this to happen. This act of your Assistant Executive Engineer amounts to non-compliance with the company's policies and regulations, attracting penal provisions if any are laid therein.
Additionally, what is the condition of the person who met with the accident? What damage has been caused to him? Who is bearing the medical expenses? Have you allowed paid leave for him?
Legal Action and Accountability
Regarding legal action, you can hold the so-called Assistant Executive Engineer accountable for "willful negligence that caused severe physical and mental harm to another individual." They can be arrested for this reason (though they could secure bail by paying a bond amount). However, this will not benefit the person who suffered the accident.
I propose that the Assistant Executive Engineer should pay all the medical expenses resulting from this incident, along with compensation (the amount can be determined by you; a higher amount would serve as a cautionary message to all employees contemplating non-compliance). To escalate the seriousness of the situation, you may also consider suspending the said executive engineer for seven days or for a period double to the injured person's absence.
Regards,
J S R