Madras High Court
Panjavarnam vs K.Nirmal Kumar on 6 January, 2020
Author: S.Vaidyanathan
Bench: S.Vaidyanathan
C.M.A.No.3881 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.01.2020
CORAM:
THE HONOURABLE MR.JUSTICE S.VAIDYANATHAN
Civil Miscellaneous Appeal No.3881 of 2019
1. Panjavarnam
2. Ponnuvel ... Appellants
vs.
1. K.Nirmal Kumar
2. United India Insurance Company Limited,
No.134, Greams Road,
Chennai 600 006. ...Respondents
Civil Miscellaneous Appeal filed under 30 of the Workmen's
Compensation Act, 1923, against the order dated 04.03.2016 passed by the
Deputy Commissioner of Labour-II, Chennai, in W.C.No.320 of 2012.
For Appellants : Ms.A.Subadra
for Mr.V.Velu
For 1st Respondent : Set exparte before Tribunal
For 2nd Respondent : Mr.J.Michael Visuvasam
JUDGMENT
Seeking enhancement of compensation, Appellants herein, who are the parents of the deceased workman, have come up with the present Appeal, challenging the order dated 04.03.2016 passed by the Deputy Commissioner of Labour-II, Chennai, in W.C.No.320 of 2012. http://www.judis.nic.in Page No.1 of 6 C.M.A.No.3881 of 2019
2. It is seen that, the deceased Suresh was working as a loadman in the Lorry belonging to the 1st Respondent. It is not in dispute that, the deceased workman died out of and in the course of employment with the 1st Respondent herein. The Authority, taking note of the age of the deceased as '22' at the time of accident on 01.06.2012 and fixing his monthly income at Rs.6,368/-, arrived at a sum of Rs.7,04,842/- as compensation to be payable to the legal heirs of the deceased, together with interest at 12% per annum from the date of accident till the date of deposit.
3. The only substantial question of law raised by the Appellant in the Grounds of Appeal, is as under:
“Whether the learned Deputy Commissioner of Labour-II. is right in fixing the income of the deceased as per Section 4(1-B) of the Employees' Compensation Act, 1923?”
4. Learned counsel for the Appellants contended that, the minimum wages of the deceased workman fixed by the Authority is less than the amount prescribed in the Notification dated 31.05.2010 and that, the Authority ought to have fixed the monthly wages at Rs.8,000/-, as per Section 4(1-B) of the Employee's Compensation Act, 1923.
5. This Court has already dealt with the issue on hand in a http://www.judis.nic.in Page No.2 of 6 C.M.A.No.3881 of 2019 judgment dated 02.01.2020 rendered in C.M.A.No.3436 of 2019, relevant portion of which, reads thus:
"8. For revision of amount mentioned supra in Explanation-II that was deleted, there should be proper legislation. Whereas, for the purpose of increasing wages under Section 4(1-B), a Notification is suffice. Pursuant to the amendment, a Notification was issued on 31.05.2010, which reads as follows:
NOTIFICATION NO.S.O.1258(E), dated 31.5.2010 In exercise of the powers conferred by sub- section (1B) of section 4 of the Employee's Compensation Act, 1923 (8 of 1923), the Central Government hereby specifies, for the purposes of sub- section (1) of the said section, the following amount as monthly wages, with effect from the date of publication of this notification in the Official Gazette namely:
“Eight thousand rupees”.
"11. If the monthly income received by the injured or the deceased is not established by the employer or the dependents, the Authority will have to award compensation based on the Notification that prescribes minimum wages per month for the job.
This Court is of the view that increasing wages beyond Rs.8,000/- per month beyond what is stipulated, cannot be termed as substitution or insertion, but would amount to tampering the legislation. Even if, minimum wages are above Rs.8,000/-, the Authority can calculate compensation taking Rs.8,000/- as monthly wages, based on the Notification issued under Section 4(1-B) of the Employee's Compensation Act, issued from time to time, and not over and above it."
6. The following Notification was published in the Gazette of http://www.judis.nic.in Page No.3 of 6 C.M.A.No.3881 of 2019 India, Extraordinary Part -II, Section 3—Sub-section (ii) on 03.01.2020.
MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 3rd January, 2020 S.O. 71(E).— In exercise of the powers conferred by sub-section (1B) of section 4 of the Employee’s Compensation Act, 1923 (8 of 1923) and in supersession of the notification of the Ministry of Labour and Employment issued vide number S.O. 1258(E), dated 31st May, 2010; published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated 31st May, 2010, the Central Government hereby specifies, for the purposes of sub-section (1) of the said section, the following amount as monthly wages, with effect from the date of publication of this notification in the Official Gazette, namely:-
“Fifteen thousand rupees”
7. The said Notification is prospective in nature. In view of the foregoing, this Court is of the view that, the relief sought for by the Appellants cannot be granted. If the compensation ordered by the Authority is still lying in deposit, and if there is no interim order operating against the order of the Authority, it is open to the Appellants/Claimants to claim the same, and the Authority shall disburse the amount after conducting dependent enquiry, if any, required in terms of the provisions of the Act, within a period of eight weeks from the date of receipt of a copy of this order.
8. As the 2nd Respondent/Insurance Company is not the employer http://www.judis.nic.in Page No.4 of 6 C.M.A.No.3881 of 2019 of the deceased workman, as per the Workmen's Compensation Act, more particularly, in view of Section 30 and 30-A of the Act, there is no need for them to deposit the amount for filing an Appeal, and this Court permits them to remit the amount with interest. It is made clear that, if the Insurance Policy is silent about the payment of interest, then, the injured or the dependents of the deceased, can claim interest from the employer.
In fine, the Civil Miscellaneous Appeal stands dismissed, with the above directions and observations. No costs.
06.01.2020
Index : Yes/No
Speaking Order : Yes/No
(aeb)
To: The Deputy Commissioner of Labour-II, Chennai. http://www.judis.nic.in Page No.5 of 6 C.M.A.No.3881 of 2019 S.VAIDYANATHAN,J.
(aeb) Judgment in C.M.A.No.3881 of 2019 06.01.2020 http://www.judis.nic.in Page No.6 of 6