SUPREME COURT OF INDIA
KULDIP SINGH AND S. SAGHIR AHMAD, JJ.
NEW INDIA ASSURANCE CO. LTD. - Petitioners
Versus
V.K. NEELAKANDAN AND OTHERS -Respondent
Civil Appeals Nos. 16904-09 of 1996
Decided on November 6, 1996 ORDER
Workmens Compensation Act, 1923 – Section 4 – Appellant New India Assurance has challenged order of High Court upholding the compensation granted to heirs of deceased workmen who died in an accident by was found as a fact in proceedings under Act that deceased workmen were drawing wages compensation was as deeming to be wages as issued notice to appellant to show cause compensation be not increased – Held, Keeping only interpretation can be given to amendment is that if any benefit is conferred workmen and said benefit is available on when case is finally adjudicated benefit should be extended to workmen hold that compensation to be paid to workmen bas to be calculated on the basis of actual wages – Learned counsel for Insurance Company has worked out amount to be paid to taking wages – Learned counsel for appellants states that payment which was awarded by Commissioner has already been paid to heirs of workmen with interest wherever payable that balance interest per annum within two months further direct Registrar of Kerala High Court to disburse amount of deceased workmen – Appeals are disposed.
Order
1. Special leave granted.
2. The appellant New India Assurance Co. Ltd. has challenged the order of the High Court upholding the compensation granted to the heirs of deceased workmen who died in an accident by the Commissioner under Workmens Compensation Act, 1923 (the Act). It was found as a fact in proceedings under the Act that the deceased workmen were drawing wages the rate of Rs 1800 per month. The compensation was, however, as under the Act deeming to be the wages as Rs 1000 per month. We issued notice to the appellant to show cause why the compensation be not increased.
3. It is not disputed that Section 4 of the Act was amended in 1995 by Amendment Act 30 whereunder the deemed income has been increased Rs 1000 to Rs 2000. Learned counsel for the Insurance Company has vehemently contended that since the accident took place in the year 19 law operating on that date is applicable and as such the heirs of the w are not entitled to the benefit of the amendment. We do not agree learned counsel. We are finally determining the rights of the workmen The Act is a special legislation for the benefit of the labour. Keeping in the scheme of the Act we are of the view that the only interpretation can be given to the amendment is that if any benefit is conferred workmen and the said benefit is available on the date when the case is finally adjudicated, the said benefit should be extended to the workmen. We, therefore, hold that the compensation to be paid to the heirs of the workmen bas to be calculated on the basis of the actual wages - Rs 1800 - drawn by :them. Learned counsel for the Insurance Company has worked out the amount to be paid to the heirs taking the monthly wages to be Rs 1800. The details are as under:
WorkmenAmount awarded by the Commissioner
Amount worked out taking monthly wages of Rs 1800 as per the amended Act as directed by this Honble Count
(Rupees)(Rupees)
1. Ganeshan89,600.00 2,16,000.00
2. Smt Janki84,716.00 1,90,611.00
3. Smt Pushpa89,084.00 2,00,439.00
4. P.T. Babu90,552.00 2,03,742.00
5. Smt Usha91,416.00 2,05,686.00
6. Pradeepan91,416.00 2,05,686.00
4. Learned counsel for the appellants states that the payment which was awarded by the Commissioner has already been paid to the heirs of the workmen with interest wherever payable. We direct that the balance amount (enhanced amount) be paid with 12% interest per annum w.e.f. June 1991 within two months. We further direct the Registrar of the Kerala High Court to disburse the amount to the heirs of the deceased workmen concerned.
5. This order would not preclude the Insurance Company from proceeding against the contractor or any other persons, if permitted under law.
6. The appeals are disposed of. No costs.
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