Section 16 of the Maharashtra Employment Guarantee Act, 1977, has an overriding effect over the provisions of the Workmen's Compensation Act, 1923, in case of inconsistency.

JUDGMENT - DESAI A.A., J.:---This appeal at the behest of State raises a question as to whether a personnel engaged under the Employment Guarantee Scheme in the event of disability suffered during the course of the employment, is entitled to claim compensation as per the provisions of the Workmen's Compensation Act, 1923 (the Act of 1923).

2. The respondent Tukaram was provided work under the Scheme. On 3rd of June, 1982 while on duty he met with an accident and ultimately lost his four fingers of the left hand. He approached the Commissioner under section 19 of the Act of 111923. By the impugned award the Commissioner has awarded compensation of Rs. 12,600. While challenging the award Mr. Patil, the learned Government Pleader for the State urged that in view of section 16 of the Maharashtra Employment Guarantee Act, 1977 (the Act of 1977) the respondent is not entitled to claim such compensation under the provisions of the Act of 1923. Mr. Patil pointed out that section 16 has overriding effect, which reads thus :

"16. The provisions of this Act or scheme ...... shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force..........."

Mr. Patil made a submission that the Act of 1977 provides for payment of compensation under Clause (xiv) of section 7. As per the provisions laid down therein amongst others, in case of disablement, the personnel is entitled to such ex gratia payment as may be determined in accordance with the scheme. According to Mr. Patil as per the provisions laid down therein the respondent has been paid ex gratia payment of Rs. 2,000/-. As such it was not competent for him to approach the Commissioner under the provisions of the Act of 1923. I find that the submission as made is well founded.

3. Mr. Chavan, learned Counsel appearing for the respondent made a submission that the Act of 1923 is a beneficial piece of legislation and the right guaranteed thereunder cannot be taken away by the subsequent provisions under Act of 1977. According to him even after reading section 16, which is reproduced hereinbefore, the right of the workman to claim compensation under the Act of 1923 has neither been taken away nor abrogated. In the submission of Mr. Chavan there is no inconsistency as regards payment of compensation between the two statutes. As such the provisions laid down under Clause (xiv) of section 7 of the Act of 1977 cannot have the overriding effect and the disabled is entitled to compensation under the Act of 1923 in addition to whatever is provided under the Act of 1977. Mr. Chavan urged that what is being provided under Clause (xiv) of section 7 is ex gratia payment, which in the submission of Mr. Chavan, is not analogous to payment of compensation as envisaged by the Act of 1923. Two statutes deal with different subjects. Hence section 16 of the Act 1923 does not bring any overriding effects over those provisions as contained under Act of 1923.

4. The Act of 1977 has been introduced with an object for securing right to work by guaranteeing employment to all adult persons who volunteer to do unskilled manual work in rural area. The entire scheme of the Act has a special drive unlike those employments which are known in a common parlance. In this special scheme of the Act one of the aspect has been incorporated as discussed above, regarding payment of amount in case of disablement as contained under Clause (xiv) of section 7. The payment in case of disablement is to be made as per the scheme, without there being any rider as provided under the Act of 1923. The payment is envisaged by the provisions of the Act of 1977 is to mitigate the agony of a person who suffered injury while working under the scheme. The Act of 1977 also provides for a particular forum. As such even if the legislation has used the nomenclature of ex gratia payment that is analogous and at par with the compensation which is being awarded under the Workmen's Compensation Act. Provi

Click Here to Read the rest of this document