2015 Supreme(Bom) 2274
IN THE HIGH COURT OF BOMBAY AT NAGPUR BENCH
A.S. CHANDURKAR, J.
Royal Sundaram Alliance Insurance Co. Ltd. - Appellant
Versus
Madhu @ Mahadev & Ors. - Respondents
FIRST APPEAL NO.720 OF 2015
Decided On : 30.10.2015
Advocate Appeared:
For Appellant :Shri A.J. Pophaly, Advocate for appellant.
For Respondent No. 1:Shri A.J. Pathak, Advocate for respondent No.1.
The main legal point established in the judgment is that the legal representative of an injured employee who has initiated proceedings for compensation but has subsequently expired is entitled to continue the proceedings and receive the compensation amount.
Headnote:
Employees Compensation Act - Legal Representative - Section 10 - 4A, 8, 10, 30 - The court discussed the provisions of the Employees Compensation Act, particularly Sections 4A, 8, and 10, and their interpretation in the context of the entitlement of a legal representative to continue proceedings initiated by a deceased employee for seeking compensation. The court highlighted the distinction between dependents' entitlement in case of an employee's death and an injured employee's right to claim compensation. It emphasized that if the right to sue survives after the death of an injured employee who has made a claim for compensation, there is no bar for his/her legal representative to continue the proceedings. The court also referenced relevant case law to support its interpretation of the legal provisions.
Fact of the Case:
Madhu, an employee, filed proceedings under Section 10 of the Employees Compensation Act seeking compensation for an accident during his employment. He passed away during the proceedings, and his elder brother, as his legal heir, applied to be brought on record. The Insurance Company opposed this, arguing that the elder brother was not a dependent as per the Act's provisions.
Finding of the Court:
The court found that the legal representative of an injured employee who has initiated proceedings for compensation but has subsequently expired is entitled to continue the proceedings and receive the compensation amount.
Issues: The main issue was whether a legal representative of a deceased employee who had initiated proceedings under Section 10 of the Employees Compensation Act seeking compensation for injuries suffered during employment would be entitled to continue said proceedings after the employee's death.
Ratio Decidendi: The court held that if the right to sue survives after the death of an injured employee who has made a claim for compensation, there is no bar for his/her legal representative to continue the proceedings.
Final Decision: The judgment of the learned Commissioner under Section 30 of the Employees Compensation Act was confirmed, and the appeal was dismissed with no order as to costs.
The question that arises for determination in this appeal filed under Section 30 of the Employees Compensation Act, 1923 (for short, the said Act) is whether a legal representative of a deceased employee can be permitted to continue proceedings initiated by said employee during his life time for seeking compensation under Section 10 of the said Act.
The facts lie in a narrow compass. One Madhu was employed with the respondent No.2 and during the course of employment, he met with an accident on 11/02/2011. On 07/05/2012 said Madhu filed proceedings under Section 10 of the said Act seeking compensation on the ground that the accident in question had arisen out of and in the course of employment. During pendency of said proceedings, the claimant Madhu expired on 23/07/2013 and his elder brother in the capacity as his legal heir applied for being brought on record. Said application was opposed by the appellant on the ground that the elder brother of the deceased was not a dependent in terms of provisions of Section 2(1)(d) of the said Act. Said application was allowed and by the impugned judgment dated 30/06/2014, the learned Commissioner under the said Act granted compensation of an amount of Rs.4,78,560/- with interest @ 12% p.a. Being aggrieved, the Insurance Company has filed the present appeal.
2. Shri A. J. Pophaly, learned counsel for the appellant submitted that as the respondent No.1 who was the elder brother of the employee concerned was not a “dependent” as per the provisions of Section 2(1)(d) of the said Act, no amount of compensation could have been awarded in aforesaid proceedings. It was submitted that the provisions of the said Act recognise the entitlement only of a dependent to claim compensation. As the respondent No.2 was not a dependent as per provisions of Section 2(1)(d) of the said Act, he could not have been awarded any compensation. Relying upon provisions of Section 8 of the said Act, it was then submitted that in case of death of an employee, the amount of compensation has to be distributed amongst the dependents and the elder brother of the deceased employee not being covered under definition of the expression “dependent” as per Section- 2(1)(d) of the said Act, the claim could not have been allowed. In support of his submissions, the learned counsel placed reliance on the following decisions :
(i) B. M. Habeebullah Marciar v. Periaswami & ors., 1977 A.C.J. 517
(ii) National Insurance Co. Ltd. v. Mst. Param Pal Singh, (2008) ACC 515
(iii) Mayfield Estate Nallakottah, Nilgiris v. Krishnan, 1984 A.C.J. 295
(iv) National Insurance Co. Ltd. v. Rana Dev Sutradhar & ors. III (2007) ACC 313 (DB)
(v) Gopal Synthetics v. Workmen's Compensation Commissioner, Kota and ors., 1994 LAB. I.C. 1968
(vi) Sureshkumar and ors. v. Smt. Urmila and ors., 1999 LAB. I. C. 2872
(vii) Divisional Manager, New India Assurance Co. Ltd. Rourkela v. Shyam Bahadur Singh and ors., 2003 LAB I. C. 598
(viii) National Insurance Co. Ltd. v. Sharanappa and anr., 2007 ACJ 2466
3. Per contra Shri A.J. Pathak, learned counsel for the respondent No.1 supported the impugned judgment. According to him the respondent No.1 had been brought on record in the capacity of legal representative of the deceased employee and not as a dependent. According to learned counsel, if the employee had died in the accident, only then a dependent as defined by Section 2 (1)(d) of the said Act could claim the compensation. The present was a case where an injured employee had himself filed proceedings for compensation and he had expired more than a year after filing said proceedings. Referring to provisions of Section 8(6) of the said Act, it was urged that compensation could also be paid to a person not being a dependent who was otherwise entitled to the same. The learned counsel therefore submitted that the amount as awarded by the learned Commissioner was by treating the respondent No.1 as legal representative of the deceased employee and hence there was no reason