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2019 Supreme(Bom) 1181

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, BENCH AT NAGPUR
R.K. Deshpande, Vinay Joshi, JJ.
State of Maharashtra - Appellant
Versus
Learned Judge, Labour Court & Commissioner for Workmen's Compensation, Buldhana - Respondent
First Appeal No.335 of 2016
Decided On : 19-08-2019

Advocates Appeared:
For the Appellant : Shri N.S. Rao, Assistant Government Pleader
For the Respondent: Shri N.B. Kalwaghe, Adv.

Headnote:

Maharashtra Employment Guarantee Act, 1977 – Section 16,7(2)(xiv) and 22 – Accident - Seeking compensation - One husband of the respondent was employed with Social Forestry Division - He was engaged for doing work of planting trees, digging pits, watering plants, etc., and was paid wages -Said one met with an accident during course of employment when tractor in which he was travelling, fell in a pit and overturned - He succumbed to the injuries sustained in the accident - Respondent Nos.2 to 5 are claimants, who filed proceedings for grant of compensation under Section 22 of Workmen’s Compensation Act, 1923 - In the reply filed by appellate-State Government, it was the stand taken that deceased was employed as a Labour by the Social Forestry Department under the Mahatma Gandhi Rural Employment Scheme - It was stated that family of deceased was paid /as ex gratia amount o as per the provision of Section 7(2)(xiv) of Maharashtra Employment Guarantee Act, 1977and application for compensation was not maintainable - Whether by virtue of provisions of Section 16 of the Act of 1977, an employee who has received ex gratia payment under Section 7(2)(xiv) of Act of 1977 is precluded from seeking compensation under Section 22 of Act of 1923 – Held, benefits under both enactments are conferred on an employee suffering an injury or on the legal heirs of an employee, who succumbed to injuries caused in accident arising out of and in course of his employment with his employer - If an employee or his legal heirs is/are entitled to different kinds of benefits under State and Central enactments, it cannot be denied to him or to his legal heirs, unless there is a provision to exclude the applicability of other enactment or there is a provision to deduct amount earlier granted in one enactment operating in the field, because both enactments are beneficial and welfare legislations provision of Section 16 operates only in case of conflict or inconsistency between Act of 1977 and any other law in force on subject - Court reading of Section 16 is that the provisions of the Act of 1977 are in addition to provisions contained in any other law for time being in force, and it is clear from expression - It neither does exclude the applicability of provisions of the other enactments in force nor it is in derogation of it - Court find that the provision of Section 16 of the Act of 1977 cannot be read to exclude applicability of any other law for time being in force and the decision in Tukaram Pandurang Dedhes case, cited supra, misreads the said provision to exclude such applicability - Court overrule the said decision - In the light of the aforesaid discussion, court answer the question of law referred to and hold that by virtue of provision of Section 16 of the Maharashtra Employment Guarantee Act, 1977, an employee, who has received ex gratia payment under Section 7(2)(xiv) of the said Act, is not precluded in seeking compensation under any of the provisions of the Workmen’s Compensation Act, 1923 – Order accordingly.

JUDGMENT :

R.K. Deshpande, J.

1. This is the reference by the learned Single Judge (Shri A.S. Chandurkar, J.) of the following question of law for consideration by the Larger Bench.

“Whether by virtue of provisions of Section 16 of the Act of 1977, an employee who has received ex gratia payment under Section 7(2)(xiv) of the Act of 1977 is precluded from seeking compensation under Section 22 of the Act of 1923?”

2. The factual position, as is narrated in the order of reference, can be reiterated. One Ganesh Kakar, the husband of the respondent No.2, was employed with the Social Forestry Division, Buldhana. He was engaged for doing the work of planting trees, digging pits, watering plants, etc., at Taluka Motala and was paid wages at the rate of Rs.127/per day. On 20-12-2011, the said Ganesh met with an accident during the course of employment when the tractor in which he was travelling, fell in a pit and overturned. Ganesh succumbed to the injuries sustained in the accident.

3. The respondent Nos.2 to 5 are the claimants, who filed the proceedings for grant of compensation under Section 22 of the Workmen's Compensation Act, 1923 [for short, “the Act of 1923”]. In the reply filed by the appellate-State Government, it was the stand taken that the deceased Ganesh was employed as a Labour by the Social Forestry Department under the Mahatma Gandhi Rural Employment Scheme. It was stated that the family of the deceased was paid Rs.50,000/as ex gratia amount on 17-5-2012 as per the provision of Section 7(2)(xiv) of the Maharashtra Employment Guarantee Act, 1977 [for short, “the Act of 1977”] and, therefore, the application for compensation was not maintainable.

4. In the decision of the learned Single Judge of this Court in the case of Executive Engineer, Ujani Canal Division No.6, Pandharpur and another vs. Tukaram Pandurang Dedhe, reported in 1991 (1) Mh.L.J. 783, the same question of maintainability arose for consideration. After taking into consideration the provisions of Section 7(2)(xiv) of the Act of 1977, which provided for ex gratia payment in case of the death of any person employed under the Scheme by accident arising out of and in course of employment, it was held that the provisions of the Act of 1977 shall have overriding effect by virtue of Section 16 therein and, therefore, the compensation provided under the provisions of Section 22 of the Act of 1923 would not be available. Para 4 of the said decision being relevant, is reproduced below :

“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 aspects 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 1977 is to mitigate the agnony 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. Provisions on the subject of compensation under the Act of 1923 are apparently in conflict and are inconsistent with those provided under the Act of 1977. In view of section 16, the provisions in this regard, under the Act of 1977, due to overriding effect shall prevail over those under the Act of 1923.”

5. The learned Single Judge in the order of reference did not agree with the view ( i) that even if the Legislature has used the nomenclature of ex gratia payment, that is analogous and at pa

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