IN THE HIGH COURT OF DELHI AT NEW DELHI
Manoj Kumar Ohri, J.
Shokeen – Appellant
Versus
M/s Oriental Insurance Co. Ltd. & Anr. – Respondents
FAO 335 of 2018 and CM APPL. 17719 of 2020
Decided On : 07-02-2023
Employees' Compensation Act - Compensation Claim - Section 22 - Rule 24(2) of Workmen's Compensation Rules, 1924 - The court discussed the importance of citing reasons in an order and the principles of natural justice. It also highlighted the beneficial nature of the Employees' Compensation Act and the need to interpret its provisions in a manner that does not deprive employees of its benefits.
Fact of the Case:
The appellant filed a compensation claim under Section 22 of the Employees' Compensation Act, 1923 after sustaining injuries in a work-related accident. The claim was initially permitted to be withdrawn without granting liberty to file a fresh claim.
Finding of the Court:
The court found that the order permitting withdrawal of the claim lacked reasons and deprived the appellant of his statutory right to seek compensation. It emphasized the importance of citing reasons in an order and the principles of natural justice.
Issues: The issues revolved around the legality of the order permitting withdrawal of the claim without granting liberty to file a fresh claim and the application of the Employees' Compensation Act.
Ratio Decidendi: The court emphasized the need for orders to be supported by reasons, highlighted the beneficial nature of the Employees' Compensation Act, and stressed the interpretation of its provisions to ensure employees are not deprived of its benefits.
Final Decision: The impugned order was set aside, and the claim petition of the appellant was revived to be decided on merits in accordance with the law.
JUDGMENT
Manoj Kumar Ohri, J. (Oral)
1. The present appeal has been instituted under Section 30 of the Employees' Compensation Act, 1923 (hereinafter, the 'Act') on behalf of the appellant/claimant assailing the order dated 08.09.2017 passed by the learned Commissioner, Employees' Compensation (hereinafter, 'CEC'), District- East/North-East, Delhi in Case No.WC/25/WD/17.
2. In his petition filed before CEC, District West for compensation under Section 22 of the Act, the appellant claimed that he was employed as a cleaner with respondent No.2 on vehicle bearing No. RJ-14-GB-2101 (Truck). It was stated that he was getting wages at the rate of Rs.4,000/- per month plus Rs.150/- as food allowance.
On 27.08.2009, he met with an accident while tightening a rope over the truck during the course of employment. The accident had occurred as the rope the appellant was tying snapped and he fell from a height. Reportedly, the appellant received grievous injuries due to the accident, for which he also remained hospitalized. It was claimed that he had become 100% disabled for the purpose of employment as a cleaner.
3. The appellant preferred his claim petition before CEC, District-West on 07.03.2017, whereafter the case was transferred to CEC, District-East. On 08.09.2017, the appellant submitted an application for withdrawal of the claim petition with liberty to file afresh. Though the claim application was permitted to be withdrawn by the learned Commissioner on 08.09.2017 itself, no liberty was given to file a fresh claim.
4. Learned counsel for the appellant has assailed the impugned order by contending that the order is illegal, as the same deprived the appellant of his statutory right to seek compensation.
5. Learned counsel for respondent No.1, on the other hand, has supported the impugned order.
6. I have heard learned counsels for the parties and perused the material on record.
7. A perusal of the case records would show that the appellant's compensation application filed before CEC, District West was permitted to be withdrawn on account of an application filed on his behalf. In the withdrawal application filed before CEC, District East, it was prayed that the appellant may be allowed to withdraw in order to pursue a fresh claim in terms of Rule 24(2) of Workmen's Compensation Rules, 1924. This Court is constrained to note that though the appellant's claim petition was permitted to be withdrawn, no liberty was given. Neither the appellant's claim petition was considered on merits nor any reason was given to deny liberty.
8. Time and again, the Supreme Court has taken the view that reasons form the heart and soul of every order/pronouncement, and as such, the importance of citing reasons in an order cannot be gainsaid. To elucidate, in Secretary and Curator, Victoria Memorial Hall v. Howrah Ganatantrik Nagrik Samity and Others reported as (2010) 3 SCC 732, it was opined as follows:
"40. It is a settled legal proposition that not only administrative but also a judicial order must be supported by reasons, recorded in it. Thus, while deciding an issue, the court is bound to give reasons for its conclusion. It is the duty and obligation on the part of the court to record reasons while disposing of the case. The hallmark of an order and exercise of judicial power by a judicial forum is to disclose its reasons by itself and giving of reasons has always been insisted upon as one of the fundamentals of sound administration of justice-delivery system, to make known that there had been proper and due application of mind to the issue before the court and also as an essential requisite of the principles of natural justice. "The giving of reasons for a decision is an essential attribute of judicial and judicious disposal of a matter before courts, and which is the only indication to know about the manner and quality of exercise undertaken, as also the fact that the court concerned had really applied its mind. " (Vide State of Orissa v. Dha
The main legal point established in the judgment is the importance of citing reasons in an order, the beneficial nature of the Employees' Compensation Act, and the need to interpret its provisions in....
The main legal point established in the judgment is the importance of providing reasons in orders, granting liberty when allowing withdrawal of claim petitions, and interpreting labor statutes as ben....
Object for enacting Employees' Compensation Act even as early as 1923 was to ameliorate hardship of economically poor employees.
Labour statutes like the EC Act should be liberally construed in favor of employees for their welfare.
The court emphasized the need for evidence to prove material issues in a claim petition and the limited scope of interference in an appeal under Section 30 of the Employees' Compensation Act, 1923.
The central legal point established in the judgment is that in cases of disputed liability, the party should be granted an opportunity to lead evidence and cross-examine to prevent a miscarriage of j....
The court reiterated that all judicial orders must include explicit reasoning to be valid, ensuring adherence to natural justice principles.
The appellate jurisdiction of the High Court in an appeal under Section 30 of the Employees' Compensation Act is confined only to examine substantial questions of law, and findings of fact proved eit....
A claim deemed non-maintainable due to statutory provisions prevents the adjudicating authority from making further observations on merits; such findings are considered extraneous and non-binding.
The court affirmed that under the Employees Compensation Act, the restoration of an employee's claim petition is permissible to uphold justice for the weaker section, but cautioned against repeated f....
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