2002 Supreme(Gau) 170
GAUHATI HIGH COURT
R.S.Mongia, I.A.Ansari, JJ.
Oriental Insurance Company Ltd. -Appellant
Versus
Phuljheria Mussamat and Anothers -Respondent
M.F.A.No. 68 of 2001
Decided On : 23-04-2002
A.Hazarika , M.Bordoloi, D.Singha, D.Sur
The compensation under the Workmen's Compensation Act should be calculated based on the provisions existing at the time of the accident, and not at the time of the award.
Headnote:
Workmen's Compensation Act - Assessment of Compensation - Section 4 - 1923 - Summary: The court determined whether the compensation under the Workmen's Compensation Act should be assessed based on the provisions at the time of the accident or at the time the award is given. The court referred to Section 4 and Explanation II of the Act and discussed the relevant amendments and their applicability. The court relied on previous judgments and held that the compensation should be calculated based on the provisions existing at the time of the accident. The court reduced the awarded compensation accordingly.
Fact of the Case:
The deceased, a bus driver, met with an accident and died. His heirs filed a claim for compensation under the Workmen's Compensation Act. The owner of the vehicle and the insurance company denied liability for compensation. The Commissioner assessed the compensation, and the appeal was filed against the award.
Finding of the Court:
The court held that the compensation should be calculated based on the provisions existing at the time of the accident, and not at the time of the award. The court reduced the awarded compensation accordingly.
Issues: Assessment of compensation under the Workmen's Compensation Act, applicability of amendments to the Act, and liability of the insurance company for compensation.
Ratio Decidendi: The compensation under the Act should be calculated based on the provisions existing at the time of the accident. Amendments to the Act do not apply retroactively to accidents that occurred before the amendments.
Final Decision: The court allowed the appeal to the extent that the compensation awarded was reduced based on the provisions existing at the time of the accident.
Whether the amount of compensation under the Workmen's Compensation Act, 1923 (hereinafter referred to as the Act) is to be assessed under Section 4 as per the provisions as these exist on the date the accident occurs or on the date the Tribunal under Workmen's Compensation Act gives the award ?
2. The aforesaid question calls for our determination in the present appeal. Briefly stated, one Deodhar Mahato, driver of the bus No. AS-02/8046 (Super Bus) owned by Shri Tarini Kanta Bora which was duly insured with the Oriental Insurance Company Ltd., while driving the same in the course of his employment met with an accident on 10.7.99 and unfortunately he died on 11.7.99 due to the injuries suffered in the accident. The heirs of the deceased filed a claim petition for compensation under the Workmen's Compensation Act, 1923 before the Commissioner, Workmen's Compensation, Nagaon which was registered as Case No. NWC 92/99. The owner of the vehicle filed written statement wherein he denied the contentions of the claimant petitioner in all respects and also denied the responsibility for payment of compensation, the plea being that the vehicle was duly insured with M/s. Oriental Insurance Company Ltd., the appellant herein. The fact that the vehicle was duly insured with the appellant Insurance Company is not in dispute. The Insurance Company also filed a written statement denying its liability of payment of compensation on all available grounds. After filing the written statement the owner of the vehicle did not produce any evidence. Similarly, the Insurance Company also did not adduce any evidence in support of its case. The Commissioner under the Workmen's Compensation Act assessed the income of the deceased as Rs. 40007- per mensem and on that basis assessed the compensation at Rs.3,19,6007-under Section 4 of the Act together with simple interest @ 12% per annum thereon and Rs. 40007- as cost of funeral. The apportionment between the claimants was to be done at the time of final disposal of the claim. Against the aforesaid award the present appeal has been filed.
3. The question raised by the learned counsel for the appellant Insurance Company is that even if it is assumed that the Income of the deceased on the date of death, i.e. 11.07.99, was Rs. 4,000/- per mensem, yet as per Explanation II under Section 4 of the Act his monthly wages for the purpose of compensation would be reckoned as Rs. 2,000/-. Explanation II to Section 4 was amended only on 8.12.2000 and, therefore, the said amendment could not have been applied to the claims arising out of the accidents which occurred prior to the amendment on 8.12.2000. The income could not be reckoned as Rs. 4000A per mensem. That is the only point raised by the learned counsel for the appellant.
4. We have heard learned counsel for the parties. The matter should not detain us in view of a three Judges judgment of the Apex Court in Kerala State Electricity Board and Another vs. Valsalka K. and another, reported in (1999) 8 SCC 254. In that case, it was specifically held that cases where accident took place prior to the amendment, but decided subsequent to the amendment, such cases would not attract the enhanced rate introduced by the amendment. In the present case, on the date of death i.e. 11.07.99, Section 4 of the Act and Explanation II thereto reads as under-
"4. Amount of Compensation - (1) Subject to the provisions of this Act the amount of compensation shall be as follows, namely -
(a) Where death results from the injury An amount equal to fifty percent of the monthly wages of the deceased workmen multiplied by the relevant factor.
Or
An amount of fifty thousand rupees which ever is more;
(b) Where permanent total disablement results from the injury An amount equal to sixty percent of the monthly wages of the injured workmen multiplied by the relevant factor.
Or
An amount of sixty thousand rupees which ever is more.
Explanation-11 - Where the monthly wages of a workman