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2025 Supreme(Gau) 1339

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
BUDI HABUNG, J.
 
Reliance General Insurance Co. Ltd. - Appellant 
Versus
Must. Monowara Begum And Anr - Respondents 
MFA 13 of 2023
Decided on : 21-08-2025

Advocates Appeared:
For the Appellant : MS L SHARMA, MR.K K BHATTA, MR.J JOHN, MR.K K BHATTACHARYYA
For the Respondent: MR.M ISLAM, MR.M DUTTA

Amendments to wage ceilings in the Employees' Compensation Act cannot apply retrospectively to accidents occurring prior to their enactment.

Headnote:(A) Employees' Compensation Act, 1923 - Section 4 - Appeal under Section 30 challenging the Labour Officer's compensation award of Rs. 6,11,180/- including Rs. 6,000/- monthly salary and Rs. 15,000/- for funeral expenses - Insurance Company's contention that the applicable wage ceiling should be Rs. 4,000/- per month, due to statutory provisions at the time of the accident. (Paras 5, 10)

(B) Retrospective application of amended wage ceilings - Court ruled that amendments affecting substantive rights cannot be applied retroactively unless specified by legislation, supporting the decision in Oriental Insurance Company Ltd. v. Siby George. (Paras 7, 11)

(C) The claim was filed due to the death of the respondent’s husband, employed as a labourer, leading to a petition for Rs. 18,00,000/- in compensation due to loss of income. (Paras 3, 4)

Findings of Court:
The monthly salary calculation should be reverted to Rs. 4,000/- as it aligns with the unamended Act provisions. (Paras 11, 15)

Issues: The main issue concerned the applicable wage ceiling for calculating compensation post-accident, with consideration of existing legislative frameworks.

Ratio Decidendi: The court determined the improper application of post-amendment wage limits in calculating compensation, reinforcing limitations on retrospective law application.

Result: Appeal allowed in part, modification ordered.

Table of Content
1. accident details and compensation claim. (Para 3 , 4)
2. appellant's challenge on compensation basis. (Para 5 , 6 , 7)
3. legal interpretation of salary ceiling. (Para 10 , 11)
4. dispute over funeral expenses. (Para 12)
5. modification of monthly salary in compensation. (Para 14 , 15)
6. final disposition of the appeal. (Para 16 , 17 , 18 , 19 , 20 , 21)

JUDGMENT :

BUDI HABUNG, J.

Heard Mr. K. K. Bhatta, learned counsel for the appellant. Also heard Mr. M. Islam, learned counsel, appearing on behalf of respondent No. 1/claimant.

2. The instant appeal, under the provisions of Section 30 of the Employees' Compensation Act, 1923(formerly known as Workmen's Compensation Act, 1923), has been preferred by the Insurance Company, challenging the judgment & order, dated 02-07-2014, passed by the Labour Officer-cum-Commissioner, Employees' Compensation, Darrang, Mangaldai, in Case No. MWC-01/2010, whereby, a compensation of Rs. 6,11,180/-, was granted to the respondent No. 1/claimant. The award includes granting Rs. 6,000/-, as the monthly salary of the deceased and Rs. 15,000/-, as funeral expenses, in favour of the respondent No. 1/claimant. Aggrieved by the said award, the appellant has preferred the present appeal.

3. The brief facts leading to the filing of this appeal, is that the husband of the respondent, herein, while employed as a permanent labourer of a truck bearing Registration No. NL-01/0372, met with a motor accident on 10-09-2009 and died in the same accident. The respondent's wife i.e. the appellant, herein, having 4(four) minor children and no other source of income, filed a petition under the provisions of Sections 3 and 4 of the Workmen’s Compensation Act, 1923, claiming compensation of an amount of Rs. 18,00,000/-.

4. The case of the applicant i.e. respondent No. 1/claimant, before the Motor Accident Claim Tribunal was that her deceased husband was earning Rs. 6,000/-, per month, as monthly salary and besides the above amount, he also earned an agricultural income of Rs. 30,000/-, annually. The Labour Officer-cum-Commissioner, Employees' Compensation, Darrang, Mangaldai, upon consideration of the evidence, accepted the monthly salary of the deceased husband of the respondent No. 1/claimant, as Rs. 6,000/-, per month, and awarded the compensation, accordingly. In addition to the above amount; an amount of Rs. 15,000/- was granted towards funeral expenses. The total compensation amount, so awarded by the Labour Officer-cum-Commissioner, Employees' Compensation, Darrang, Mangaldai, was Rs. 6,11,180/-.

5. Being aggrieved by the impugned judgment & order, dated 02-07- 2014, passed by the Labour Officer-cum-Commissioner, Employees' Compensation, Darrang, Mangaldai, in Case No. MWC-01/2010; the appellant Insurance, at the outset, has contended that on the date of accident, i.e., 10-09-2009, the statutory wage ceiling prescribed under the provisions of Section 4 of the Employees' Compensation Act, 1923, as per Notification No. GSR-30(E), dated 31-01-2000, was Rs. 4,000/-, per month, only. Therefore, the enhanced ceiling of Rs. 6,000/-, per month, as notified, subsequently; cannot be applied retrospectively under the provisions of Section 4 of the Employees' Compensation Act, 1923.

6. Mr. Bhatta, learned counsel for the appellant Insurance Company, at the outset, has contended that the Labour Officer-cum-Commissioner, Employees' Compensation, Darrang, Mangaldai, had erred in awarding Rs. 15,000/-, towards funeral expenses of the deceased husband of the respondent No. 1/claimant, herein, when, only an amount of Rs. 2,500/-, was permissible under the then prevailing provisions of law.

7. Mr. Bhatta, learned counsel, in this connection, has placed reliance on a decision of the Hon'ble Supreme Court rendered in the case of Oriental Insurance Company Ltd. v. Siby George & ors., reported in (2012) 12 SCC 540, wherein, it has been held that the amendment to the Employees’ Compensation Act, 1923, enhancing the monthly wa

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