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1988 Supreme(Ker) 34

Judges : MALIMATH,BHASKARAN NAMBIAR
Commr for workmens compensation - Appellant
Versus
Mohanan - Respondent
Case No : Ref. C. No.1 of 1987 under S.27 of Workmen s Compensation Act
Decided On : 01/15/1988
Advocates Appeared :
Government Pleader; For Applicant Siby Mathew; For Respondents S. A. Nagendran; As amicus curiae

The main legal point established in the judgment is that the compensation amount, once deposited with the Commissioner, becomes the property of the sole dependant of the deceased workman, and if the sole dependant dies prior to the allotment of that compensation, the said amount devolves on the heirs of the dependant and not on the heirs of the deceased workman.

Headnote:

Workmen's Compensation - Compensation Amount and Heirs - S.3, S.4A, S.9 of the Workmen's Compensation Act

Fact of the Case:

Gopalan, a workman, died in a work-related accident. The employer deposited the compensation amount with the Commissioner for Workmen's Compensation, designating Gopalan's widow as the sole dependant. Before the amount could be paid to her, she died. The son of the deceased widow claimed the amount, and objections to the claim were invited. The Commissioner had doubts about disbursing the amount to the heir of the dependant.

Finding of the Court:

The court analyzed the provisions of the Workmen's Compensation Act and concluded that the compensation amount, once deposited with the Commissioner, becomes the property of the sole dependant of the deceased workman. If the sole dependant dies prior to the allotment of that compensation, the said amount devolves on the heirs of the dependant and not on the heirs of the deceased workman, regardless of opposition.

Issues: The key issue was whether the compensation amount deposited with the Commissioner becomes the property of the sole dependant of the deceased workman and the devolution of the amount if the sole dependant dies prior to the allotment of the compensation.

Ratio Decidendi: The court emphasized that the Act imposes a statutory liability on the employer to pay compensation to workmen who suffer personal injury by accident arising out of employment. The right to compensation arises immediately upon injury or death, and the liability to pay compensation is not postponed. The Act also specifies that the compensation amount cannot be assigned, charged, or attached, and it cannot pass to any person other than the workman or his dependants. The court held that the Commissioner's jurisdiction is limited to deciding the entitlement of the dependant to the compensation at the time of the workman's death, and the Commissioner is bound to pay the amount to the heirs of the dependant if the dependant dies prior to the allotment of the compensation.

Final Decision: The court held that the compensation amount deposited with the Commissioner becomes the property of the sole dependant of the deceased workman, and if that sole dependant dies prior to the allotment of that compensation, the said amount would devolve on the heirs of the dependant and not on the heirs of the deceased workman, whether there is opposition or not.

Judgment :-

1. The Commissioner for Workmen's Compensation, Kottayam, has referred the following question of law for the decision of this Court under S.27 of the Workmen's Compensation Act:

"Whether the compensation amount deposited with the Commissioner for workmen's compensation becomes the property of the sole dependant of the deceased workman in case nobody opposes to that, and further, if that sole dependant dies prior to the allotment of that compensation whether the said amount devolve to bis or her heirs?"

2. Gopalan, a workman died on 22nd February, 1986 by accident arising out of and in the course of his employment in a Tea estate. The employer accepted the liability for compensation and deposited the compensation amount of Rs. 21,000/- with the Commissioner for Workmen's Compensation. He also submitted a statement in Form A showing that Thankamma, the widow, was the sole dependant of the deceased workman. Before the amount could be paid to her, she died on 20th November, 1986. In January, 1987, Mohanan, a son of the deceased Thankamma, claimed the amount on the strength of a succession certificate issued by the Administrator General in respect of the estate of Thankamma. Objections to the claim were invited by necessary publication. There was no objection from any quarter. But the Commissioner, entertained some doubts as to whether the amount could be disbursed to the heir of the dependant of the deceased workman The deceased workman had only one heir, his widow, dependant on him when he died. That sole dependant was entitled to the compensation amount. If the amount due to that dependant cannot be disbursed to the heirs, on her death, the amount naturally will have to be returned to the employer. A jurisdictional issue of the Commissioner to order payment in such cases arises for determination. The question of law formulated by the Commissioner was therefore referred to this Court under S.27 of the Act.

3. S.3 of the Act imposes a statutory liability on the employer to pay compensation in accordance with the provisions of the Act, to workmen who suffer personal injury by accident arising out of and in the course of employment. The amount of compensation is also fixed under the Act and S.4A insists that 'compensation under S.4 shall be paid as soon as it falls due'. Where the injury results in death, the compensation payable under the Act to the dependants of the deceased workman cannot be paid direct to them by the employer; the amount has to be deposited with the Commissioner. The Commissioner, after due notice and conducting the necessary enquiries, can direct apportionment of the amount payable among the dependants of the deceased workman or any of them in such proportion as the Commissioner thinks fit or may, in his discretion be allotted to any one of the dependants.

4. The answer to the question depends on a correct understanding of the scheme of the Act and the limited jurisdiction conferred on the Commissioner.

5. The right to compensation under the Act arises when a workman is injured by accident arising out of and in the course of his employment. The injury may result in death. Therefore, the liability to pay compensation is fastened immediately when the workman is injured or when be dies. The liability is not postponed because the payment is delayed. The right to receive compensation, frozen on the date of injury or death has to be worked out under the Act.

6. In the event of the death of the workman, the compensation is payable to his dependants, defined in S.2 (d) of the Act. If no dependants exist, the Commissioner is bound to direct the return of the compensation deposited to the employer. If there is more than one dependant, it is the Commissioner who has the discretion to apportion the compensation in such proportion as he deems fit and he has also the discretion to choose only one of these dependants for paying the entire compensation.

7. The compensation payable under the Act can not be assigned or cha













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