High Court of Kerala
K.K. Usha, K.S. Radhakrishnan, S. Sankarasubban, JJ.
New India Assurance Co Ltd - Appellant
Versus
P Chandran & Ors - Respondent
M.F.A. No. 134 of 1990
Decided On : 06-04-1998
The court considered whether the amended provisions of Sections 4 and 4-A of the Workmen's Compensation Act, 1923, enhancing the amount of compensation and rate of interest, would be applicable to claims arising from accidents occurring prior to September 15, 1995. The court held that the amended provisions were not applicable to claims originating from accidents occurring before September 15, 1995. The court also discussed the legal principles related to the liability of employers to pay compensation and the determination of compensation under the Act.
K.S. Radhakrishnan, J.
1. The question that is posed for consideration before the Full Bench is as to whether Sections 4 and 4-A of the Workmen's Compensation Act, 1923, as amended by Act 30 of 1995, enhancing the amount of compensation and rate of interest would be applicable to claims in respect of death or permanent disablement resulting from accident which occurred prior to September 15, 1995, the date on which the amended provisions came into force.
2. A Division Bench of this Court in Oriental Insurance Co. Ltd. v. Majeed (1996 2 KLT 1022 held the benefits of Sections 4 and 4-A as amended would be extended only in respect of claims arising out of the accident occurred on or after September 15, 1995. Same is the view taken by the same Division Bench in Oriental Insurance Co. Ltd. v. Abdul Nazar, (1997) 1ILR 496. A contrary view was taken by another Division Bench in Oriental Insurance Co. Ltd. v. Asokan (1997 (1) KLT 608. That Bench relied on a decision of the Supreme Court in Civil Appeal Nos. 16904 to 16909 of 1996 dated November 6, 1996, and held that the benefits of the amended provisions of Sections 4 and 4-A would be available when the claim is finally adjudicated, whether the death or permanent disablement resulting from the accident occurred prior to September 15, 1995 or not. It was also held that in view of the above mentioned decision of the Supreme Court, the earlier Division Bench decision in Majeed's case (supra) is impliedly overruled. We are, therefore, called upon to resolve this apparent conflict between the above mentioned two Bench decisions.
3. The Workmen's Compensation Act, 1923 was enacted to provide for payment by certain classes of employers to their workmen of compensation for injury caused to a workman by accident arising out of and in the course of his employment. Act also provides separate and speedy forum to the workmen for claiming compensation and for this purpose wide powers have been bestowed on the Commissioners appointed under the Act. It is the duty of the employer or insurer, as the case may be, to pay compensation as soon as it falls due. The amount of compensation to be paid is enumerated in Section 4 of the Act
4. We shall deal with the unamended provisions of Section 4(1) and Explanation II as also Section 4-A(3) first and then refer to the amendment effected to the above mentioned provisions by Act 30 of 1995. The unamended provisions of Section 4(1) and Explanation II as also Section 4-A(3) read as follows :
"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 forty percent of monthly wages of the deceased workman multiplied by the relevant factor Or An amount of twenty thousand rupees, whichever is more; |
| (b) | Where permanent total disablement results from the injury | An amount equal to fifty per cent of the monthly wages of the injured workman multiplied by the relevant factor, Or an amount of twenty four thousand rupees whichever is more. |
Or
an amount of twenty four thousand rupees whichever is more.
Explanation II- Where the monthly wages of a workman exceed one thousand rupees, his monthly wages for the purposes of Clause (a) and Clause (b) shall be deemed to be one thousand rupees only,
.........."
"4A. Compensation to be paid when due and penalty for default :.
.........
(3) Where an employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner may direct that, in addition to the amount of arrears, simple interest at the rate of six per cent per annum on the amount due together with, if in the opinion of the Commissioner there is no justification for the delay, a further sum not exceeding fifty per cent of such amount shall be recovered from the em
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