The Workmen's Compensation Act prohibits direct payment of compensation by the employer and does not allow deduction for ex-gratia payments, aiming to protect the dependents of the deceased workman against exploitation or fraud by the employer.

JUDGMENT :

Tarlok Singh Chauhan, J.

1. The appeal has been admitted on the following substantial question of law:-

"Whether the Commissioner under the Workman Compensation Act was not justified to deduct the advance payment paid by the department at the time of death, whereas such advance payment should have been deducted by the Commissioner when the final award was passed?"

2. However, before proceeding to determine the aforesaid question certain minimal facts need to be noticed.

3. On 1.10.2005 deceased Hem Singh was working on road near Kholighat along with other beldars. While hammering the stone, he suddenly fell down and became unconscious. He was taken to the PHC Kholighat for treatment, where he was declared dead by the Doctor. The respondents, who are the legal representatives of Hem Singh, approached the Commissioner below for grant of compensation on account of death of Hem Singh in accordance with Workmen's Compensation Act, 1923 (in short the ‘Act’).

4. The notices were served upon the appellants, who, in their reply, admitted the facts of the case.

5. After recording the evidence and evaluating the same, the Commissioner below vide order dated 23.9.2008 awarded the compensation of Rs. 3,73,800/- along with interest @ 12% per annum.

6. The only claim putforth by the appellants is that the department had paid D.C.R.G. G.I.S. leave salary, ex-gratia, etc. of Rs. 1,29,888/- to the widow of the deceased Hem Singh, therefore, this amount was liable to be deducted out of the total compensation and having failed to do so, the impugned order passed by the Commissioner below to this extent is unsustainable in law.

7. I have heard the learned Additional Advocate General, appearing for the appellants- State and have also gone through the records of the case carefully.

8. Before delving into the merits of the case, certain provisions of the Act need to be noticed, which are reproduced as under:-

"8. Distribution of compensation:

(1) No payment of compensation in respect of a workman whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation:

Provided that, in the case of a deceased workman, an employer may make to any dependent advances on account of compensation not exceeding an aggregate of one hundred rupees, and so much of such aggregate as does not exceed the compensation payable to that dependent shall be deducted by the Commissioner from such compensation and repaid to the employer.

28. Registration of agreements:-

(1) Where the amount of any lump sum payable as compensation has been settled by agreement, whether by way of redemption of a half-monthly payment or otherwise, or where any compensation has been so settled as being payable to a woman or a person under a (legal disability) a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on being satisfied as to its genuineness, record the memorandum in a register in the prescribed manner:

Provided that:-

(a) no such memorandum shall be recorded before seven days after communication by the Commissioner of notice to the parties concerned.

(c) the Commissioner may at any time rectify the register.

(d) where it appears to the Commissioner that an agreement as to the payment of a lump sum whether by way of redemption of a half-monthly payment or otherwise, or an agreement as to the amount of compensation payable to a woman or a person under a (legal disability ought not to be registered by reason of the inadequacy of the sum or amount, or by reason of the agreement having been obtained by fraud or undue influence or other improper means, he may refuse to record the memorandum of the agreement and may make such order) including an order as to any sum already paid under the agreement, as he thinks just in the circumstances.

(2) An agreement