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2022 Supreme(J&K) 735

IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
Rajesh Sekhri, J.
Divisional Manager, JKSFC Bhaderwah – Petitioner
Versus
Mohd. Sharief – Respondent
MA No. 566/2010 & IA No. 823/2010
Decided On : 09-11-2022

Advocates:
Advocate Appeared:
For the Petitioner: Vipan Gandotra
For the Respondent: M.P. Gupta

IMPORTANT POINT
An employer appealing against a compensation award under Section 30(1)(a) of the Workmen's Compensation Act must deposit the awarded compensation amount, but is not required to deposit interest or penalty amounts to maintain the appeal.

Headnote:

WORKMEN'S COMPENSATION - COMPENSATION CLAIM - Workmen's Compensation Act, 1923 - Sections 4, 5, 10, 30 - The court discussed the provisions of the Workmen's Compensation Act, particularly Sections 30 and 4A, which govern the appeal process and the requirements for employers appealing against compensation awards. The court interpreted the third proviso to Section 30(1), emphasizing that an employer must deposit the compensation amount to maintain an appeal, but not necessarily the interest or penalty. This interpretation influenced the court's decision to allow the appeal to be considered on its merits despite the employer's failure to deposit interest.

Fact of the Case:

The respondent, a laborer, sustained injuries in an accident while employed by the appellant in 1998. After an initial rejection of his compensation claim by the Assistant Labour Commissioner (ALC), the court remanded the case for reconsideration, leading to an award of compensation which the appellant contested on various grounds, including procedural violations and the absence of a necessary party.

Finding of the Court:

The court found that the ALC had correctly awarded compensation to the respondent based on established employment and accident facts. The court also determined that the appeal was maintainable despite the appellant's failure to deposit interest, as the law only required the deposit of the compensation amount for appeals under Section 30(1)(a).

Issues: Whether the appeal was maintainable without the deposit of interest and whether the ALC's award was valid given the appellant's claims regarding procedural violations and necessary parties.

Ratio Decidendi: The court held that the third proviso to Section 30(1) of the Workmen's Compensation Act mandates the deposit of the compensation amount for an appeal by an employer, but does not extend this requirement to interest or penalty. This distinction is crucial in determining the maintainability of the appeal.

Final Decision: The court overruled the preliminary objection regarding the maintainability of the appeal and directed that the appeal be considered on its merits.

JUDGMENT :

Rajesh Sekhri, J.

1. This case pertains to the ordeal of a poor labourer clamoring for justice since 1998 i.e. for the last about 24 years and the present appeal is pending in this Court for the last more than 12 years.

2. This appeal has been directed against an award dated 28.06.2010 passed by the Commissioner under Workmen's Compensation (Assistant Labour Commissioner) Doda in File No. 54/I, vide which the appellant has been held liable to pay compensation of Rs. 1,32,602/- with interest @ 12 % per annum from the date of accident within 30 days from the date of the award, failing which, the amount has been ordered to be recovered as per Section 31 of the Workmen's Compensation Act.

3. Before a closure look at the grounds urged in the memoranda of appeal, it shall be apt to have an overview of the background facts as emerge from the record giving rise to the appeal on hand.

4. It appears that the respondent met with an accident on 06.07.1998 and received personal injuries while in the employment of the appellant at Pathroo Work in Compartment No. 7, Point No. 2. The respondent was admitted in District Hospital, Doda and is stated to have sustained left knee joint dislocation, cut injuries with multiple body injuries resulting in his permanent disablement. The respondent preferred a claim petition before the Commissioner under Workmen's Compensation Act (Assistant Labour Commissioner) Doda, (for short "ALC"). However, his claim came to be rejected by the ALC vide order dated 29.05.2002, holding that he was not entitled to any compensation as he failed to prove that he met with an accident while under the employment of the appellant.

5. The respondent preferred an appeal against the said rejection of his claim, vide CIMA No. 143/2007 and this Court vide order dated 12.10.2006, holding that ALC Doda returned a perverse finding as he failed to appreciate the evidence in a proper manner and caused substantial miscarriage of justice, set aside the said order of ALC Doda and matter was remanded back for consideration afresh in accordance with law.

6. It is pertinent to mention that this Court while allowing the appeal of the respondent had observed that "the evidence produced by the applicant before the Commissioner, therefore, establishes that the appellant (applicant) was working in the compartment which belongs to the respondent, while working he met with an accident in which he got seriously injured and that has happened while he was in the employment of the respondent". Since the factum of the respondent having served under the employment of the appellant and the accident had already been decided by this Court and the said finding of this Court having not been assailed by the appellant had attained finality, learned ALC Doda, vide impugned judgment held the respondent entitled to the compensation along with the interest aforesaid.

7. The appellant has questioned the impugned award inter-alia on the grounds that learned ALC Doda has overlooked the provisions of Workmen's Compensation Act and the rules framed thereunder and has passed the impugned award in violation of the principles of Sections 4, 5 & 10 of the Act. According to the appellant, no notice of alleged accident was ever served by the respondent upon it and the impugned award is silent as to the criteria adopted by the authority below for determining the wages of the respondent. It is further submission of the appellant that since the J&K State Forest Corporation, being a necessary party, was not impleaded as a party in the proceedings before the ALC, therefore, appellant could not be fastened with any liability.

8. Mr. M.P. Gupta, learned counsel appearing for the respondent had raised a preliminary objection regarding maintainability of the present appeal, in terms of Section 30 of the Workmen's Compensation Act, that no appeal by an employer under Clause (a) would be preferred unless certificate of the Commissioner is filed along with the appeal to the effect th

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