Registration of agreement under Sec.12, Industrial Disputes Act is not proper compliance of Sec.29.

JUDGMENT: This appeal is directed against the award of the Deputy Commissioner for Workmen’s Compensation, Madurai, in W.C.No.267 of 1992. The employer, the management of the Transport Corporation is the appellant in the above appeal.

2. The claim petition was filed by the respondent herein, who was working as a Junior Tradesman in the Dindigul Unit of the opposite party. On 9.1.1992, a vehicle bearing registration No.TN57/0164 had to be repaired. The claimant was doing checking work which was undertaken for repairing the vehicle. While he was executing his work by keeping the bonnet of the vehicle, the driver of the vehicle appears to have started the engine. As a result of the same, the bonnet fell down on the hand of the applicant. He was taken to Dindigul Government Hospital where he was given treatment. The upper flange of his Index finger was removed as a result of the accident resulting in 8 per cent permanent disability. The claimant was drawing a salary of Rs.1502.40 per month and he was aged 31 years. Therefore, he was entitled to a sum of Rs.8,238 towards compensation.

3. In the counter filed by the management, it was contended that though the accident was true, as per the existing settlement, the applicant had been paid Rs.9,889.30 by having treated his period of absence from duty owing to the accident from 10.1.1992 to 28.4.1992 as injury leave. The claimant having availed the said benefits as per the settlement had however, chosen to prefer the instant application. The applicant having received what he was entitled to as per the settlement, he was not entitled to claim any further amount. The applicant is even now working in the same capacity without reducing his wages. There was no permanent disability.

4. On a consideration of the said contentions, the Deputy Commissioner held that the amount received by the claimant was as per the terms of the agreement between the management and the same cannot be deducted or treated as in lieu of the amounts payable under the Workmen’s Compensation Act, with the result, the claim petition was allowed and hence the present appeal.

5. The only question which arises for consideration is as to whether the amount paid to the worker could be deducted or construed to be in lieu of the compensation payable under the Workmen’s Compensation Act (hereinafter called “the Act”).

6. Mr.Jayaraman, learned counsel appearing for the management/appellant refers to the provisions under Secs.4(2), 28 and 29 of the Act, to contend that such agreements were always permissible and due credit should be given to the amounts paid under such agreement.

7. Sec.4 of the Act deals with the amount of compensation to be paid under the Act. Under the proviso to Sec.4(2) of the Act, it is stated that there shall be deducted from any lump-sum of half monthly payments to which the workman is entitled the amount or any payment of allowance which the workman had received from the employer by way of compensation during the period of disablement. Under Sec.28 of the Act, where any amount of lump sum payable as compensation has been settled by agreement whether by way of redemption of a half-monthly payment or otherwise or any compensation has been settled as being payable to the person under a legal disability, a memorandum thereof shall be sent by the employer to the Commissioner. On the basis of the above two provisions, learned counsel contends that any agreement between the management and the workman for payment of compensation, would be deductible from the amounts payable towards compensation under the Workmen’s Compensation Act.

8. Learned counsel for the appellant also relies on the judgment of a Division Bench in Employees State Insurance Corporation v. E.I.D. Parry (India) Ltd., (1984)1 L.L.N. 159. That was a case in which the incentive earnings and ad hoc allowance payable under a settlement between the parties under Sec.18(1) of the Industrial Disputes Act were considered and as to whether the said amounts cou

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