IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
R.M. Selvam - Appellant
Vs.
D. Murali & Another - Respondent
CMA No. 1971 of 2016
Decided On : 27-01-2021
Workmen Compensation Act,1923 - Section 30 - Employees Compensation Act, 1923 - Section 4(1)(b), A, A(3)(a) - Labour - Fixing Monthly Income - Minimum Wages - Whether Deputy Commissioner of Labour is correct in fixing monthly income of claimant lesser than that of minimum wages fixed by Central Government in its Notification stating that minimum wages would be a sum of Rs.8,000/- per month – Held, In view of fact that monthly income of claimant in present Civil Miscellaneous Appeal has been enhanced to Rs.8,000/-, total compensation payable to appellant is a sum of Rs.8,57,495/- along with interest at rate of 12% per annum from date of expiry of 30 days from date of accident - Date of accident and interest is to be calculated - Thus, liability is now fixed on second respondent-Insurance Company - Second respondent-Insurance Company is directed to deposit modified Award amount with accrued interest, within a period of twelve weeks from date of receipt of a copy of this judgment and on such deposit, being made, appellant-claimant is permitted to withdraw same by filing an appropriate application and payments are to be made through RTGS - Appeal allowed.
JUDGMENT :
Prayer: Civil Miscellaneous Appeal is preferred under Section 30 of the Workmen Compensation Act, against the Award dated 21.09.2015 made in WC No.55 of 2014 on the file of the Deputy Commissioner of Labour-II, Chennai.
The Award dated 21.09.2015 passed by the Deputy Commissioner of Labour-II, Chennai in WC No.55 of 2014, is under challenge in the present Civil Miscellaneous Appeal.
2. The substantial question of law raised by the appellant is that whether the Deputy Commissioner of Labour is correct in fixing the monthly income of the claimant lesser than that of the minimum wages fixed by the Central Government in its Notification dated 31.05.2010, stating that the minimum wages would be a sum of Rs.8,000/- per month. Further, it is contended that interest is to be granted from the date of accident.
3. The accident occurred on 10.11.2014. There is no dispute between the parties regarding the occurrence and the claimant sustained injuries.
4. The factum regarding the accident as well as the liability are established through documents and evidences. However, there is no sufficient evidence to establish the income of the claimant and in the absence of any acceptable evidence, the Deputy Commissioner of Labour fixed the monthly income of the claimant as Rs.7,699/-.
5. It is not in dispute that the Central Government by invoking the powers under Section 4(1)(b) of the Employees Compensation Act, enhanced the minimum wages from Rs.4,000/- to Rs.8,000/- with effect from 18.01.2010. Thus, the minimum wages of Rs.8,000/- is to be fixed as monthly income for the purpose of calculating the compensation. Accordingly, this Court is inclined to enhance the monthly income of the claimant as Rs.8,000/-.
6. With reference to the interest, it is to be paid from the date of accident instead of the expiry of 30 days from the date of passing of the Award. In this regard, it is relevant to consider the scope of Section 4-A of the Employees Compensation Act, which enumerates that compensation is to be paid when due and penalty for default. The Section stipulates that the compensation under Section 4 shall be paid as soon as it falls due. Therefore, it is unambiguous that the compensation under Section 4 is to be paid from the date on which the claimant is entitled. For this purpose, the cause of action would be relevant and the date of cause would be the date of due. Therefore, the date of passing of the Award may not be considered as the date of “due” and the date of cause must be the date of accident and therefore, the intention and the spirit of the provisions under Section 4-A of the Employees Compensation Act, is to grant compensation from the date of due and the due falls on the date of accident, as the cause arose on the date of occurrence. Thus, the compensation is to be paid from the date of due. Section 4-A sub-clause (3) enumerates that where any employer is in default in paying the compensation due under this Act, one month from the date it fell due, the Commissioner shall direct the employer to pay simple interest thereon at the rate of 12% per annum. Thus, it is clear that the compensation is to be paid as soon as it falls due and the interest is to be calculated if the compensation is not paid within the period of 30 days from its due. Thus, the interest is to be calculated from the date of expiry of 30 days from the date of accident. Therefore, it is not as if the interest is to be calculated after the expiry of 30 days from the date of passing of the Award by the Deputy Commissioner of Labour.
7. The Award may be passed by the Deputy Commissioner of Labour without reference to the maximum period of disposal. For example, one Deputy Commissioner of Labour may pass an award, within three months and another authority, within six months or one year, because of the delay in disposing of the claim petitions, the claimant should not made to suffer interest as contemplated under Section 4-A of the Employees Compensation Act. Thus, the
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.