High Court Of Orissa
P. K. MISRA
NEW INDIA ASSURANCE CO.LTD. - Appellant
Versus
KARTIKA JENA - Respondent
M. A. 650 Of 1998
Decided On : 12/23/1999
WORKMEN'S COMPENSATION ACT - SECTION 4(1)(A) - AMENDMENT - APPLICABILITY - RETROSPECTIVITY - INSURANCE COMPANY'S LIABILITY - SCOPE OF APPEAL UNDER SECTION 30 - SECTIONS 147 AND 149 OF THE MOTOR VEHICLES ACT - FUNERAL EXPENSES.
Fact of the Case:
An employee died in a motor accident arising out of and in the course of employment. The Commissioner for Workmen's Compensation awarded compensation to the deceased's father, applying the amended provisions of Section 4(1)(a) of the Workmen's Compensation Act, which increased the compensation amount. The insurance company appealed, arguing that the amended provisions should not be applied retrospectively to accidents that occurred before the amendment.
Finding of the Court:
The court held that the amendment to Section 4(1)(a) was a substantive change and not merely procedural, and therefore could not be applied retrospectively. The court also held that the insurance company could challenge the Commissioner's award on all available grounds in an appeal under Section 30 of the Act, and was not limited to the grounds specified in Sections 147 and 149 of the Motor Vehicles Act.
Issues: 1. Whether the amended provisions of Section 4(1)(a) of the Workmen's Compensation Act could be applied retrospectively to accidents that occurred before the amendment. 2. Whether the insurance company could challenge the Commissioner's award on all available grounds in an appeal under Section 30 of the Act.
Ratio Decidendi: 1. The amendment to Section 4(1)(a) was a substantive change and not merely procedural, as it increased the compensation amount payable to the deceased's dependents. Therefore, it could not be applied retrospectively to accidents that occurred before the amendment. 2. The insurance company could challenge the Commissioner's award on all available grounds in an appeal under Section 30 of the Act, as there was no provision in the Workmen's Compensation Act similar to Section 110-C(2-A) of the Motor Vehicles Act, which limited the grounds of appeal for insurance companies.
Final Decision: The court allowed the appeal in part, reducing the compensation amount to be paid to the deceased's father by applying the pre-amendment provisions of Section 4(1)(a). The court also waived the penalty imposed on the insurance company and deducted the funeral expenses awarded by the Commissioner, as they were introduced by the amendment and could not be applied retrospectively.
P. K. MISRA, J.
( 1 ) THE insurer has filed this appeal under section 30 of the Workmen's Compensation Act (in short, 'theact' ).
( 2 ) CLAIMANT-RESPONDENT No. 1 had filed w. C. Case No. 405-J of 1994 claiming compensation on the ground that his son died in a motor accident arising out of and in course of employment as a coolie in a truck bearing registration No. ORU 9323. The accident had occurred on 18. 7. 1994. Thereafter, the deceased had been shifted to S. C. B. Medical College and Hospital, cuttack, but succumbed to the injuries on 21. 7. 1994. The father of the deceased in his claim application claimed that he was depending upon his son. The owner of the truck while admitting about the engagement of the deceased as a coolie as well as about the accident and the consequential death, claimed that the liability, if any, should be met by the insurance company. The insurer filed written statement generally denying the allegations made in the claim application.
( 3 ) THE Commissioner for Workmen's compensation, Cuttack (in short, 'the Commissioner'), on consideration of the materials on record found that the deceased was a workman under present respondent no. 2 and had died because of the injuries sustained in an accident arising out of and in course of employment. The monthly wages of the deceased were calculated at rs. 1,000 and the age was found to be 18 years. The Commissioner applied the provisions contained in section 4 (1) (a) of the workmen's Compensation Act as amended in the year 1995 and by calculating fifty per cent of the monthly wages as the multiplicand and applying the multiplier of 226. 38 directed that a sum of Rs. 1,13,190 should be paid by the insurance company to claimant-respondent No. 1. He also directed for the payment of Rs. 1,000 as funeral expenses, as envisaged in subsection (4) of section 4 of the Act, as amended in the year 1995. In addition to the aforesaid amount, the Commissioner has imposed a sum of Rs. 500 as cost and fine of Rs. 500 and thus awarded a total sum of Rs. 1,15,190.
( 4 ) IN this appeal, the main contention of the appellant is to the effect that since the accident had occurred on 18. 7. 1994 and the death had occurred on 21. 7. 1994, the commissioner should have applied the provisions of section 4 (1) (a) as existed before amendment by Act 30 of 1995. In other words, it is contended that the amended provision is not applicable to cases where the cause of action arose prior to the amended Act came into force.
( 5 ) THE learned counsel appearing for claimant-respondent No. 1 submitted that the Act being a beneficial legislation, the amended provisions should be applied to all pending cases irrespective of the date of accident and, therefore, the award of the commissioner should not be interfered with. It is also submitted that the insurance company in an appeal under section 30 of the Act is entitled to raise grounds as envisaged in sections 147 and 149 of the motor Vehicles Act and cannot challenge the award on other grounds unless such insurance company had been permitted to contest the case on merit in accordance with the provisions contained in section 170 of the Motor Vehicles Act.
( 6 ) IN view of the latter contention of the counsel for claimant-respondent, before considering the appeal on merit, the scope of an appeal under section 30 of the Act at the instance of the insurance company is to be ascertained. The learned counsel for the claimant-respondent pleaded that the right of an insurance company to avoid the liability flows from the provisions contained in sections 147 and 149 of the Motor vehicles Act. It is submitted that even though there is no specific provision in the workmen's Compensation Act regarding the liability of the insurance company, the principle available under the provisions of sections 147 and 149 of the Motor Vehicles act should be made applicable to all proceedings including the proceedings under the Workmen's Compensation Act. The learned c
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