The Employees’ Compensation Act mandates compensation based on actual wages without ceiling limits imposed by notifications, ensuring dependants receive just compensation according to incurred earnings.

JUDGMENT :

SANJEEB K. PANIGRAHI, J.

1. The present appeal has been filed by the employer (East Coast Railway) assailing the order dated 20.03.2024 passed by the Commissioner for Employees’ Compensation-cum-Joint Labour Commissioner, Headquarters, Bhubaneswar in E.C. Case No. 5 of 2023. By the said order, the Commissioner allowed the claim application filed by the dependants of the deceased employee and awarded compensation under the Employees’ Compensation Act, 1923 on account of his death stated to have occurred due to an accident arising out of and in the course of employment.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case as narrated by the appellants are as follows:

i. The claim proceedings were instituted by the parents/legal dependants of late Sri Nishant Kumar, who, as pleaded, was employed as an Assistant Loco Pilot (Electrical) under the Chief Crew Controller, East Coast Railway, Talcher. It was pleaded that the deceased was on duty in connection with railway operations and that while so discharging his official duty, he suffered a fatal accident.

ii. According to the claim petition, on 05.03.2023, the deceased was booked for duty at about 20:40 hours along with a Loco Pilot (Goods) from Talcher. It was further pleaded that on 06.03.2023, the deceased was found dead after having been run over by a running train bearing No. 20822 (Express) at K.M. 421/1-3 DN between Rajathgarh and Machhpur. The claimants asserted that the said death was the result of an accident arising out of and in the course of his employment with the employer.

iii. The claimants stated that at the time of the incident, the deceased was about 31 years of age and was drawing monthly wages inclusive of allowances. On such basis, the claimants sought compensation under the Employees’ Compensation Act, 1923 and also claimed interest at the statutory rate from the date of accident till payment. The claim petition sought a lump sum amount as compensation, computed by applying the statutory factors under the Act.

iv. The employer contested the claim before the Commissioner. In substance, while not disputing the employment relationship pleaded by the claimants, the employer raised a contention on the mode of computation of wages for the purposes of compensation payable under Section 4 of the Act. The employer asserted that for computation of compensation, the monthly wages were required to be taken at Rs. 15,000/- in view of the Central Government Notification dated 03.01.2020 issued under Section 4(1-B) of the Act. It was further stated that the Railway Board had adopted the said wage figure for the purpose of computation by issuing Railway Board’s RBE No. 64/2021 dated 02.09.2021.

v. On the above premise, the employer deposited a sum of Rs. 15,44,625/- before the Commissioner by way of demand draft on 07.07.2023, stating the same to be the compensation calculated at fifty percent of wages (Rs. 7,500/-) multiplied by the relevant age factor (205.95). It was also stated by the employer that apart from the statutory deposit, the family of the deceased had been paid Rs. 10,000/- towards funeral assistance and a further sum of Rs. 25,00,000/- as an ex-gratia payment under the Railway Board’s policy (referred to as RBE No. 139 of 2016), being immediate assistance to the bereaved family.

vi. The Commissioner proc