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2025 Supreme(All) 2198

IN THE HIGH COURT OF ALLAHABAD 
PANKAJ BHATIA, J. 
Uttar Pradesh Power Corporation Ltd. Thru. Chairman/M.D. Andan – Appellant 
Versus
Sunita Verma And Ors. – Respondent 
MATTERS UNDER ARTICLE 227 No. - 9547 of 2019 
Decided on : 14-05-2025

Advocates:
Advocate Appeared:
For the Appellant : Vashu Deo Mishra, Abhinav Singh
For the Respondent: C.S.C.,Madhulika Yadav

The court affirmed the necessity of just compensation for the death of a contractual worker, emphasizing adherence to mandatory conciliation procedures and established compensation principles.

Headnote:(A) The Legal Services Authorities Act, 1987 - Section 22-C - Compensation for death of contractual worker - Permanent Lok Adalat awarded Rs.13,15,000/- for death of employee while on duty - Court emphasized the duty to ensure just and reasonable compensation as per Supreme Court precedents. (Paras 1, 3, 11, 22)

(B) Public Utility Services - Conduct of public utility service in litigation - Court criticized the approach of the petitioners, highlighting the need for accountability and adherence to public welfare mandates. (Paras 2, 12)

(C) Compensation Calculation - Court upheld the Permanent Lok Adalat's methodology for calculating compensation, including loss of consortium and other conventional heads, ensuring adherence to established legal principles. (Paras 20, 21)

Facts of the case:
The claimant's husband, a contractual employee of the corporation, died while repairing a transformer. The respondents claimed compensation for his death, which the Permanent Lok Adalat awarded after determining dependency and applying the multiplier method.

Findings of Court:
The compensation awarded was upheld at Rs.23,78,000/- with interest at 9% per annum, emphasizing the importance of just compensation for the bereaved family.

Issues: The main issues included the legality of the Permanent Lok Adalat's award and the adequacy of the compensation awarded.

Ratio Decidendi: The court ruled that the Permanent Lok Adalat must follow mandatory conciliation procedures before adjudicating disputes, and that just compensation is a fundamental principle in such cases.

Result: Petition dismissed; total compensation of Rs.23,78,000/- awarded with interest.

Table of Content
1. parties presented their arguments before the court. (Para 1)
2. court expresses concern over public utility service's approach. (Para 2)
3. factual background of the case and compensation awarded. (Para 3 , 4 , 5 , 6 , 7)
4. arguments regarding the legality of the compensation awarded. (Para 8 , 9 , 10 , 11)
5. court critiques petitioners' unreasonable behavior. (Para 12 , 13 , 14)
6. court's reasoning on just compensation and its calculation. (Para 15 , 16 , 17 , 18 , 19)
7. determination of total compensation to be awarded. (Para 20 , 21)
8. final judgment and directions for payment. (Para 22 , 23 , 24)

Hon'ble Pankaj Bhatia,J.

1. Heard Shri Abhinav Singh, learned counsel for the petitioners and Ms. Madhulika Yadav, learned counsel for the respondents.

2. This is a very sad case in which a public utility service has approached this Court and is arguing in a manner which does not bear well for the public welfare for which the petitioner was established.

3. Present petition has been filed challenging the award dated 11.10.2018 whereby the Permanent Lok Adalat has awarded a sum of Rs.13,15,000/-.

4. The respondents herein who are the claimants had moved an application alleging that the husband of respondent no.1 was working as a contractual employee with the corporation (petitioners herein) and died while repairing a transformer. It was stated that the husband was working at the time of his death and was aged about 35 years and was drawing a remuneration of Rs.7,000/- per month, thus, it was claimed that the respondents/corporation should be directed to pay the amount of compensation. It was also stated that an amount of Rs.1,00,000/-has been paid on account of death of the husband of claimant.

5. The respondents/corporation filed their written statement which is on record wherein they admitted that the husband of the claimant was working as a contractual worker with the corporation. It was also admitted that he died on account of an accident while at work. It was also admitted that the respondents herein are the claimants, however, the amount claimed was denied on the ground that an interim compensation of Rs.1,00,000/- has been paid through cheque.

6. With regard to jurisdiction, no reply was given as is evident from Para 6 of the written statement. It was also stated in Para 8 that all the claims made were not legally tenable.

7. The Permanent Lok Adalat recorded that after filing the written statement, the respondents/corporation did not appear. It was further recorded that from the order dated 26.04.2018 passed by the Permanent Lok Adalat, it was clear that the respondents had failed to appear for conciliation and no reasons were specified for non-appearance and thereafter, it was recorded that on 06.05.2018, counsel for the respondents appeared in whose presence the points of determination were framed and thereafter on six dates, no one appeared for the respondents. Thereafter, the Permanent Lok Adalat recorded the judgment of the Supreme Court in the case of State of Haryana v. Jasbir Kaur; (2003) 7 SCC 484 wherein it was held that it is the duty of the Court and the Tribunal to award ‘just and reasonable’ compensation. Thereafter, the Permanent Lok Adalat admitting all the facts, which were not denied, to be correct proceeded to calculate the compensation taking into consideration the amount of monthly remuneration paid to the husband of the claimant at the rate of Rs.7,000/- per month total Rs.84,000/- per annum out of which 1/3rd was deducted on account of personal expenses and the dependency was assessed at Rs.56,000/- i.e. 2/3rd of the amount of remuneration paid to the husband of the claimant. As the age of the deceased at the time of death was 35 years, the compensation was awarded by multiplying Rs.56,000/- (assessed as dependency) with 25 i.e. the age of retirement. In addition thereto, the Permanent Lok Adalat awarded an amount of Rs.5,000/- towards loss of companionship, another Rs.5,000/- towards the fune

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