Contractor entitled to refund of deposited compensation upon corporation's failure to prove contract, interest to claimants.

ORDER

This Civil Miscellaneous Petition has been filed seeking a direction to the Deputy Commissioner of Labour, Coimbatore, to refund the deposited amount of Rs.11,68,484/- (Rupees Eleven Lakhs Sixty Eight Thousand Four Hundred and Eighty Four) along with its interest till date which is lying in an account to the credit of E.C.No.15 of 2014 to the petitioner.

2. Heard the learned counsels appearing on either side.

3. The petitioner/Contractor and the first respondent Corporation herein are the appellant and fourth respondent in CMA No.3273 of 2019. Aggrieved by the award passed by the Deputy Commissioner of Labour, Coimbatore in E.C No.15 of 2014, the Contractor has filed an appeal before this Court in CMA.No.3273 of 2019. The contractor further claimed that he had already deposited the amount before the Labour Court whereas the first respondent Corporation has not taken any steps to pay the compensation amount to him. This Court, by order dated 17.11.2025, allowed the appeal on the ground that the first respondent Corporation had not produced any documentary evidence regarding the contract entered into between the first respondent Corporation and the Contractor/appellant therein. Subsequently, the review petition has been filed by the Coimbatore Corporation, however, the same was dismissed on 06.02.2026 by recording the statement of the learned Advocate General to the effect that the learned Additional Advocate General had produced a Demand Draft bearing No.447297 dated 05.02.2026, drawn on Indian Bank, Coimbatore Municipal Corporation Office Branch, for a sum of Rs.11,68,484/- in favour of the Registrar General, Madras High Court along with a letter of the Assistant Commissioner, Coimbatore Municipal Corporation, dated 05.02.2026 and had issued a direction to the Registrar General of this Court to deposit the said Demand Draft bearing No.447297 dated 05.02.2026 drawn on Indian Bank, Coimbatore Municipal Corporation Office Branch, for a sum of Rs.11,68,484/- in an interest-bearing deposit in any one of the Nationalised Banks and also directed to send a communication to the District Legal Services Authority, Coimbatore, enabling it to trace the claimants and disburse the said amount to them and to file a report before this Court on 27.02.2026 and thus, posted the matter for reporting compliance.

4. Today, the District Legal Services Authority, Coimbatore has filed a report dated 15.04.2026 identifying the claimants along with the legal heir certificate. Pursuant to the direction of this Court, the Registrar General of this Court has deposited the said Demand Draft bearing No.447297 dated 05.02.2026 drawn on Indian Bank, Coimbatore Municipal Corporation Office Branch, for a sum of Rs.11,68,484/- in an interest bearing deposit in the Indian Bank, Madras High Court Branch for a period of 444 days. In view of the same, the District Legal Services Authority, Coimbatore is directed to take steps to transfer the said deposited amount by the Registrar General from the Indian Bank, Madras High Court Branch to the name of the claimants, within a period of two weeks from the date of receipt of a copy of this order. Upon any steps taken by the District Legal Services Authority, Coimbatore, in this regard, the Manager, Indian Bank, Madras High Court Branch is directed to transfer the amount as per the direction of this Court to the District Legal Services Authority to the claimants.

5. Pursuant to the order of the Labour Court, Coimbatore, the Contractor/petitioner herein had deposited the compensation amount along with interest before the Labour Court in E.C.No.15 of 2014, however, the same was allowed by fixing the liability as against the first respondent Corporation,