Married Daughter Cannot Continue Pending Compensation Claim Under Employees Compensation Act: Chhattisgarh High Court

The Chhattisgarh High Court has delivered a significant ruling on the scope of "dependant" under the Employees' Compensation Act, 1923, holding that a married daughter cannot be substituted in a pending compensation claim filed by her deceased mother. Justice Naresh Kumar Chandravanshi quashed the Labour Court's award of ₹6,12,360 with interest, observing that the cause of action does not survive to a person who is not a statutory dependant.

A Fatal Accident and a Legal Wrangle

The case originates from a tragic incident on April 26, 2015, when Padum Bahadur Soni, an employee of M/s Suraj Pulses Industries, was fatally crushed when a factory boundary wall collapsed on him during work. His widow, Suraji Bai Soni, filed a claim under Section 22 of the Employees' Compensation Act. While the proceedings were pending, Suraji Bai died on May 10, 2021. Her married daughter, Smt. Nanda Soni, then moved for substitution, which the Labour Court allowed despite the employer's objection. The Labour Court later awarded compensation of ₹6,12,360 with 10% interest from the date of application.

Both parties appealed: the claimant sought enhancement of compensation and penalty, while the employer challenged the maintainability of the claim itself.

The Core Dispute: Who is a 'Dependant'?

The employer argued that Smt. Nanda Soni, being a married daughter, does not fall within the definition of " dependant " under Section 2(1)(d) of the Act. The provision explicitly includes only an " unmarried legitimate or adopted daughter " as a dependant , while a married daughter can claim only if she is a minor or widowed minor . The employer relied on the Division Bench decision in Amarsai Amar Singh Netam v. M/s N.C. Nehar & Others (2011 SCC OnLine Chh 183) and a Full Bench of the Madras High Court to contend that the substitution was void.

On the other hand, the claimant argued that since the original claim was filed by her mother, and the Labour Court's substitution order had attained finality, the employer could not now object. She also sought interest at 12% from the date of accident and penalty, citing the Supreme Court's rulings in Shobha v. The Chairman and Ajay Kumar Das v. Divisional Manager .

Statutory Definition and Legal Precedent

Examining Section 2(1)(d), Justice Chandravanshi noted: "A married daughter is not included as a ' dependant ' relative under Section 2(1)(d) of the Act 1923, which explicitly includes only an 'unmarried daughter'." The court distinguished between a case where an award had already been passed (forming part of the estate) and a pending claim. Relying on the Division Bench's reasoning in Amarsai Amar Singh Netam , the court held that since the original claimant died before any award, the right to sue was personal to her and did not survive to a non-dependant.

"Had an award been passed in favour of Suraji Bai Soni during her lifetime, the compensation amount would have formed part of her estate , and the Appellant could have claimed the same in the capacity of a legal representative . However, since the Original Claimant died during the pendency of the claim proceedings prior to the passing of any award, the cause of action did not survive to the Appellant, who is not a ' dependant ' under Section 2(1)(d) of the Act of 1923 ," the court observed.

Interest and Penalty Issues Rendered Academic

The claimant had also argued that the Labour Court erred in awarding only 10% interest from the date of application instead of the mandatory 12% from the date of accident, and in not imposing penalty. The court acknowledged that under Section 4A(3) and the Supreme Court's decisions, interest is payable from the date of accident. However, since the entire award was quashed on the threshold question of dependency, the court held that these issues had become purely academic and did not require adjudication.

Final Verdict: Employer's Appeal Allowed

The High Court allowed the employer's appeal (MAC No. 1494 of 2022), quashing and setting aside the Labour Court's award dated September 13, 2022. The claimant's appeal (MAC No. 1311 of 2022) was dismissed. The court directed that any compensation amount deposited by the employer with the Labour Court be refunded to the employer.

The judgment reinforces the strict statutory framework of the Employees' Compensation Act, emphasizing that only persons specifically enumerated as "dependants" can prosecute or continue a claim. Married daughters, unless they fall within the narrow exceptions, cannot step into the shoes of a deceased original claimant.