“Supreme Court Sets Aside High Court’s Decision, Restores Commissioner’s Order in Workmen Compensation Case: ‘A Possible View’”

07 May 2024 8:19 AM

By: Admin

On September 4, 2023 — In a landmark judgement, the Supreme Court of India has set aside the Gujarat High Court’s decision that had nullified the Commissioner’s award of compensation to the legal representatives of a deceased employee. The apex court termed the Commissioner’s conclusions as “a possible view,” thereby negating any perversity in the findings.

The bench, comprising Justice Abhay S. Oka and Justice Sanjay Karol, delivered the verdict on September 4, 2023. The case revolved around the Workmen Compensation Act, 1923, and the appeal was filed by the mother and wife of the deceased employee, Ramakant Yadav.

The Supreme Court observed that the High Court failed to frame any “substantial question of law,” as required by Section 30 of the Workmen Compensation Act, 1923. “The act governing the present dispute has been amended, by which the word ‘workmen’ has been substituted by ‘employees’,” the bench noted.

The Court also emphasized that the Workmen Compensation Act is a social welfare legislation and should be given a beneficial construction. “It is well-established that the Act is a social welfare legislation and, therefore, it must be given a beneficial construction,” the judgement read.

The Commissioner had originally awarded ₹3,94,120 as compensation, 9% interest, and a 50% penalty amounting to ₹1,97,060 against the employer. The High Court had set aside this order, leading to the appeal in the Supreme Court.

As a result of the Supreme Court’s decision, the Commissioner’s order has been restored, and the amount will become payable to the claimants forthwith. Both parties were directed to bear their own costs.

Date of Decision: 04 September 2023

FULMATI DHRAMDEV YADAV & ANR. vs NEW INDIA ASSURANCE CO. LTD. & ANR.