Case Note & Summary
The appellant, ICICI Lombard General Insurance Co. Ltd., challenged the judgment and order dated 19/11/2021 passed by the Commissioner for Employees Compensation & Judge, Labour Court, Buldana, in a claim application under the Employees Compensation Act, 1923. The claimants, respondent Nos. 1 and 2, are the parents of deceased Anil, who died in an accident on 09/05/2014 while working as a driver for respondent No. 3, the vehicle owner. The vehicle was insured with the appellant. The claimants contended that Anil earned a monthly salary of Rs. 8000/- plus daily bhatta of Rs. 60/- (Rs. 1800/- per month). The Commissioner, based on evidence, found that Anil was employed as a driver and died due to an accident arising out of and in the course of employment. The Commissioner awarded compensation of Rs. 8,22,640/- with interest at 12% per annum from the date of accident. The Insurance Company appealed, raising the substantial question of law whether the Commissioner was justified in regarding the date of adjudication as the relevant date for determining compensation under the EC Act. The court admitted the appeal on this question and heard it by consent. The court noted that the Commissioner had used the date of adjudication (19/11/2021) to determine the relevant factor for calculating compensation, whereas the correct date should be the date of accident (09/05/2014). The court held that the relevant date for determination of compensation under the EC Act is the date of accident, not the date of adjudication. The court set aside the impugned order and remanded the matter to the Commissioner for fresh calculation of compensation based on the date of accident. The court directed the Commissioner to pass a fresh order within three months from the date of receipt of the order. The appeal was allowed accordingly.
Headnote
A) Employees Compensation - Determination of Compensation - Relevant Date - The issue was whether the Commissioner should use the date of accident or date of adjudication for calculating compensation under the Employees Compensation Act, 1923 - The court held that the relevant date for determination of compensation is the date of accident, not the date of adjudication - The Commissioner erred in using the date of adjudication - The matter was remanded for fresh calculation (Paras 2, 7-8)
Issue of Consideration
Whether the Commissioner was justified in regarding the date relevant for the determination of compensation under the Employees Compensation Act, 1923 to be the date of adjudication?
Final Decision
The appeal is allowed. The impugned judgment and order dated 19/11/2021 is set aside. The matter is remanded to the Commissioner for Employees Compensation & Judge, Labour Court, Buldana for fresh calculation of compensation in accordance with law, taking the date of accident as the relevant date. The Commissioner shall pass a fresh order within three months from the date of receipt of the order.
Law Points
- Date of accident is the relevant date for determination of compensation under the Employees Compensation Act
- 1923
- not the date of adjudication
