Case Note & Summary
The appeal was filed by the parents of Miss Sujata Siddharth Survase, who died in the Mangalore air crash on 22 May 2010 while working as a crew member for Air India Charters Ltd. The employer deposited Rs.25,63,506/- as compensation under Section 8(1) of the Employees Compensation Act, 1923 before the Commissioner. Earlier, the employer had voluntarily paid Rs.10 lakhs as interim compensation to the appellants. The Commissioner, by order dated 15 April 2013, directed that the interim amount of Rs.10 lakhs be deducted from the deposited amount, leaving a balance of Rs.15,87,655/- payable to the appellants. The appellants challenged this deduction. The High Court examined the provisions of the Act and found no provision authorizing the Commissioner to deduct interim compensation from the amount deposited under Section 8(1). The Court noted that the interim payment was made voluntarily by the employer and was not part of the statutory compensation scheme. The Court held that the Commissioner's direction was without authority of law and set it aside. The appeal was allowed, and the employer was directed to pay the full deposited amount of Rs.25,87,655/- to the appellants without any deduction.
Headnote
A) Employee Compensation - Interim Compensation - Deduction - Section 8(1) and Section 30(1)(c) of Employees Compensation Act, 1923 - The issue was whether the Commissioner could deduct interim compensation voluntarily paid by the employer from the amount deposited under Section 8(1) - The Court held that the Act does not provide for deduction of interim compensation from the deposited amount; the Commissioner's direction was without authority of law - The appeal was allowed and the direction for deduction was set aside (Paras 1-10).
Issue of Consideration
Whether the Commissioner for Employees Compensation was justified in directing deduction of Rs.10 lakhs (interim compensation already paid) from the amount of Rs.25,87,655/- deposited by the employer under Section 8(1) of the Employees Compensation Act, 1923.
Final Decision
The appeal is allowed. The direction of the Commissioner for Employees Compensation dated 15 April 2013 to deduct Rs.10 lakhs from the deposited amount is set aside. The employer is directed to pay the full deposited amount of Rs.25,87,655/- to the appellants without any deduction.
Law Points
- Interim compensation voluntarily paid by employer cannot be deducted from compensation deposited under Section 8(1) of Employees Compensation Act
- 1923
- Section 8(1) of Employees Compensation Act
- Section 30(1)(c) of Employees Compensation Act
Case Details
First Appeal No.1122 of 2013
Mr. Shailesh Naidu with Mr. Amit Survase, Mr. Afroz Shah i/b C.R. Naidu & Co. for the appellant; Mr. Firoz Bharucha and Mr. Siddhant Vakil i/b Mulla & Mulla for the respondent
Siddharth Sambhaji Survase and Mrs. Pushpa Siddharth Survase
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Nature of Litigation
Appeal under Section 30(1)(c) of the Employees Compensation Act, 1923 against the order of the Commissioner for Employees Compensation directing deduction of interim compensation from the deposited amount.
Remedy Sought
Appellants sought setting aside of the Commissioner's order dated 15 April 2013 directing deduction of Rs.10 lakhs interim compensation from the deposited amount of Rs.25,87,655/-.
Filing Reason
The Commissioner directed deduction of interim compensation already paid, which the appellants contended was without authority of law.
Previous Decisions
Commissioner for Employees Compensation passed order dated 15 April 2013 directing deduction of Rs.10 lakhs from the deposited amount.
Issues
Whether the Commissioner for Employees Compensation was justified in directing deduction of Rs.10 lakhs (interim compensation already paid) from the amount deposited under Section 8(1) of the Employees Compensation Act, 1923.
Submissions/Arguments
Appellants argued that the Act does not provide for deduction of interim compensation from the amount deposited under Section 8(1); the interim payment was voluntary and not part of statutory compensation.
Respondent argued that the deduction was justified as the interim compensation was paid towards the same liability.
Ratio Decidendi
The Employees Compensation Act, 1923 does not contain any provision authorizing the Commissioner to deduct interim compensation voluntarily paid by the employer from the amount deposited under Section 8(1). Such deduction is without authority of law.
Judgment Excerpts
The grievance of the appellants is limited against the order dated 15042013 passed by the Commissioner for Employees Compensation, whereby direction was given for deduction of the amount of Rs Ten Lakhs earlier paid as interim compensation from the amount of Rs.25,87,655/ deposited by the Employer...
The Act does not provide for deduction of interim compensation from the amount deposited under Section 8(1).
Procedural History
The Commissioner for Employees Compensation passed an order on 15 April 2013 directing deduction of Rs.10 lakhs interim compensation from the deposited amount. The appellants filed this appeal under Section 30(1)(c) of the Employees Compensation Act, 1923 before the Bombay High Court.
Acts & Sections
- Employees Compensation Act, 1923: Section 8(1), Section 30(1)(c)
