Bombay High Court Allows Writ Petition for Release of Compensation Amount Deposited Under Workmen's Compensation Act, 1923 — Directs Payment to Legal Heirs Without Requirement of Succession Certificate or No-Objection Certificate from Other Heirs. The Court held that the Commissioner for Workmen's Compensation cannot insist on a succession certificate or no-objection certificate from other legal heirs before disbursing compensation to the dependents of the deceased workman under Section 8 of the Workmen's Compensation Act, 1923.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, legal representatives of deceased Rajendra Nivrutti Jadhav, filed a Claim Petition under the Workmen's Compensation Act, 1923 before the Commissioner for Workmen's Compensation at Pune. The Commissioner, by judgment and order dated 30th November 2010, ordered compensation to be paid to the petitioners. The insurer deposited the compensation amount. However, the Commissioner refused to release the amount to the petitioners, insisting on a succession certificate or no-objection certificate from other legal heirs. The petitioners filed a Writ Petition in the Bombay High Court challenging this insistence. The High Court held that the Commissioner cannot insist on a succession certificate or no-objection certificate from other legal heirs before disbursing compensation to the dependents of the deceased workman. The Court observed that the Workmen's Compensation Act is a beneficial legislation intended to provide speedy compensation to the dependents of a deceased workman. The Commissioner must determine the entitlement of the claimants under the Act and disburse the amount accordingly. The Court directed the Commissioner to release the compensation amount to the petitioners within four weeks from the date of the order, without insisting on a succession certificate or no-objection certificate from other heirs. The writ petition was allowed.

Headnote

A) Workmen's Compensation - Payment of Compensation to Dependents - Section 8, Workmen's Compensation Act, 1923 - The Commissioner cannot insist on a succession certificate or no-objection certificate from other legal heirs before disbursing compensation to the dependents of the deceased workman. The Commissioner must determine the entitlement of the claimants under the Act and disburse the amount accordingly. (Paras 1-10)

B) Workmen's Compensation - Deposit of Compensation - Section 8, Workmen's Compensation Act, 1923 - Once compensation is deposited by the insurer, the Commissioner is duty-bound to disburse it to the persons entitled under the Act. The requirement of a succession certificate or no-objection certificate from other heirs is not mandated by the Act and would defeat the purpose of speedy compensation. (Paras 5-8)

C) Workmen's Compensation - Legal Representatives - Section 8, Workmen's Compensation Act, 1923 - The petitioners, being the widow, children, and parents of the deceased workman, are the dependents entitled to compensation under the Act. The Commissioner's insistence on a succession certificate or no-objection certificate from other heirs is unwarranted and contrary to the scheme of the Act. (Paras 2-4)

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Issue of Consideration

Whether the Commissioner for Workmen's Compensation can insist on production of a succession certificate or no-objection certificate from other legal heirs before releasing the compensation amount deposited under the Workmen's Compensation Act, 1923 to the dependents of the deceased workman.

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Final Decision

The High Court allowed the writ petition and directed the Commissioner for Workmen's Compensation at Pune to release the compensation amount deposited by the insurer to the petitioners within four weeks from the date of the order, without insisting on a succession certificate or no-objection certificate from other legal heirs.

Law Points

  • Workmen's Compensation Act
  • 1923
  • Section 8
  • Section 4
  • Payment of compensation to dependents
  • No requirement of succession certificate
  • No requirement of no-objection certificate from other heirs
  • Commissioner's duty to disburse compensation to entitled dependents
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Case Details

2013 LawText (BOM) (10) 182

WRIT PETITION NO.80 OF 2013

2013-10-22

A. S. Oka, Revati Mohite Dere

2013:BHC-AS:26463-DB

Mr. A.M. Gokhale for the petitioners, Mr. S.K. Shinde, G.P. for respondent nos.1 and 4, Mr. A.D. Kango, AGP for respondent no.2, Mr. Vinod Joshi for respondent no.3

Meera Rajendra Jadhav & Ors.

The State of Maharashtra & Ors.

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Nature of Litigation

Writ Petition challenging the insistence of the Commissioner for Workmen's Compensation on production of succession certificate or no-objection certificate from other legal heirs before releasing compensation deposited under the Workmen's Compensation Act, 1923.

Remedy Sought

The petitioners sought a direction to the Commissioner to release the compensation amount deposited by the insurer without insisting on a succession certificate or no-objection certificate from other legal heirs.

Filing Reason

The Commissioner refused to release the compensation amount to the petitioners, who are the legal representatives of the deceased workman, on the ground that they had not produced a succession certificate or no-objection certificate from other legal heirs.

Previous Decisions

The Commissioner for Workmen's Compensation at Pune, by judgment and order dated 30th November 2010, ordered compensation to be paid to the petitioners. The insurer deposited the compensation amount, but the Commissioner did not release it.

Issues

Whether the Commissioner for Workmen's Compensation can insist on a succession certificate or no-objection certificate from other legal heirs before releasing compensation to the dependents of the deceased workman under the Workmen's Compensation Act, 1923.

Submissions/Arguments

The petitioners argued that the Workmen's Compensation Act is a beneficial legislation and the Commissioner cannot insist on a succession certificate or no-objection certificate from other heirs, as the Act itself provides for determination of dependents and payment of compensation. The respondents did not oppose the petition and submitted that the Commissioner's insistence was not warranted.

Ratio Decidendi

The Commissioner for Workmen's Compensation cannot insist on a succession certificate or no-objection certificate from other legal heirs before disbursing compensation to the dependents of the deceased workman under the Workmen's Compensation Act, 1923. The Act is a beneficial legislation intended to provide speedy compensation, and the Commissioner must determine the entitlement of the claimants under the Act and disburse the amount accordingly.

Judgment Excerpts

The Commissioner cannot insist on a succession certificate or no-objection certificate from other legal heirs before disbursing compensation to the dependents of the deceased workman. The Workmen's Compensation Act is a beneficial legislation intended to provide speedy compensation to the dependents of a deceased workman.

Procedural History

The petitioners filed a Claim Petition under the Workmen's Compensation Act, 1923 before the Commissioner for Workmen's Compensation at Pune. The Commissioner, by judgment and order dated 30th November 2010, ordered compensation to be paid. The insurer deposited the amount, but the Commissioner refused to release it, insisting on a succession certificate or no-objection certificate. The petitioners then filed the present Writ Petition before the Bombay High Court.

Acts & Sections

  • Workmen's Compensation Act, 1923: Section 8, Section 4
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