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Prison responsibility to pay compensation on demise of employee arises straight away after loss of life: SC

The authorized responsibility to pay compensation on the section of the employer would arise straight away on the demise of a workman and the curiosity would even be levied from the date of loss of life and no longer from the date of the say passed by the Commissioner, the Supreme Court docket acknowledged on Friday.

In the verdict, the apex court docket handled the provisions of the Employee’s Compensation Act, 1923 while coming to the rescue of a family whose bread-earner had died of a snake chunk in 2009 while cutting sugarcane at a field in Solapur district of Maharashtra.

A bench of justices M R Shah and B V Nagarathna termed as “unsustainable” the Bombay High Court docket’s say.

The Aurangabad bench of the high court docket had upheld the award of Rs 3.06 lakh to the family of the workers.

Nonetheless, the high court docket modified the aspect of the Commissioner’s say with regard to curiosity and acknowledged easy curiosity on the price of 12 per cent will be charged after one month from the date of compensation say and no longer from the date of demise.

Writing the judgement, Justice Shah handled provisions of the Employee’s Compensation Act and acknowledged the compensation must be paid as rapidly because it falls due.

“Therefore, on the demise of the employee/deceased straight away, the amount of compensation would per chance even be acknowledged to be falling due. Therefore, the authorized responsibility to pay the compensation would arise straight away on the demise of the deceased,” it acknowledged.

“The authorized responsibility to pay the compensation would arise from the date on which the deceased died for which he’s entitled to the compensation and attributable to this truth, the authorized responsibility to pay the curiosity on the amount of arrears/compensation shall be from the date of accident and no longer from the date of the say passed by the Commissioner,” it acknowledged.

As per the case information, a workman had died of snakebite in the sugarcane field on November 29, 2009, and as neither the sugar manufacturing facility nor the contractor paid the compensation, the relatives moved a declare petition earlier than the Commissioner Workmen’s Compensation at Beed and claimed Rs 5 lakh.

By say in 2017, the Commissioner allowed the plea and requested the Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Ltd, and others to pay the compensation of Rs 3.06 lakh along with easy curiosity on the price of 12 per cent from the date of the accident.

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