Summary
The Court reversed reduction of compensation for a truck helper’s death. His employer’s undiscredited admission proved the modest monthly salary despite absence of wage receipts, which informal workers could not reasonably be expected to possess. A separate food-expense payment was excluded from wages. Compensation was fixed at Rs 2,62,164 with 12% interest from the accident, giving credit for earlier payments. The Court criticised the insurer’s prolonged litigation over the modest claim and awarded the bereaved parents Rs 1 lakh in costs.
Issues
- Whether the High Court could substitute minimum wages despite the employer’s undiscredited admission of actual salary.
- Whether food expenses formed part of wages and interest ran from the award or the accident.
Provisions considered
- Section 2(1)(m), Workmen’s Compensation Act, 1923The separately paid food expense was treated on these facts as an employment-related special expense excluded from wages. (¶ 9)
- Section 4A, Workmen’s Compensation Act, 1923The Court rejected postponement of interest until adjudication and directed 12% interest from the accident. (¶¶ 6, 9-10)
Held
- The employer’s written statement and affidavit admitted monthly wages of Rs 2,400 and were not discredited. The informal nature of the helper’s employment explained the absence of wage receipts. There was no basis to substitute minimum wages for this reasonable, proved salary. (¶ 8)
- The additional Rs 25 paid for food was treated as reimbursement of special expenses arising from the employment and excluded under the statutory definition. Compensation was therefore calculated using Rs 2,400 monthly wages, yielding Rs 2,62,164. (¶ 9)
- Compensation liability arose on the employment accident rather than on adjudication. The insurer was directed to pay interest at 12% from the accident until realisation, replacing the High Court’s 8% from the award. (¶¶ 6, 9)
- Earlier compensation payments were to receive credit, and the outstanding balance was payable within one month under the Commissioner’s personal supervision. The parents were also awarded Rs 1 lakh in litigation costs in light of the prolonged proceedings over this modest death claim. (¶¶ 7, 9-10)
Result
Appeals allowed; High Court orders set aside. Insurer directed to pay Rs 2,62,164 with 12% interest from the accident until realisation, less payments already made, within one month; Rs 1 lakh costs awarded to the appellants.