Summary
The Supreme Court held that compensation under the 1923 employees’ compensation legislation is governed by the law on the accident date. The 2009 amendment deleting the deemed monthly-wage cap did not apply to earlier accidents merely because adjudication remained pending. Nonetheless, invoking Article 142, the Court preserved the High Court’s enhanced award for this 2008 death, given the long delay, proved wages and absence of a respondents’ appeal.
Issues
- Whether the 2009 amendment deleting the deemed wage cap applied to an accident preceding its commencement.
- Whether the enhanced award should nevertheless be preserved in this appeal by the claimants.
Provisions considered
- Section 4, former Explanation II; Section 4(1B), Employee’s Compensation Act, 1923The former Rs 4,000 deemed wage cap governed the 2008 accident; its deletion and the new notification power did not operate retrospectively. (¶¶ 10, 13, 14, 26, 28, 32, 33)
Held
- Following binding larger-Bench authority, the relevant date for determining compensation is the accident date, when liability arises, rather than the date of adjudication. The contrary earlier approach in Neelakandan had been rejected; reliance on Mubasir Ahmed did not displace the controlling authorities. (¶¶ 17, 18, 21, 22, 24, 32)
- Although beneficial, enhancement imposes a corresponding burden on employers. There was no express or implied legislative intention to apply the 2009 amendment to pre-commencement accidents. The statutory Rs 4,000 deemed cap therefore applied to the January 2008 accident. (¶¶ 25, 26, 27, 28, 32, 33)
- The railway-compensation approach allowing the higher of specified alternatives did not alter the binding position under the 1923 Act. (¶¶ 29, 30, 31, 32)
- The Court nevertheless preserved the enhanced award under Article 142: more than twelve years had elapsed, the employer had proved the wage certificate on remand, and the respondents had not appealed against the enhancement. This case-specific relief did not change the prospective operation of the amendment. (¶¶ 34, 36)
Result
Claimants’ appeal dismissed after clarification of the law. Compensation preserved at Rs 8,86,120 with 12% annual interest from the accident date, payable to appellants 1 and 2 by the respondents jointly and severally within two months of receipt of a certified copy. No order as to costs.