Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 869 of 2016, Judgment Date: Feb 04, 2016


|   REPORTABLE         |


                         IN THE SUPREME COURT OF INDIA
                          CIVIL APPELLATE JURISDICTION

                         CIVIL APPEAL NO.869 OF 2016
                (Arising out of S.L.P. (C) No. 1903 of 2015)

JAYA BISWAL & ORS.                                            ………APPELLANTS

                                     Vs.

 BRANCH MANAGER, IFFCO TOKIO GENERAL
INSURANCE COMPANY LTD. & ANR.                                ………RESPONDENTS

                                  J U D G M E N T

V. GOPALA GOWDA, J.

Leave granted.
The present appeal arises out of  the  impugned  judgment  and  order  dated
13.08.2014 passed in F.A.O. No. 472 of 2013 by the High Court of  Orissa  at
Cuttack,  wherein  the  learned  single  Judge   reduced   the   amount   of
compensation awarded to the  appellants  by  the  learned  Commissioner  for
Employees’  Compensation  from  Rs.10,75,253/-  to  Rs.6,00,000/-  and  also
waived the award of 50% penalty with interest.

The brief  facts  of  the  case  required  to  appreciate  the  rival  legal
contentions advanced on behalf of the parties are stated here under:
The elder son of appellant Nos. 1 and 2 worked as a truck  driver  with  one
Bikram Keshari Patnaik (respondent no. 2  herein).  On  19.07.2011,  he  met
with an accident while on his way to deliver wheat bags in  the  truck  from
Berhampur, Orissa to Paralakhemundi, Andhra  Pradesh.  He  sustained  severe
injuries on the back of his head and died on the spot. The  cleaner  of  the
truck, who was present  at  the  time  of  the  accident,  gave  information
regarding the accident to the  Mandasa  Police  Station,  Srikakulam,  whose
personnel  reached  the  spot  and  conducted  the  inquest,  prepared   the
panchnama and sent the body of the deceased for  post  mortem.  The  cleaner
also informed the father of the deceased (Appellant No.1 herein),  who  made
arrangements for taking the dead body of his son back to the native  village
for cremation. On 03.11.2011, the appellants, being the father,  mother  and
younger brother of the deceased, filed claim petition W.C. Case  No.  61  of
2011 before the  Court  of  the  Commissioner  for  Workmen’s  Compensation,
Berhampur, Ganjam District.  The  claim  of  the  appellants  was  that  the
deceased was aged around 26 years at the time of death and  had  died  while
he was in and during the course of employment of respondent  no.  2  herein.
They claimed that he was getting monthly  wages  at  Rs.4,000/-  per  month,
daily bhatta (allowance) at Rs.200/- which comes to  Rs.6,000/-  per  month,
along with additional  trip  benefit  amounting  to  Rs.3,000/-,  the  total
amounting to Rs.13,000/- per month. On this basis, they claimed a  lump  sum
of Rs.18,00,000/- as pecuniary damages  towards  loss  of  past  and  future
wages and loss of earning. They claimed  additional  amount  of  Rs.20,000/-
towards funeral expenses, Rs.30,000/- towards mental agony,  physical  shock
and pain, and   Rs.50,000/- towards expectation of  life  and  Rs.1,00,000/-
towards loss of estate, inconvenience and hardships  caused  to  the  family
members of the deceased on account of the death of deceased.

In response, the owner of the truck, respondent no.2 herein filed a  Written
Statement and denied his liability. He claimed that he  was  not  liable  to
compensate the deceased  as  he  had  died  on  the  spot  due  to  his  own
negligence, as he had tried to enter the vehicle while  it  was  in  motion.
Respondent no. 2 also contended that in any case he is  not  liable  to  pay
the amount as claimed  by  the  appellants.  He  submitted  in  the  Written
Statement that he has been paying only Rs. 100/- per day as wages,  and  Rs.
50/- per day as bhatta. Further, he had already given  financial  assistance
to the father of the deceased  for  the  cremation.  The  learned  Employees
Compensation - cum-  Assistant  Labour  Commissioner  considered  the  above
aspect of the matter at length  and  arrived  at  the  conclusion  that  the
deceased was working in the employment of Respondent no.2  at  the  time  of
his death and that he had lost his life in an accident caused during and  in
the course of his employment with Respondent no.2. The learned  Commissioner
relied upon the testimony of the witnesses to construct the following  chain
of events leading up to the accident:
“The deceased was working as a driver in truck No. OR 15J-1047 owned by  the
O.P.I……On 19-07-2011 at about 4.30  A.M.,  the  deceased  received  personal
back head injury near Sandhigam village by vehicular  accident  arising  out
of and in course of his employment as a driver of the truck No. OR  15J-1047
which was loaded with wheat bags. He along with the cleaner  Sarada  Prasana
Patnaik loaded the said wheat bags on 18-07-2011  at  about  11.30  P.M.  at
godown. On the way, they stopped and kept the vehicle and took the rest  and
slept there on 18-07-2011. Another truck bearing No. OR 07B-8791  which  was
also followed with the offending vehicle had also halted and  stopped  there
along with them. They all had taken rest and slept there and  got  up  early
morning at  about  4.30  A.M.  on  19.07.2011  and  started  to  proceed  to
Paralakhemundi for unloading the goods. While to proceed, the  deceased  had
started the vehicle but the vehicle did not start. Hence, the  deceased  and
the cleaner got down from the  vehicle  and  checked  the  battery  box  and
removed the wooden log piece kept for obstructing the  right  wheel  of  the
said truck. After removal of the wooden log piece, the vehicle moved to  run
down. The deceased saw that the vehicle was  moving  ahead,  he  immediately
climbed into the vehicle  through  the  iron  stepping  of  the  truck,  but
unfortunately, he  fell  down  from  the  truck  and  sustained  severe  and
grievous bleeding injuries on the back side of the  head  and  died  at  the
spot. The vehicle proceeded few distance on the public road and capsized  in
the field. Thereafter, he and the cleaner of the vehicle saw  the  condition
of the deceased and had  consulted  with  the  village  Revenue  Officer  of
Sandigam village and told the fact. They immediately reported the matter  to
the police, Mandasa Police Station and informed the same  to  the  O.P.I  as
well as to the father of the deceased.”

Further, Respondent no.2 had also admitted before the  learned  Commissioner
that the death of the deceased had occurred due to an accident  arising  out
of and during the course of  the  employment  for  which  a  compromise  was
sought to be reached by Respondent no.2 with the appellants, to  the  amount
of  Rs.3,50,000/-.  Accordingly,  the  learned  Commissioner  came  to   the
conclusion that the deceased was an ‘employee’ within  the  meaning  of  the
Employee’s Compensation Act, 1923 (hereinafter  referred  to  as  the  “E.C.
Act”) and had died in an accident arising out of and in the  course  of  his
employment under Respondent no.2. The learned Commissioner, relying  on  the
date of birth of the deceased as 01.07.1984, as mentioned  in  the  driver’s
license and Transfer Certificate, came to the conclusion  that  the  age  of
the deceased was 27 years at the time of the accident. On  the  question  of
the monthly wages being earned by the deceased at the  time  of  his  death,
the  learned  Commissioner  concluded  that  the  contentions  advanced   by
Respondent no.2 that he was being paid  wages  of  Rs.  100/-  per  day  and
bhatta of Rs. 50/- per day cannot be believed.  The  vehicle  in  which  the
accident had occurred possessed a National Route Permit,  and  the  deceased
often drove the vehicle to destinations outside the state.  He  was  also  a
highly skilled workman. In  the  light  of  the  said  fact  stated  by  the
appellants, the wages of Rs.4,000/- per month and  bhatta  of  Rs.200/-  per
day and trip charges of Rs.3,000/- per  month  (i.e.Rs.13,000/-  per  month)
seemed  genuine.  Accordingly,  the  learned  Commissioner  calculated   the
compensation as under:
Rs.8,000/- (wage limited to) x 50% x 213.57 (27 years of age factor)
= Rs.8,54,280/-
The learned Commissioner further awarded an interest @ 12% per annum to  the
appellants from the date of accident, as well as Rs.20,000/- as the cost  of
proceedings, the total amount of compensation thus coming  to  Rs.  10,  75,
253/-.

Aggrieved by the same, the Insurance Company filed an appeal  under  Section
30 of the E.C. Act before the High Court of Orissa at Cuttack.  The  learned
single Judge allowed the appeal and  set  aside  the  award  passed  by  the
learned Commissioner. The learned single Judge of the  High  Court  held  as
under:
“Considering the submissions made by the learned  counsel  for  the  parties
and keeping in view the  findings  of  the  Commissioner  as  given  in  the
impugned award with regard to the quantum  of  compensation  amount  awarded
and the basis on which the same has been arrived at, I  feel,  the  interest
of justice would be best served,  if  the  awarded  compensation  amount  of
Rs.10,75,253/- is modified and reduced to Rs.6,00,000/-  However  the  award
of 50% penalty with interest @12% per annum is not proper and justified  and
the same is accordingly waived. Accordingly, the claimants are  entitled  to
modified compensation  amount  of  Rs.6,00,000/-  on  which  no  penalty  or
interest is payable. The impugned award  is  modified  to  the  said  extent
only.”

The present  appeal  has  been  filed  by  the  appellants  challenging  the
correctness of impugned judgment and order passed by the High Court.

Mr. Alakh Alok Srivastava, the learned counsel appearing on  behalf  of  the
appellants  contends  that  the  High  Court  committed  a  grave  error  in
entertaining an appeal under Section 30(1) of the E.C. Act, which  reads  as
under:
“30. Appeals (1) An appeal shall lie to the High Court  from  the  following
orders of a Commissioner namely:-
(a) an order as awarding as compensation  a  lump  sum  whether  by  way  of
redemption of a half-monthly payment or otherwise or disallowing a claim  in
full or in part for a lump sum;”

                    *************************************

The proviso to the Section reads as under:
“Provided that no appeal shall lie against any order  unless  a  substantial
question of law is involved in the appeal and in the case of an order  other
than an order such is referred  to  in  clause  (b)  unless  the  amount  in
dispute in the appeal is not less than three hundred rupees…”
                           (emphasis laid by this Court)

The learned counsel contends that the High Court could not have  entertained
the appeal under Section 30(1) of the E.C. Act in  the  light  of  the  fact
that no  substantial  question of law was involved in the
appeal. The learned counsel places reliance on a decision of this  Court  in
the case of T.S. Shylaja v. Oriental Insurance Co. & Anr.[1],  wherein  this
Court held that the High Court committed an error in entertaining an  appeal
against the decision of the Compensation Commissioner without  answering  or
framing any substantial question of law. In that case, this  Court  held  as
under:
“10. The only reason which the High Court  has  given  to  upset  the  above
finding of the Commissioner is  that  the  Commissioner  could  not  blindly
accept the oral evidence  without  analysing  the  documentary  evidence  on
record. We fail to appreciate as to what was the documentary evidence  which
the High Court had failed to appreciate and what was the  contradiction,  if
any, between such documents and the version given by the witnesses  examined
before the Commissioner. The High Court could not  have,  without  adverting
to the documents vaguely referred to by it have upset the  finding  of  fact
which the Commissioner was entitled to record. Suffice it to say that  apart
from appreciation of evidence  adduced  before  the  Commissioner  the  High
Court has neither referred to nor determined any question of law  much  less
a substantial question of law existence whereof was a condition precedent
for the maintainability of any appeal under  Section  30.  Inasmuch  as  the
High court remained oblivious of  the  basic  requirement  of  law  for  the
maintainability of an appeal before  it  and  inasmuch  as  it  treated  the
appeal to be  one  on  facts  it  committed  an  error  which  needs  to  be
corrected.”

The learned counsel further places reliance on the decision  of  this  Court
in the case of National Insurance Co. Ltd. v. Mastan & Anr.[2],  wherein  it
was held that  an  appeal  under  Section  30  of  the  E.C.  Act  would  be
maintainable subject to the limitations placed under Section 30 itself.

The learned counsel further contends that the High Court patently  erred  in
waiving  off  the  50%  penalty  alongwith  the  12%  interest  payable   by
Respondent No.1 in case of default without assigning the cogent reason.  The
learned counsel places reliance on a  Four  Judge  Bench  decision  of  this
Court in the case of Pratap Narain Singh Deo v. Srinivas Sabata[3],  wherein
this Court held that the amount of compensation is payable from the date  of
accident and not from the date of  award.  The  same  was  reiterated  by  a
Division Bench of this Court in  the  case  of  Oriental  Insurance  Company
Ltd.v. Siby George & Ors.[4], wherein after referring to  several  decisions
of the Court, it was held that:
“In the light of the decisions in Pratap Narain Singh Deo  and  Valsala  K.,
it is not open to contend that the payment of compensation  would  fall  due
only after the Commissioner's order or with reference to the date  on  which
the claim application is made.”

The learned counsel further contends that the High Court committed an  error
in reducing the amount of compensation awarded by the  learned  Commissioner
without assigning any cogent reasons. Further, there was  no  discussion  in
the impugned judgment as to whether there was  any  connection  between  the
death of the deceased and the use of  the  offending  vehicle.  The  learned
counsel places reliance on the  decision  of  this  Court  in  the  case  of
Harijan Mangri Siddakka & Ors. v. Oriental Insurance  Co.  Ltd.  &  Anr.[5],
wherein it was held as under:
“We find that there is practically no discussion on the factual scenario  as
to whether there was any connection between the death and  the  use  of  the
vehicle. It would depend upon the factual scenario in each  case  and  there
cannot be any strait jacket formula to be applied.”

The learned counsel further contends that the deceased had died as a  result
of an injury sustained in an accident arising out of and in  the  course  of
employment. He placed reliance on the decision of this  Court  in  Mackinnon
Mackenzie & Co. (P) Ltd. v. Ibrahim Mohd. Issak[6], wherein it was  held  as
under:
“To come within the Act the injury by accident must arise both  out  of  and
in the course of employment. The words "in the  course  of  the  employment"
mean "in the course of the work which the workman  is  employed  to  do  and
which is incidental to it."  The  words  "arising  out  of  employment"  are
understood to mean that during the course  of  the  employment,  injury  has
resulted from some risk incidental to  the  duties  of  the  service,  when,
unless engaged in the duty owing to the master, it is reasonable to  believe
the workman would not otherwise have suffered.
In other words, there must be a causal  relationship  between  the  accident
and the employment. The expression "arising out of employment" is again  not
confined to the mere nature of the employment.  The  expression  applies  to
employment as such-- to its nature, its conditions, its obligations and  its
incidents. If by reason of any of  those  factors  the  workman  is  brought
within the zone of special danger, the injury  would  be  one  which  arises
"out of employment." To put it differently, if the accident had occurred  or
account of a risk which is an incident of  the  employment,  the  claim  for
compensation must succeed, unless of course the workman has exposed  himself
to an added peril by his own imprudent act.”

The learned counsel contends that the judgment of the High Court thus  being
wholly and patently erroneous is liable to be set aside  and  the  order  of
award of compensation passed by the learned Commissioner be restored.
On the other hand, Mr. K.K. Bhat, the learned counsel  appearing  on  behalf
of the respondent Insurance Company contends that the High  Court  has  been
compassionate and reasonable in allowing even the amount of compensation  it
did award, considering the fact situation of the case on hand. In fact,  the
appellants  are  not  entitled  to  any  compensation  whatsoever  when  the
deceased himself was solely  negligent  and  responsible  for  the  accident
which resulted in his death. The learned  counsel  places  reliance  on  the
three judge Bench decision of this Court in  the  case  of  Khenyei  v.  New
India Assurance Co. Ltd.[7], wherein it was held as under:
“In  the  case  of  contributory  negligence,  a  person  who  has   himself
contributed to  the  extent  cannot  claim  compensation  for  the  injuries
sustained by him in the accident to the extent of his own negligence……”

The learned counsel further contends  that  the  Insurance  Company  is  not
liable to pay the penalty in any case. He places reliance  on  the  decision
of this Court in the case of Ved Prakash v. Premi Devi  &  Ors.[8],  wherein
this Court held as under:
“In other words the insurance company will be liable to meet the  claim  for
compensation along with interest as imposed on the insured employer  by  the
Workmen's Commissioner under the Compensation Act on the conjoint  operation
of Section 3 and Section 4-A Sub-section (3)(a) of the Compensation Act.  So
far as additional amount of compensation by way of penalty  imposed  on  the
insured employer by the Workmen's Commissioner  under  Section  4A(3)(b)  is
concerned, however,  the  insurance  company  would  not  remain  liable  to
reimburse the said claim and it  would  be  the  liability  of  the  insured
employer alone.”

We have heard the learned counsel appearing on behalf of both  the  parties.
We are unable to agree with the contentions advanced by the learned  counsel
appearing on behalf of the respondent Insurance Company.

The E.C. Act is a welfare legislation enacted to secure compensation to  the
poor workmen who suffer from injuries at their place of work.  This  becomes
clear from a perusal of the preamble of the Act which reads as under:
“An Act to provide for the payment by certain classes of employers to  their
workmen of compensation for injury by accident.”

This further becomes clear from a perusal of the Statement  of  Objects  and
Reasons, which reads as under:
 “……The growing complexity of industry in this country, with the  increasing
use  of  machinery  and  consequent  danger  to   workmen,   alongwith   the
comparative poverty of the workmen themselves,  renders  it  advisable  that
they should be protected, as far as possible,  from  hardship  arising  from
accidents.
An additional advantage of legislation of this type is  that  by  increasing
the importance for the employer of adequate safety devices, it  reduces  the
number of accidents to workmen in  a  manner  that  cannot  be  achieved  by
official inspection.  Further,  the  encouragement  given  to  employers  to
provide adequate medical treatment for their  workmen  should  mitigate  the
effects to such accidents as do occur. The  benefits  so  conferred  on  the
workman added to the increased  sense  of  security  which  he  will  enjoy,
should  render  industrial  life  more  attractive  and  thus  increase  the
available supply of labour. At the same time, a  corresponding  increase  in
the efficiency of the average workman may be expected.”
                   (emphasis laid by this Court)

Thus, the E.C. Act is a social welfare  legislation  meant  to  benefit  the
workers and their dependents  in case of death of workman  due  to  accident
caused during and in the course of employment should be construed as such.
Section  3  of  the  E.C.  Act  provides  for   employer’s   liability   for
compensation and reads as:
“ 3 (1) If personal injury is caused to a workman by  accident  arising  out
of and in the course of his employment his employer shall be liable  to  pay
compensation in accordance with the provisions of this Chapter”
                   (emphasis laid by this Court)


The liability of the employer,  thus,  arises,  when  the  workman  sustains
injuries in an accident which arises  out  of  and  in  the  course  of  his
employment. In the case of Regional Director, E.S.I. Corporation &  Anr.  v.
Francis De Costa & Anr.[9], a Three  Judge  Bench  of  this  Court  held  as
under:
“In the case of Dover Navigation Company  Limited  v.  Isabella  Craig  1940
A.C. 190, it was observed by Lord Wright that-
Nothing could be simpler than the words "arising out of and  in  the  course
of the employment." It  is  clear  that  there  are  two  conditions  to  be
fulfilled.  What  arises  "in  the  course  of  the  employment  is  to   be
distinguished from what arises "out of the  employment."  The  former  words
relate to time conditioned by reference to the man's service, the latter  to
causality. Not every accident which occurs to a man during the time when  he
is on his employment, that is directly or indirectly engaged on what  he  is
employed to do, gives a claim to compensation unless it also arises  out  of
the employment. Hence the section imports a distinction which  it  does  not
define. The language is simple and unqualified.
Although the facts of this case are quite dissimilar,  the  principles  laid
down in this case, are instructive and should be borne in mind. In order  to
succeed, it has to  be  proved  by  the  employee  that  (1)  there  was  an
accident, (2) the accident had a causal connection with the  employment  and
(3) the accident must have been suffered in course of employment.”


The learned counsel appearing on behalf of the appellants has  also  rightly
placed reliance on the decision of this  Court  in  the  case  of  Mackinnon
Mackenzie (supra). In the facts of the instant case,  the  deceased  was  on
his way to deliver goods during the course of employment when  he  met  with
the accident. The act to get back onto the moving truck was just an  attempt
to regain control of the truck, which given the  situation,  any  reasonable
person would have tried to do so. The accident, thus,  fairly  and  squarely
arose out of and in the course of his employment.

 The next contention which needs to be dispelled is that the appellants  are
not entitled to any compensation because the deceased died as  a  result  of
his own negligence. We are unable to agree with the same. Section 3  of  the
E.C. Act does not create any  exception  of  the  kind,  which  permits  the
employer to avoid his liability if there  was  negligence  on  part  of  the
workman. The reliance placed on the decisions of this Court on  Contributory
negligence like the Three Judge  Bench  decision  in  the  case  of  Mastaan
(supra) is wholly misplaced as the same have been passed in relation to  the
Motor Vehicles Act, 1988, and have no bearing on the facts of  the  case  on
hand. The E.C. Act does not envisage  a  situation  where  the  compensation
payable to an injured or deceased workman  can  be  reduced  on  account  of
contributory negligence. It has been held by various High Courts  that  mere
negligence does not disentitle a workman to compensation. Lord Atkin in  the
case   of   Harris   v.   Assosciated    Portland    Cement    Manufacturers
Ltd.[10]observed as under:
"Once you have found  the  work  which  he  is  seeking  to  be  within  his
employment the question of negligence, great or small, is irrelevant and  no
amount of negligence in doing an employment job  can  change  the  workman's
action into a non-employment job ... In my opinion if a workman is doing  an
act which is within the scope of his employment in a way which is  negligent
in any degree and is injured by a risk incurred only by that  way  of  doing
it he is entitled to compensation."

The above reasoning has been subsequently adopted by  several  High  Courts.
In the case of Janaki Ammal v. Divisional  Engineer[11],the  High  Court  of
Madras held as under:
“Men who are employed to work in factories and elsewhere are  human  beings,
not machines. They are  subject  to  human  imperfections.  No  man  can  be
expected to work without ever allowing  his  attention  to  wander,  without
ever making a mistake, or slip, without at some period in his  career  being
momentarily careless. Imperfections of this and the  like  nature  form  the
ordinary hazards of employment and bring a case  of  this  kind  within  the
meaning of the Act.”

While no negligence on part of the deceased  has  been  made  out  from  the
facts of the instant case as he was merely  trying  his  best  to  stop  the
truck from moving unmanned, even if there were negligence on  his  part,  it
would not disentitle his dependents from  claiming  compensation  under  the
Act.

Thus, what becomes clear from the preceding discussion is that the  deceased
died in an accident which arose in and during the course of employment.  The
learned counsel for the  appellants  has  rightly  placed  reliance  on  the
decision of this  Court  in  the  case  of  T.S.  Shylaja  (supra),  wherein
referring to proviso of Section 30 of the  E.C.  Act,  this  Court  held  as
under:
“What is important is that in  terms  of  the  1st  proviso,  no  appeal  is
maintainable  against  any  order  passed  by  the  Commissioner  unless   a
substantial question of law is involved. This necessarily implies  that  the
High Court would in the ordinary course formulate  such  a  question  or  at
least address the same in the judgment especially when the High Court  takes
a view contrary to the view taken by the Commissioner.”


In the  light  of  the  well  reasoned  and  elaborate  order  of  award  of
compensation, the High Court could not have reduced the compensation  amount
by more than half by merely mentioning  that  it  is  in  the  ‘interest  of
justice’. It was upon the High Court to explain how  exactly  depriving  the
poor appellants, who have already lost their  elder  son,  of  the  rightful
compensation would serve the ends of justice.

Since neither of the parties produced any document on record  to  prove  the
exact amount of wages being earned by  the  deceased  at  the  time  of  the
accident, to arrive at the amount of wages, the  learned  Commissioner  took
into consideration the fact that the deceased was a highly  skilled  workman
and would often be required to undertake long journeys outside the state  in
the line of duty, especially  considering  the  fact  that  the  vehicle  in
question had a registered National Route Permit. The wages of  the  deceased
were accepted as Rs.4,000/- per month  +  daily  bhatta  of  Rs.6,000/-  per
month, which amounts to a total of Rs.10,000/-. The High Court did not  give
any reason on which basis it interfered with the  finding  recorded  by  the
Commissioner on the aspect of monthly wages  earned  by  the  deceased.  The
impugned judgment does not even mention what according to  the  High  Court,
the wages of the deceased  were  at  the  time  of  the  accident.  Such  an
unnecessary interference on part of the High Court was  absolutely  uncalled
for, especially in light of the fact that the appellant Nos.1 and 2 are  old
and have lost their elder son and  they  have  become  destitutes.  Further,
under the Payment of Wages Act,  1936,  the  onus  is  on  the  employer  to
maintain the register and records of wages, Section 13A of  which  reads  as
under:
“13-A.  Maintenance of registers and records-
(1) Every employer shall maintain such registers  and  records  giving  such
particulars of persons employed by him, the  work  performed  by  them,  the
wages paid to them, the deductions  made  from  their  wages,  the  receipts
given by them and such  other  particulars  and  in  such  form  as  may  be
prescribed.
(2) Every register and record required to be maintained under  this  section
shall, for the purposes of this Act, be preserved  for  a  period  of  three
years after the date of the last entry made therein.”

From a perusal of the aforementioned section it becomes clear that the  onus
to maintain the wage roll was on the employer, i.e. Respondent  No.2.  Since
in the instant case, the employer has failed in his  duty  to  maintain  the
proper records of wages of the deceased, the appellants cannot  be  made  to
suffer for it.
In view of the foregoing, the judgment and order of the High  Court  suffers
from gross infirmity as it has been passed not  only  in  ignorance  of  the
decisions of this Court referred to supra, but also the  provisions  of  the
E.C. Act and therefore, the same is liable to be set aside  and  accordingly
set aside.
The monthly wage of the deceased arrived at by the learned Commissioner  was
Rs.10,000/-. The date of birth of the deceased  according  to  the  Driver’s
License produced on record is 01.07.1984. The date of death of the  deceased
is 19.07.2011.  Thus,  according  to  Schedule  IV  of  the  E.C.  Act,  the
‘completed years of age on the last birthday  of  the  employee  immediately
preceding the date on which the compensation fell due’,  is  27  years,  the
factor for which is 213.57. Hence, the amount  of  compensation  payable  to
the appellants is calculated as under:
Rs.10,000/- x 50% x Rs.213.57 = Rs.10,67,850/-.
Funeral expenses to the tune of Rs.25,000/- are also awarded.
     The total amount of compensation payable thus comes to Rs.10,92,850/-.

Further, an interest at  the  rate  of  12%  per  annum  from  the  date  of
accident, that is 19.07.2011, is also payable to  the  appellants  over  the
above awarded amount.  In  light  of  the  unnecessary  litigation  and  the
hardship of the appellants in spending litigation to  get  the  compensation
which was rightly due to them under the Act, we deem it  fit  to  award  the
appellants costs as Rs. 25,000/-.
  Appeal  is  accordingly  allowed.  The  respondent-Insurance  Company   is
directed to deposit  the  amount  within  six  weeks  from  today  with  the
Employees Compensation Commissioner. On such deposit, he shall disperse  the
same to the appellants.



                                                    …………………………………………………………J.
                                                          [V. GOPALA GOWDA]


                                                    …………………………………………………………J.
                                                         [UDAY UMESH LALIT]
New Delhi,
February 4, 2016

ITEM NO.1A-For Judgment      COURT NO.9            SECTION XV

               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS

Civil Appeal  No(s).869/2016 @ SLP(C) No(s).  1903/2015

JAYA BISWAL & ORS.                                 Appellant(s)

                                VERSUS

BRANCH MANAGER, IFFCO TOKIO GENERAL INSURANCE
COMPANY LTD. & ANR.                                       Respondent(s)

Date : 04/02/2016 This appeal was called on for pronouncement of JUDGMENT
today.

For Appellant(s)
                     Mr. Kedar Nath Tripathy,Adv.

For Respondent(s)
                     Mr. Ranjan Kumar Pandey,Adv.


      Hon'ble Mr. Justice V.Gopala Gowda  pronounced  the  judgment  of  the
Bench comprising His Lordship and Hon'ble Mr. Justice Uday Umesh Lalit.
      Leave granted.
      The amount of compensation payable to the appellants is calculated  as
under:
Rs.10,000/- x 50% x Rs.213.57 = Rs.10,67,850/-.
      Funeral expenses to the tune of Rs.25,000/- are also awarded.
     The total amount of compensation payable thus comes to Rs.10,92,850/-.
      Further, an interest at the rate of 12% per annum  from  the  date  of
accident, that is 19.07.2011, is also payable to  the  appellants  over  the
above awarded amount.  In  light  of  the  unnecessary  litigation  and  the
hardship of the appellants in spending litigation to  get  the  compensation
which was rightly due to them under the Act, we deem it  fit  to  award  the
appellants costs as Rs. 25,000/-.
  The respondent-Insurance Company is directed to deposit the amount  within
six weeks from today with the Employees Compensation Commissioner.  On  such
deposit, he shall disperse the same to the appellants.
      The appeal is allowed in terms of the signed Reportable Judgment.

|(VINOD KUMAR)                          | |(CHANDER BALA)                        |
|COURT MASTER                           | |COURT MASTER                          |



(Signed Reportable judgment is placed on the file)
-----------------------
[1]   [2] (2014) 2 SCC 587
[3]   [4] (2006) 2 SCC 641
[5]   [6] (1976) 1 SCC 289
[7]   [8] (2012) 12 SCC 540
[9]   [10] (2008) 16 SCC 115
[11]  [12] (1969) 2 SCC 607
[13]  [14] (2015) 9 SCC 273
[15]  [16] (1997) 8 SCC 1
[17]  [18] (1996) 6 SCC 1
[19]  [20] 1939 AC 71
[21]  [22]  (1956) 2 LLJ 233