KERALA STATE ELECTRICITY BOARD AND ANR.versusVALSALA K. AND ANR. ETC. ETC.
- Citation
- 1999 INSC 412
- Decided
- 16 September 1999
- Disposal
- Dismissed
Holding
The amendment is not applicable; compensation is determined as per the law in force on the date of the accident.
Summary
The Supreme Court considered whether the 1995 amendment to Sections 4 and 4A of the Workmen's Compensation Act, 1923, which increased compensation amounts and interest rates, applied to claims arising from accidents that occurred before the amendment’s effective date of 15 September 1995. Relying on the earlier decision in Pratap Narain Singh Deo v. Srinivas Sabata (1976), the Court held that the relevant date for determining the liability and quantum of compensation is the date of the accident, not the date of adjudication. Although the amendment was not applicable to pre‑1995 accidents, the Court, noting the trivial amounts involved and the lapse of time, chose not to disturb the High Court orders that had applied the amendment. Consequently, the special leave petitions were dismissed. The judgment also affirmed the correctness of the Kerala High Court’s decision and clarified the law on the applicable date for compensation.
Issues considered
- The amendment to Sections 4 and 4A of the Workmen's Compensation Act, 1923 (Act No. 30 of 1995) is applicable to claims arising from accidents that occurred before 15 September 1995.
Legislation cited
- Constitution of Indias. 136
- Workmen's Compensation Act, 1923s. 4, s. 4A
Subjects
Judgment
KERALA STATE ELECTRICITY BOARD AND ANR. A
v.
V ALSALA K. AND ANR. ETC. ETC.
SEPTEMBER 16, 1999
[DR. A.S. ANAND, C.J., S. RAJENDRA BABU AND B
R.C. LAHOTI, JJ.]
Labour Law:
- Workmen's Compensation Act, 1923:
Ss.4 and 4A-Amendment to by Act 30of1995-Enhancing amount of
compensation and rate of interest w.e.f 15. 9.1995-Applicability ofAmendment
c
to cases arising out of accidents caused prior to 15. 9, 1995-Held, relevant
date for determination of rate of compensation is the date of accident and
- not the date ofadjudication ofclaim-However, in the instant matters, keeping D
in view the particular facts and circumstances of the cases, pettiness of the
amounts involved and the time that has since lapsed, the impugned order
passed on the basis of the 1995 amendment are not interfered with.
Pratap Narain Singh Dea v. Srinivas Sabata and another, (1976)1 E
sec 289, relied on.
United India Insurance Co. Ltd. v. Alavi, (1998) 1KLT951, approved.
CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No.
21613of1997 Etc.
F
From the Judgment and Order dated 9.9.97 of the Kerala High Court in
M.F.A No. 570of1997.
P. Krishnamoorthy, T.G.N. Nair, Romy Chacko, Ms. V. Mohana, Ramesh
Babu M.R., Ms. Malini Poduval, Ms. K. Sarada Devi, B.V. Deepak, K.M.K.
Nair, S.K. Paul, Salil Paul and Ms. Indira Sawhney for the appearing parties. G
The following Order of the Court was delivered :
The neat question involved in these special leave petitions is whether,
the amendment of Sections 4 and 4A of the Workmen's Compensation Act, H
657
658 SUPREME COURT REPORTS (1999) SUPP. 2 S.C.R.
A 1923, made by Act No. 30of1995 with effect from 15.9.1995, enhancing the
amount of compensation and rate of interest, would be attracted to cases
•.:
where the claims in respect of death or permanent disablement resulting from
an accident caused during the course of employment, took place prior to
15.9.1995? ,
B Various High Courts in the country, while dealing with the claim for
compensation under the WorRmen's Compensation Act have uniformly taken
the view that the relevant date for determining the rights and liabilities of the
parties is the date of the accident.
A four judge Bench of this Court in Pratap Narain Singh Deo v. Srinivs
C Sabata and Anr., [1976] I SCC 289 speaking through Shinghal. J. has held ti)at
an employer becomes liable to pay compensation as soon as the personal
injury is caused to the workmen by the accident which arose out of and in
-
the course of employment. Thus, the relevant date for determination of the
rate of compensation, is the date of the accident and not the dat.e of
D adjudication of the claim.
A two judge Bench of this Court in The New India Assurance Company
Limited v. V.K. Neelakandan and Ors. etc. etc.--Civil Appeal Nos. 16904-
16906of1996, decided on 6.11.1996, however, took the view that Workmen's
Compensation Act, being a special legislation for the benefit of the Workmen,
E the benefit as available on the date of adjudication should be extended to. the
workmen and not the compensation which was payable on the date of the
accident. Two judge Bench in Neelakandan 's case (supra), however, did not
take notice of the judgment of the larger Bench in Pratap Naraian Singh
Deo 's case, as it presumably was not brought to the notice of their Lordships.
Be that as it may, in view of the categorical law laid down by the larger Bench
F in Pratap Narain Singh Deo 's case the view expressed by the two judge
Bench in Neelakandan 's case is not correct.
Our attention has also been drawn to a judgment of the Full Bench of
the Kerala High Court ill United India Insurance Co. Ltd. v. Alavi, (1998) 1
G KL T 951 (FB) wherein the Full Bench precisely considered the same question
.....
and examined both the above noted judgments. It took the view that the
injured-workmen becomes entitled to get compensation the moment he suffers
personal injuries of the types contemplated by the provisions of the Workmen's _
Compensation Act and it is the amount of compensation payable on-the date
of the accident and not the amount of compensation payable on account of
H the amendment made in 1995, which is relevant. The decision of the Full
KERALA STATE ELECTRICITY BOARD v. VALSALA K. 659
Bench of the Kerala High Court, to the extent it is in accord with the judgment A
of the larger berich of this Court in Pratap Singh Narain Singh Deo v.
Srinivas Sabata and Anr. (supra) lays down the correct law and we approve
it.
Having answered the question posed in the earlier part of the judgmen_t
in the negative, we shall take up this batch of special leave petitions for B
consideration.
In so far as these special leave petitions are concerned, we find that the
accident took place long time back. Compensation became payable to the
workmen, as it is not disputed that the accidents occurred during the course C
--- of employment, as per the law prior to the amendment made in 1995. Keeping
in view the peculiar facts and circumstances of these cases, pettiness of the
amounts involved in each of the cases and the time that has since elapsed,
we are not inclined to interfere with the impugned orders, decided on the
basis of the 1995 amendment, in exercise of our jurisdiction under Article 136
of the Constitution of India and, therefore, dismiss the special leave petitions, D
but, after clarifying the law, as noticed above.
CIVIi APPEAL NO. 596211997
-
This appeal by special leave calls in question the judgment of the High
Court of Kerala, dated 22.10. 1996. We have heard learned counsel for the E
parties. The view taken by the High Court is unexceptionable and is in accord
with the judgment of this Court in Pratap Narain Singh Deo v. Srinivas
Sabata and Anr., [1976] 1 SCC 289 as also the Full Bench judgment of the
Kerala High Court in United India Insurance Co. Ltd. v. Alavi, ( 1998) I KLT
951 (FB). There is no mtrit in this appeal. It is dismissed. No costs.
F -~
RP. Petitions Appeal dismissed.
....
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