Employees Compensation Act | Admission Of Appeal Challenging Compensation Award Subject To Raising Substantial Questions Of Law: J&K High Court

Justice Javed Iqbal Wani while adjudicating the matter observed, "an appeal against the order awarding compensation and against an order awarding interest or penalty is to be entertained only by this Court if a substantial question of law is involved."

The case involved an insurance company challenging the award of compensation to a claimant, asserting the non-existence of an employment contract between the insured and the claimant.

The Commissioner had, however, determined that there was indeed an employer-employee relationship, supported by credible evidence presented by the claimant.

The observation made by Justice Wani was based on a reading of Section 30 of the Employees Compensation Act which outlines the conditions under which an appeal can be made to the High Court against orders made by a Commissioner.

Section 30 of the Act specifies that appeals are admissible for orders related to compensation amounts, interest or penalties, the refusal of redemption payments, distribution among dependents of deceased employees, and the registration of agreements.

The ruling also underscored that the appeal by an employer is contingent upon the appellant depositing the amount payable under the order appealed against, with the Commissioner, manifesting a clear restriction on the scope of such appeals.

Justice Wani highlighted that the Employees Compensation Act is fundamentally a piece of welfare legislation designed to provide financial support to workers who suffer injuries or to the dependents of workers who die as a result of accidents arising out of and in the course of their employment.

Affirming the principle, the court stated, "The Act of 1923 is a welfare legislation intended to provide an injured workman or the dependants of a deceased workman who is injured or meets his death by an accident arising out of or in the course of his employment."

Justice Javed Iqbal Wani referenced Section 9 of the Employees Compensation Act in his ruling, reaffirming the need for an efficient and expedited process for determining compensation for injured workers or their dependents.

Observing that the Act intended to provide immediate financial relief to workers without the hindrance of extended legal battles, the court remarked, "The payment of compensation determined by the Commissioner is paid to the workman and is not halted by procedural wrangles and further litigation frustrating the very purpose of the Act of 1923."

The Court concluded that the appellant had failed to raise any substantial question of law, resulting in the dismissal of the appeal.

Case Title: National Insurance Company Vs Zahoor Ahmad Sofi

Citation: 2024 LiveLaw (JKL) 200

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