Employees Compensation Act Is Social Security Legislation Providing Speedy Payment Of Compensation : Allahabad HC [Read Judgment]

Adjudicating upon a petition filed by M/S Vasu Infrastructure Private Ltd., through Advocate Akshat Sinha, Justice Dr. Yogendra Kumar Srivastava said,

"The E.C. Act, 1923 being thus a piece of social security and welfare legislation with its dominant purpose to protect the employees, the provisions of the Act have to be interpreted so as to subserve the object of the legislation which is to make the employer responsible for the loss caused to the employee by injuries or death arising out of and in the course of employment."

The Petitioner had challenged an order passed by the Assistant Labour Commissioner whereby the application filed by the Petitioner for recall of the orders dated 5.8.2016 and 28.7.2017 passed in 'ex-parte proceedings' had been rejected. Vide these orders the Labour Commissioner had awarded compensation to the Respondent-employee for having suffered 100% disability in an accident allegedly arising out of and in the course of his employment.

Considerably, Section 3 of the Act provides for employer's liability for compensation in a case if personal injury is caused to an employee by accident arising out of and in the course of his employment. Further, the amount of compensation is to be assessed as per terms of Section 4.

Concurring with the Standing Counsel Mata Prasad's submissions, the court said that the Petitioner was duly served a notice and that it was fully aware of the proceedings. Thus, the Labour Commissioner had rightly proceeded ex-parte.

Reflecting upon the object of the Act, the court said that the Act was meant to protect the workmen from the hardship arising from accidents occurring during the course of employment. Reliance was placed on Oriental Insurance Co. Ltd. v. Mohd. Nasir and Ors., (2009) 6 SCC 280, to hold,

"The Workmen's Compensation Act, 1923 was enacted as a piece of welfare legislation for the purposes of providing social security to employees in a situation of growing complexity of industry with the increasing use of machinery and consequent danger to workmen along with their comparative poverty rendering them vulnerable."

The court also appraised the principle of applying liberal construction to a beneficial legislation having a social welfare purpose in light of Jeewanlal Ltd. & Ors. v. Appellate Authority, (1984) 4 SCC 356, wherein the Apex Court had held,

"In construing a social welfare legislation, the court should adopt a beneficent rule of construction; and if a section is capable of two constructions, that construction should be preferred which fulfils the policy of the Act, and is more beneficial to the persons in whose interest the Act has been passed..."

However, the court categorically stated that the Petitioner was at liberty to challenge the order on its merits by filing a statutory appeal under Section 30 of the Act.

Click here to download the Order