Madhya Pradesh High Court Takes Strict View Of State's Delay In Filing Appeal Against Compensation Award, Directs Recovery From Erring Officers

The Madhya Pradesh High Court at Jabalpur recently pulled up the State Authorities for the delay of over 8 years in filing an Appeal against a compensation award passed by Labour court.

The Court has directed the Chief Secretary of the State to conduct an enquiry to determine who was responsible for not filing the appeal within the limitation period and recover the amount involved from the erring officers in equal proportion after allowing them to explain their conduct.

The Single Judge bench of Justice Gurpa Singh Ahluwalia observed  

It is true that the State has to function through its functionaries and sometimes some delay takes place on account of procedural requirements; but, under the pretext of procedural requirement, the State functionaries cannot be allowed to sit over the file and to file the appeal with a long delay of more than eight years without assigning any reason.

The Court while considering the Miscellaneous Appeal under Section 30 of the Employees Compensation Act, 1923 against an award passed by the Commissioner, Employees Compensation Act, Betul noted that it was filed after 8 years and the only reason assigned in the application for the condonation of delay was that the concerned officer sent a letter to the higher authority for necessary sanction for filing could not be filed and the sanction was received on October 2019.  

The Court observed that under the pretext of procedural requirement, the State functionaries cannot be allowed to sit over the file and to file the appeal with a long delay of more than 8 years without assigning any reason. 

The Court opined that the only conclusion that can be drawn is that the whole effort of the erring person who was sitting over the matter was to give undue advantage to the respondents so that the appeal can be dismissed as barred by time. 

"The State must realise that it should not allow its functionaries to act in a malafide, casual and negligent manner and that can be corrected only when a departmental action is taken and stern punishment is imposed on the erring official to protect the interest of the State Govt", the Court further noted. 

The Court pointed out that according to the award, compensation of over three lakhs was passed against the appellant and it is clear from the records of the Tribunal that the appellants were being represented by their counsel and the witness was also cross-examined. 

"It is true that the application for condonation of delay has to be considered with a lenient view but the lenient view cannot be stretched to the extent of treating the State Govt. as a special litigant under an impression that it is not bound by the principles of Limitation Act" the Court said while observing that the State should not file the Application in a casual manner. 

The Court came to the conclusion that the functionaries of the State Govt. were either negligent or casual in dealing with the matter or they were deliberately sleeping over the file to give undue advantage to the respondents and therefore the Court observed that the public exchequer cannot be put under pressure only because the functionaries of the State Government were negligent. 

Therefore, the Court directed the Chief Secretary of the State to conduct an enquiry to find out as to who was responsible for sitting over the matter and not filing the appeal within the period of limitation. 

As per the application for condonation of delay, the compensation amount of Rs.9,17,692 has been deposited.

The Court further directed the Chief Secretary to recover the amount which is to be deposited from the erring officers in equal proportion after allowing them to explain their conduct. 

The Court also directed the Chief Secretary to submit its report on the action taken within 60 days. 

Case Title: The State of Madhya Pradesh and Anr. v. Domalal and Ors. 

Case Citation: 2023 LiveLaw (MP) 47

Click Here To Read/Download The Order