K SIVARAMAN & ORS. versus P SATHISHKUMAR & ANR.

K SIVARAMAN & ORS. versus P SATHISHKUMAR & ANR.

The relevant date for determining compensation under the Employee’s Compensation Act, 1923 is the date of the accident; therefore Act 45 of 2009 (deleting Explanation II and removing the Rs.4,000 deemed cap) does not apply to accidents that occurred prior to its coming into force on 18 January 2010, and the High Court erred in extending that benefit to an accident on 31 January 2008.

Parties
Appellants: K Sivaraman & Ors.; Respondents: P Sathishkumar & Anr.
Jurisdiction
India
Judgment Date
13 February 2020
Procedural Posture
Civil Appeal Under Article 136 (civil Appeal No. 9046 of 2019) / Final Judgment by the Supreme Court (appeal Dismissed)
Outcome
Appeal dismissed
Legal Topics
Employee’s Compensation Act, 1923, Workman Compensation Amendment Act (no.45 of 2009), Retrospectivity of Legislative Amendments, Date of Accident as Relevant Date for Compensation, Computation of Compensation and Deeming Provision (explanation II to Section 4)
Labour and Employment Statutory Interpretation Constitutional Jurisdiction (article 136) Employee’s Compensation Act, 1923 Workman Compensation Amendment Act (no.45 of 2009) Retrospectivity of Legislative Amendments Date of Accident as Relevant Date for Compensation Computation of Compensation and Deeming Provision (explanation II to Section 4)

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Parties

K Sivaraman & Ors.

Appellants

P Sathishkumar & Anr.

Respondents

Procedural Posture

Civil Appeal Under Article 136 (civil Appeal No. 9046 of 2019) / Final Judgment by the Supreme Court (appeal Dismissed)

Legal Issues

  1. 1 Whether deletion of Explanation II by Act 45 of 2009 (removing deemed cap of Rs.4,000) applies to accidents occurring prior to 18 January 2010
  2. 2 What is the relevant date for determination of compensation under the Employee’s Compensation Act, 1923
  3. 3 Whether compensation should be computed on actual proved wages where evidence of higher wages is produced

Ratio Decidendi

The relevant date for determining compensation under the Employee’s Compensation Act, 1923 is the date of the accident; therefore Act 45 of 2009 (deleting Explanation II and removing the Rs.4,000 deemed cap) does not apply to accidents that occurred prior to its coming into force on 18 January 2010, and the High Court erred in extending that benefit to an accident on 31 January 2008.

Court Disposition

Appeal dismissed

Orders

  • Total compensation quantified at Rs.886,120 payable to the appellants
  • Interest payable at 12% per annum from the date of the accident