MAMTA DEVI & ORS. versus THE RELIANCE GENERAL INSURANCE COMPANY LIMITED & ANR

MAMTA DEVI & ORS. versus THE RELIANCE GENERAL INSURANCE COMPANY LIMITED & ANR

Filing of a written statement by the insurer alone does not convert a claim into a 'contested' case for purposes of the Section 20(1) and (2) notification; where the employer has admitted material averments and the insurer does not pursue the matter (no cross-examination), the Deputy Labour Commissioner retains jurisdiction to decide the claim, and the admitted monthly income of Rs.6,000 must be used to compute compensation, which is Rs.6,64,110 with interest at 12% p.a. from one month after the accident excluding amounts already paid by the insurer.

Parties
Appellant: Mamta Devi & Ors.; Respondent: The Reliance General Insurance Company Limited; Respondent: ANR.
Jurisdiction
India
Judgment Date
19 May 2023
Procedural Posture
Civil Appeal / Appeal to Supreme Court Against High Court Judgment in Miscellaneous Appeal No.777 of 2014
Outcome
Appeal partly allowed; impugned High Court judgment dated 01.10.2018 set aside
Legal Topics
Section 20 Notification, Jurisdiction of Deputy Labour Commissioner Vs Labour Court, Contested Claim, Quantum of Compensation, Interest on Compensation
Workmen’s Compensation Labour Law Insurance Section 20 Notification Jurisdiction of Deputy Labour Commissioner Vs Labour Court Contested Claim Quantum of Compensation Interest on Compensation

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Parties

Mamta Devi & Ors.

Appellant

The Reliance General Insurance Company Limited

Respondent

ANR.

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court Against High Court Judgment in Miscellaneous Appeal No.777 of 2014

Legal Issues

  1. 1 Whether filing of a written statement by the insurer renders a claim 'contested' for purposes of the notification issued under Section 20(1) and (2) of the Workmen’s Compensation Act, 1923 and divests the Deputy Labour Commissioner-cum-Commissioner of jurisdiction
  2. 2 Whether the unchallenged statement of the deceased's wife regarding income can be accepted for computing compensation
  3. 3 Quantum of compensation and rate/period of interest payable

Ratio Decidendi

Filing of a written statement by the insurer alone does not convert a claim into a 'contested' case for purposes of the Section 20(1) and (2) notification; where the employer has admitted material averments and the insurer does not pursue the matter (no cross-examination), the Deputy Labour Commissioner retains jurisdiction to decide the claim, and the admitted monthly income of Rs.6,000 must be used to compute compensation, which is Rs.6,64,110 with interest at 12% p.a. from one month after the accident excluding amounts already paid by the insurer.

Court Disposition

Appeal partly allowed; impugned High Court judgment dated 01.10.2018 set aside

Orders

  • Award enhanced to Rs.6,64,110 (Rupees Six Lakhs Sixty Four Thousand One Hundred and Ten only) in favour of the claimants
  • Interest at 12% per annum from one month from the date of accident until payment, excluding amount already paid or deposited by the first respondent-insurer