SHANTILATA SETHY AND ANOTHER versus M/S DIVISIONAL MANAGER, THE NEW INDIA INDIA ASSURANCE COMPANY LIMITED AND ANR.

SHANTILATA SETHY AND ANOTHER versus M/S DIVISIONAL MANAGER, THE NEW INDIA INDIA ASSURANCE COMPANY LIMITED AND ANR.

Where an employer admits the monthly wage of an informal worker, that admission must be accepted absent contrary evidence; a small daily food allowance paid by the employer falls within the exclusion for 'special expenses' in Section 2(m) and is not to be added to wages for computation under Section 4; interest on compensation is payable from the date of the accident under Section 4-A as settled by precedent. Accordingly the High Court erred in substituting the admitted wage with the minimum wage and in curtailing interest.

Parties
Appellant: SHANTILATA SETHY; Appellant: AND ANOTHER; Respondent Insurer: M/S DIVISIONAL MANAGER, THE NEW INDIA ASSURANCE COMPANY LIMITED; Respondent Employer: AND ANR.
Jurisdiction
India
Judgment Date
11 December 2021
Procedural Posture
Civil Appeal to the Supreme Court / Decided (appeal Allowed)
Outcome
Appeals allowed; High Court judgment set aside in part and Commissioner award restored and adjusted
Legal Topics
Compensation Calculation Under Section 4, Interest Under Section 4 a, Definition of Wages Under Section 2(m), Judicial Review of Compensation Awards, Costs and Litigation Conduct
Workmen's Compensation Act, 1923 Motor Accidents Insurance Law Labour Law Compensation Calculation Under Section 4 Interest Under Section 4 a Definition of Wages Under Section 2(m) Judicial Review of Compensation Awards +1 more

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Parties

SHANTILATA SETHY

Appellant

AND ANOTHER

Appellant

M/S DIVISIONAL MANAGER, THE NEW INDIA ASSURANCE COMPANY LIMITED

Respondent Insurer

AND ANR.

Respondent Employer

Procedural Posture

Civil Appeal to the Supreme Court / Decided (appeal Allowed)

Legal Issues

  1. 1 Whether the High Court was justified in reducing the award by replacing the admitted salary with the minimum wage
  2. 2 Whether the Rs.25/day food expense paid by the employer forms part of 'wages' under Section 2(m) or is excluded as a special expense
  3. 3 Whether interest on compensation is payable from the date of the accident under Section 4-A

Ratio Decidendi

Where an employer admits the monthly wage of an informal worker, that admission must be accepted absent contrary evidence; a small daily food allowance paid by the employer falls within the exclusion for 'special expenses' in Section 2(m) and is not to be added to wages for computation under Section 4; interest on compensation is payable from the date of the accident under Section 4-A as settled by precedent. Accordingly the High Court erred in substituting the admitted wage with the minimum wage and in curtailing interest.

Court Disposition

Appeals allowed; High Court judgment set aside in part and Commissioner award restored and adjusted

Orders

  • First respondent to pay Rs.262,164 to the appellants with interest at 12% per annum from the date of the accident till realization
  • Credit to be given for any part of the compensation already paid by the insurer in computing the balance due