Workmen Compensation Act, 1923 – Section 4, Section 12 – Workmen Compensation – Assessment of monthly wages for compensation – Principal Employer – Compensation Calculation – Liability of Contractor – The present appeals arose from a judgment dated 31.8.2012, passed by the Commissioner under the Workmen Compensation Act. The claimant, an employee involved in construction work, sought compensation for injuries sustained during employment. The key issue revolved around the determination of the claimant’s monthly wages for compensation purposes.
The accident occurred on 7.2.2006, and the Commissioner awarded compensation based on a monthly wage of Rs. 5,000/-. However, the substantial question of law revolved around whether this assessment was contrary to Explanation II of Section 4 of the Workmen Compensation Act.
The Supreme Court precedent established that for accidents occurring before 18.1.2010, the monthly wages were capped at Rs. 4,000/-, as per the previous Explanation II to Section 4. Thus, the Commissioner’s assessment at Rs. 5,000/- was erroneous.
Witness testimonies supported the claimant’s employment by the contractor (respondent no. 3) and the occurrence of the accident during the course of employment. Therefore, liability rested primarily on respondent no. 3, confirmed by the Commissioner’s findings.
As per Section 4(a) of the Act, compensation must be paid as soon as it falls due, with interest at 12% per annum for defaults. However, no notice to levy a penalty was issued, hence penalty imposition was not justified.
The Commissioner’s findings, being final on facts, were sustained based on the evidence presented. As such, the appellate court couldn’t re-appreciate the evidence unless there was evident perversity in the findings.(Para 17, 36, 38)
HIGH COURT OF HIMACHAL PRADESH
2023 STPL(Web) 358 HP
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Karam Singh Vs. Shera Ram And Others
FAO Nos. 499 of 2012 & 210 of 2014-Decided on 29-11-2023
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