Kanaga vs M/S. Nalini Engineering Company
2021 Latest Caselaw 1150 Mad

                                                                                   C.M.A.No.158 of 2020

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED 20.01.2021

                                                      CORAM

                              THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM

                                               C.M.A.No.158 of 2020

                     1.Kanaga
                     2.Harish (Minor)
                     3.Haridoss (Minor)                                            .. Appellants


                                                       Versus

                     1.M/s. Nalini Engineering Company,
                       No.5, Plot No.80, VGP Santhoshpuram Park,
                       Part-1, Thambaram Main Road,
                       Sriperumputhur, Kancheepuram District.
                       (Ex-parte in trial Court)

                     2.M/s. Assent Engineering & Infrastructures India (P) Ltd.,
                       No.12, 46th Street, 9th Avenue,
                       Ashok Nagar, Chennai – 600 083.
                       (Ex-parte in trial Court)

                     3.National Insurance Co. Ltd.,
                       No.750, Anna Salai,
                       Chennai – 600 002.                                      .. Respondents




                     1/6


https://www.mhc.tn.gov.in/judis/
                                                                                C.M.A.No.158 of 2020

                     Prayer: Civil Miscellaneous Appeal filed under Section 30 of the
                     Workmen's Compensation Act 1923, to set aside the order dated 15.02.2016
                     in W.C.No.197/2014 on the file of Deputy Commissioner of Labour-II
                     (Commissioner for Workenmen's Compensation-II) Chennai-6 and pass an
                     enhancement of the award amount together with interest at the rate of 12%
                     p.a., from the date of accident.


                                   For Appellants    : Mr. K. Varadha Kamaraj
                                   For Respondents   : R1 & R2 – Ex-parte
                                                       Mr. S. Vadivel, for R3


                                                     JUDGMENT

The award dated 15.02.2016 passed in W.C.No.197/2014 is under

challenge in the present civil miscellaneous appeal. The sole question of

law raised in the miscellaneous appeal on hand is that whether the Deputy

Commissioner of Labour was correct in ignoring the evidence of recording

regarding the monthly income agreed by the Insurance Company in its own

policy.

2. The deceased Mr.P.Sakthivel son of late Periyasamy was working

as a Fitter in the first respondent company. During the course of

https://www.mhc.tn.gov.in/judis/ C.M.A.No.158 of 2020

employment, she met with an accident and subsequently died. The legal

heirs of the deceased employee filed an application under Section 10(1) and

4-A of W.C.Act. The Deputy Commissioner of Labour adjudicated the

issues on merits and with reference to the documents and evidences. The

factum regarding the accident was established and not disputed by the

Insurance Company. The sole question of law raised in the present appeal is

that regarding the fixation of income done by the Deputy Commissioner of

Labour.

3. The learned counsel for the appellant reiterated that even as per

the policy issued by the National Insurance Company, the monthly salary

fixed for skilled workers was Rs.9,750/-. The deceased was working as a

Fitter who is a skilled worker. Therefore, the Deputy Commissioner of

Labour ought to have fixed the monthly salary of Rs.9,750/- for the purpose

of calculating the compensation. Contrarily, the Deputy Commissioner of

Labour fixed a sum of Rs.8,000/- which is the minimum wages fixed by the

Central Government which is amended Notification dated 18.01.2010. As

per the amendment, the minimum wages was enhanced to Rs.8,000/- with

https://www.mhc.tn.gov.in/judis/ C.M.A.No.158 of 2020

effect from 18.01.2010. When the Insurance Company agreed to accept the

monthly salary of Rs.9,750/- for the skilled worker, there is no reason to

reduce the said salary by the Deputy Commissioner of Labour. Thus, the

point decided by the Deputy Commissioner of Labour is in violation of the

terms and conditions of the Insurance Company Policy which was agreed

between the parties.

4. Accordingly, this Court is inclined to enhance the monthly income

of the deceased from Rs.8,000/- to Rs.9,750/-. Thus, the appellants are

entitle for the modified compensation of Rs.10,13,903/- (50/100 X 207.98 X

9750). The third respondent National Insurance Company Limited is

directed to deposit the modified award amount of Rs.10,13,903/- along with

interest at 12% per annum from the date of accident, within a period of

twelve weeks from the date of copy of the judgment and on such deposit,

the major claimants are permitted to withdraw their respective portion of the

compensation by filing an appropriate application and the payments are to

be made through RTGS. As far as the minor share of compensation are

concerned, it is to be deposited in any one of the nationalised bank in an

https://www.mhc.tn.gov.in/judis/ C.M.A.No.158 of 2020

interest bearing deposit scheme till they attain majority. Accordingly, the

award dated 15.02.2016 passed in W.C.No.197/2014 stands modified.

CMA.No.158 of 2020 stands allowed in part.

20.01.2021

Index: Yes/ No AT

To The Deputy Commissioner of Labour – II, Chennai – 6

https://www.mhc.tn.gov.in/judis/ C.M.A.No.158 of 2020

S.M.SUBRAMANIAM,J.

AT

C.M.A.No.158 of 2020

20.01.2021

https://www.mhc.tn.gov.in/judis/