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The Regional Director vs Murugan
2021 Latest Caselaw 5750 Mad

Citation : 2021 Latest Caselaw 5750 Mad
Judgement Date : 4 March, 2021

Madras High Court
The Regional Director vs Murugan on 4 March, 2021
                                                                                  C.M.A.No.1049 of 2019

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                  DATED : 04.03.2021

                                                       CORAM

                            THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM

                                                C.M.A.No.1049 of 2019

                     The Regional Director,
                     Employees State Insurance Corporation,
                     Puducherry.                                                    ..Appellant

                                                           Vs.
                     1.Murugan
                     2.The Managing Director,
                       Mahabir Packaging,
                       Puducherry.                                                 ..Respondents

                     Prayer : Civil Miscellaneous Appeal filed under Section 82(2) of the
                     ESI Act, against the order of the Employees State Insurance
                     Court(Industrial Tribunal cum Labour Court), Puducherry dated
                     14.09.2017 made in E.S.I.O.P.No.1/2014 to set aside the same.


                                      For Appellant    :         Mr.G.Bharadwaj

                                      For Respondents :          R1 – Mr.N.Narayana swamy
                                                                 R2 – Mr.M.Aravind Subramaniam




https://www.mhc.tn.gov.in/judis/
                     1/8
                                                                                 C.M.A.No.1049 of 2019



                                                 JUDGMENT

The order dated 14.09.2017 passed in E.S.I.O.P.No.1/2014 is

under challenge in the present Civil Miscellaneous Appeal.

2. The Substantial question of law raised in the appeal reads as

under:

“(a) Whether the order of ESI Court is correct in directing the appellant to pay Permanent Disablement Benefit to the first respondent from 09.03.2011 when the sickness benefit had been paid to him for 520 days from the said date?

(b) Whether the ESI Court is correct in directing the appellant to pay the sum of Rs.48,850/- being the extended sickness benefit for 210 days when the first respondent had failed to attend the dispensary during the said period?

(c) Whether the ESI Court is correct in passing an order for monitory compensation of Rs.2 lakhs when there is no provision under the Act?

(d) Whether the ESI Court is correct in directing the appellant to refund the amount which was realized through recovery proceedings under Section 45-G of the Act?”

3. The ESI Corporation is the appellant and the learned counsel https://www.mhc.tn.gov.in/judis/

C.M.A.No.1049 of 2019

appearing on behalf of the appellant mainly contended that the award of

monitory compensation of Rupees Two Lakhs is not contemplated under

the provisions of the ESI Act. Thus, the ESI Court exceeded its

jurisdiction by granting compensation. This apart, for temporary

disablement benefits, the appellant/ESI Corporation has already settled

the amount as per the eligibility. In respect of the period, in which, the

workman has not taken treatment, no payment was made. However, the

ESI Court granted such payment, which is in violation of Section 64 of

the ESI Act.

4. The first respondent/workman, who is employed by the 2nd

respondent, met with an accident. There was an ESI Coverage

admittedly and accordingly, he was permitted to take treatment in the

ESI Hospital. He took treatment in the ESI Hospital and the temporary

disablement benefits were also sanctioned and disbursed to the workman

as per the eligibility and he received the said benefits. However, the

workman approached the Industrial Tribunal under Section 75 of the

ESI Act, to direct the 1st respondent for referring the petitioner to the

Jipmer Hospital Medical Board and to determine the disability in respect

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

C.M.A.No.1049 of 2019

of grievous injuries and further, he sought for permanent disablement

benefit and also to pay extended sickness benefits.

5. The factum regarding the accident was not disputed between

the parties. The workman took treatment and the benefits as applicable

were granted to the workman by the appellant / ESI Corporation. Not

satisfied with the quantum of amount received, the 1st respondent

workman filed an appeal. The ESI Court adjudicated the issues and

granted compensation of Rs.2,00,000/- and also the extended sickness

benefit of Rs.48,825/-.

6. The learned counsel appearing on behalf of the appellant

mainly contended that in the absence of no such provision to grant lump

sum compensation, the ESI Court has committed an error and such a

compensation cannot be granted. As far as the extended sickness

benefits are concerned, all benefit as applicable were settled in favour of

the 1st respondent workman and in respect of the date from 17.08.2012

to 09.04.2013, the 1st respondent workman had not attended the ESI

Hospital for taking treatment and therefore, he has not eligible for

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

C.M.A.No.1049 of 2019

temporary disablement benefits. With reference to the other treatments,

the benefits were settled. Thus, the order is liable to be set aside.

7. The learned counsel appearing on behalf of the 1st respondent

workman disputed the said contention by stating that the nature of the

injuries sustained by the workman were grievous in nature and he took

treatment both in ESI Hospital and outside. Therefore, the Industrial

Tribunal considered the overall facts and circumstances and awarded

compensation.

8. This Court is of the considered opinion that the benefits, which

all are not contemplated under the provisions of the Act or the rules

cannot be granted by the Courts. Courts are bound to grant the benefits

within the scope of the statute. When there is no provision for grant of

compensation in lump sum unlike the Motor Vehicles Act or Workmens'

Compensation Act, the Appellate Court cannot grant compensation in

the absence of any provision to that effect.

9. In the present case, admittedly, there is no provision under the

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

C.M.A.No.1049 of 2019

ESI Act to grant such lump sum of Rs.2,00,000/- and therefore, the ESI

Court has committed an error, which is in violation of the Statute. As far

as the extended sickness benefits are concerned, it is contended that the

disablement benefits were granted to this workman periodically,

considering the treatment undertook and the workman did not take any

treatment for the period from 17.08.2012 to 09.04.2013 and for that

period alone, the said benefit was not granted. Thus, the grant of

Rs.48,825/- is directly in violation of Section 64 of the Act.

10. This Court is of the considered opinion that the compensation

or disablement benefits to the workman are to be granted in accordance

with the provisions of the Act. Undoubtedly, the power of discretion of

the Court cannot be extended beyond the scope of the Statute and it

must be within the ambit of the provisions of the Act and in the present

case, there is no provision to grant lump sum compensation under the

Act. Thus, the very award of compensation by the Industrial Tribunal is

perverse and in violation of the Act itself. As far as the temporary

disablement benefits are concerned, the said benefits were already

settled in favour of the workman and it was not settled only for the

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

C.M.A.No.1049 of 2019

period, in which, he did not took treatment. Thus, the workman is not

entitled for the temporary disablement benefit for the period from

17.08.2012 to 09.04.2013.

11. This being the factum established, this Court is of the

considered opinion that the judgment of the Industrial Tribunal in

ESIOP.No.1 of 2014 is perverse and accordingly, the said order dated

14.09.2017 passed in E.S.I.O.P.No.1/2014 stands set aside and the Civil

Miscellaneous Appeal in C.M.A.No.1049 of 2019 is allowed. No costs.

04.03.2021

kak Index: Yes/No Internet:Yes/No Speaking order/Non-Speaking Order

To

The Employees State Insurance Court, (Industrial Tribunal cum Labour Court), Puducherry.

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

C.M.A.No.1049 of 2019

S.M.SUBRAMANIAM, J.

kak

C.M.A.No.1049 of 2019

04.03.2021

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

 
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