New India Assurance Co. Ltd. v. Lakshmi and others
1991-02-13
RATNAM
body1991
DigiLaw.ai
Judgment :- This Appeal, at the instance of the New India Assurance Company Limited, been preferred against the award of the Motor Accidents Claims Tribunal (V Additional Court), Tiruchirapalli in M.GO.P.No.267 of 1983. The 6th respondent herein owned PTL 8009 and a trailer PL 8063 and they had been insured with the appellant. On one Ka-liamurthy, husband of the. 1st respondent and father of Respondents 2 to was employed as a loadman, was proceeding in the trailer, to go to the fields to lift a sugars and at that time, an accident took place resulting in Kaliamurthy falling down and trailer running over and killing him instantaneously. The case of respondents 1 to 5 was Kaliamurthy lost his life owing to the rash and negligent driving of the tractor and the belonging to the 6th respondent by its driver and in respect of that, compensation in of Rs.50,000 should be awarded to them. This claim was repudiated by the 6th respondent on the ground that the driver of the tractor drove it cautiously and carefully and deceased Kaliamurthy was employed only as a cleaner and the liability to pay compensation in respect of the death of Kaliamurthy would be that of the appellant. The amount compensation claimed was also characterised to be excessive. The appellant repudiated claim of the respondents 1 to 5 contending that the 6th respondent was liable to compensation, as under the terms of the policy, the Insurance company was not liable compensation in respect of passengers carried in the tractor. Further, the appellant disputed its liability to pay the compensation, as claimed by respondents 1 to 5. 2. Before the Tribunal, on behalf of the respondents 1 to 5, Ex.A-1 was marked and the respondent and another were examined as P.Ws.1 and 2 while, on behalf of the appellant and the 6th respondent Exs.B-1 to B-11 were filed and the 6th respondent and another evidence as R.Ws.l and 2. On a consideration of the oral as well as documentary evidence, the Tribunal found that the accident resulting in the death of Kaliamurthy took place only account of the rash and negligent driving of the tractor and the trailer by the driver 6th respondent and that the deceased was employed under the 6th respondent as a man and not as a cleaner.
Considering the terms of the policy, Ex.B-1 (same as Ex.B the Tribunal found that the appellant was liable to pay compensation to respondents 1 accordance with the provisions of the Workmen’s Compensation Act and for computing the compensation payable, the Tribunal took into account the age deceased at 35 at the time of the accident and applying Sec.4 and Schedule IV Workmen’s Compensation Act, as amended by Act 22 of 1984, determined the compensation awardable to respondents 1 to 5 in a sum of Rs.23,647.20 and directed the appellant that amount. It is the correctness of the award so passed that is questioned in this appeal. 3. The only contention urged by learned counsel for the appellant was that the respondents 1 to 5 to claim compensation in respect of the death of Kaliamurthy the day on which the accident took place, viz., 4.6.1983 and the quantum of compensation awardable to respondents 1 to 5 under the provisions of the Workmen’s Compensation (hereinafter referred to as the Act) got fixed and determined on the basis of Sec,4 Schedule IV, as they then stood and the Tribunal was in error in having applied Sec.4 Schedule IV of the Act, as amended by Act 22 of 1984, which was operative from 1.7.1984 quantify the compensation payable to respondents 1 to 5, in respect of an accident that place on 4.6.1983. Reliance in this connection was placed by learned counsel for upon the decisions in Oriental Fire and General Insurance Company Limited v. Bidi, A.C.J. 187, Pratap Narain Singh Deo v. Shrinivas Sabata, 1976 A.C.J. 141 (S.C.), Srinivasan v. Premier Insurance Company Limited, 1982 A.C.J. 191, Kochu Purakkattu Joseph, 1984 A.C.J. 630, General Manager, Western Railway v. Lata 1985 A.C.J. 57, Moti Lal v. Thakur Das, 1985 A.C.J. 634, U.P.State Transport Corporation Abdul Hameed, 1985 A.C.J. 832 and Singareni Collieries v. Commissioner for Workmen Compensation, 1988 A.C.J. 940. Based on the principles laid down in the aforesaid decisions, learned counsel for the appellant further submitted that the liability of the appellant would only be Rs.18,000 and nothing more.
Based on the principles laid down in the aforesaid decisions, learned counsel for the appellant further submitted that the liability of the appellant would only be Rs.18,000 and nothing more. On the other hand, learned counsel for respondents to 5 contended that the provisions of the Act are intended for the benefit and welfare of workmen injured in the course of employment and its provisions ought to receive interpretation beneficial to the workmen, and, therefore, the view taken by the Tribunal the quantum of compensation cannot be taken exception to. It was also further contended that at the time when the Tribunal passed the award, amended Sec.4 and Schedule IV to Act had come into force and that had been given effect to by the Tribunal and therefore, infirmity attached to the quantification of the compensation. 4. Before proceeding to consider the rival contentions put forward, it would be necessary advert to Sec.3 of the Act, which fixes the liability of the employer for payment compensation to workmen injured in an accident arising out of and in the course of employment. Thereunder, the liability of the employer to pay compensation in accordance with the provisions of Chapter II of the Act arises, when personal injury is caused workman by an accident arising out of and in the course of his employment. In this deceased Kaliamurthy had been found by the Tribunal to be a loadman, who had worked under the 6th respondent and lost his life, in the course of his employment as workman. The liability of the 6th respondent for payment of compensation, for the death Kaliamurthy, arose eb instanti when the accident took place, in which deceased Kaliamurthy sustained injuries and later died. However, the quantification remained to be done accordance with the provisions applicable thereto, as on the date on which the accident place and in which the workman received injuries. Even so, having regard to the procedure laid down in the Act, for the computation of the compensation, instant computation is possible and necessarily, therefore, there is bound to be a time interval between sustaining of the injuries by the workmen in the course of his employment and quantification of the compensation in accordance with the provisions of the Act and Schedule and its award either to the concerned workman or to his dependants.
It would indeed be an ideal state of affairs, if compensation for the injuries sustained by a workman in the course of his employment, is determined even on the very day of accident and made available to the workman by the employer, but that is not possible, if the procedure down in the Act is rigidly adhered to, and there are bound to be processual delays. Meanwhile, if there is an alteration in the liability of the employer either under the provisions of the Act or under the Schedule, the employer cannot be subjected to such variations, the right to secure compensation in respect of the injuries sustained by a workman in course of his employment as well as the quantum, got crystalised, even on the date of the accident, though the quantification delayed. By the application of the amended Sec.4 and Schedule IV of the Act in the case, it is seen that an additional or extra liability for payment of compensation is fastened upon the employer in respect of the injuries sustained by the workman in the course employment and in the absence of any clear or specific provision that the amended and Schedule IV would be applicable, resulting in an increase in the liability of the employer to pay compensation, it is difficult to apply amended Sec.4 of the Act, viz., Act 22 of 1984 the amended Schedule IV, imposing a greater burden on the employer, for no fault of view of the foregoing considerations it follows that the liability of the 6th respondent to compensation for the death of Kaliamurthy, who was a workman under the 6th respondent and who died in the course of his employment and the quantum thereof, were unalterably under the provisions of the Act and the Schedule, as they stood on 4.6.1983, when the accident took place. By the Workmen’s Compensation (Amendment) Act, 1984 of 1984), Sec.4 and Schedule IV were amended and under Sec.1(2) of the amending Act, provisions of the amending Act came into force on 1.7.1984 by means of a notification Official Gazette. There is no indication in the provisions of the amending Act that amendments were intended to apply to proceedings, which were pending on 2.7.1984.
There is no indication in the provisions of the amending Act that amendments were intended to apply to proceedings, which were pending on 2.7.1984. doubt, under Sec.3 and Sec.7 of Act 22 of 1984, it has been provided that for Sec.4 Schedule IV of the Principal Act, Sec.4 and Schedule IV as amended, shall be substituted, such substitution also, in the absence of a specific provision in that regard, would only and from 1.7.1984 and not from any anterior or earlier point of time. Thus, having regard the provisions of Act 22 of 1984 and the scope and ambit of the operation of the provisions therein, it is seen that a proper interpretation of its provisions would be to hold that amended Sec.4 and Schedule IV would be effective and operative for purpose of computing compensation in respect of the injuries sustained by the workman, during the course employment, on and after 1.7.1984 and not earlier. 5. Considering the nature of the liability of the employer to pay compensation in respect injuries sustained by a workman in the course of his employment, in Pratap Narain Singh v. Shrini-vas Sabata, 1976 A.C.J. 141 (S.C.), the Supreme Court pointed out that employer became liable to pay compensation as soon as the personal injury was caused the workman by accident, which arose out of and in the course of his employment and is futile to contend that the claim for compensation did not fall due, till it is determined the Commissioner by an order under Sec. 19 of the Act. This decision clearly establishes the liability of the employer to pay compensation for the injuries sustained by a workman the course of his employment arises, when the injury is sustained and the quantum compensation also should be worked out in accordance with the provisions of the Act, as then stand, though the actual quantification may be done at a later point of time considerable time interval. Oriental Fire and General Insurance Company Limited v. 1972 A.C.J. 187, deal with a case of the effect of the amendment to Schedule IV of the during the pendency of proceedings, in respect of the injuries sustained by a workman course of his employment.
Oriental Fire and General Insurance Company Limited v. 1972 A.C.J. 187, deal with a case of the effect of the amendment to Schedule IV of the during the pendency of proceedings, in respect of the injuries sustained by a workman course of his employment. Under the amended provisions, the dependants were entitled be paid a higher compensation than that on the date of death of the workman under unamended schedule and the Tribunal awarded the higher compensation under the amended schedule. While holding that the compensation in accordance with the unamended Schedule alone, which was in force on the date of death of the workman, was payable, it was pointed out that the normal rule of construction of statutes is that its operation is prospective, it is made retrospective either expressly or by necessary implication and that rights liabilities under the Act, got crystalised on the date of death of the workman and the making of an application is only a procedural matter and therefore, the compensation under unamended schedule alone should be paid. This decision fully supports the stand of appellant regarding the applicability of the unamended Schedule IV in the matter determining the quantum of compensation awardable to respondents 1 to 5. Even in a where under the terms of the policy, the liability of the Insurance company was restricted Rs.20,000 but a subsequent, amendment to the provisions of the Motor Vehicles increased such liability of the Insurance Company to Rs.50,000, it was held by the Supreme Court in Padma Srinivasan v. Premier Insurance Company Limited, 1982 A.C.J. 191, that the Insurance Company was liable to pay the higher compensation, for the extent of the liability of the Insurance company is determined with reference to the date of accrual of the cause of action, i.e., the date of the accident. The principle of this decision would also reinforce the stand of the appellant that the date of the accident fixes the liability of employer and the quantum and not the provisions in force at the time of the quantification the compensation.
The principle of this decision would also reinforce the stand of the appellant that the date of the accident fixes the liability of employer and the quantum and not the provisions in force at the time of the quantification the compensation. Again in Kochu Velu v. Purakkattu Joseph, 1984 A.C.J. 630, the question arose whether the amendment of Schedule IV of the Act, which was given retrospective effect from 1.10.1975, would apply in respect of a claim for compensation for the injuries sustained on 16.6.1972 and it was pointed out that the right to receive compensation arose when the injury was sustained and the law as it then stood, would determine the quantum compensation and also the obligation of the employer to pay the same. Referring to Sec.6 the General Clauses Act, the court pointed out that the rights acquired and the obligations incurred, would not be affected, unless there was a different intention and that the legislative intent was clear that it did not affect the rights and obligations acquired prior to that date. Applying this principle to the facts of this case, it follows that when deceased Kaliamurthy was involved in the accident on 4.6.1983 and received injuries and died later, the liability the 6th respondent as an employer for payment of compensation in accordance with provisions of Sec.4 and Schedule IV, as they then stood, got unalterably fixed and determined on that date and the amended Sec.4 and Schedule IV, which came into operation on 1.7.1984, imposing a higher or additional burden on the employer for payment compensation, would not be applicable. General Manager, Western Railway v. Lala Nanda, 1985 A.C.J. 57, dealt with the scope of Schedule IV, as amended by Act 65 of 1976 in case of a workman, who suffered injuries on 11.10.1971 and the amendment to Schedule enhanced the compensation payable retrospectively from 1.10.1975. The Commissioner awarded compensation at the enhanced rates effective from 1.10.1975, though the injuries had been sustained on 11.10.1971. It was pointed out by the Allahabad High Court that liability of the employer got crystalised on the day on which the accident took place and injuries are sustained and the computation of liability has also to be made in the light of existing rates of compensation as found in Schedule IV at the time when the accident place.
It was pointed out by the Allahabad High Court that liability of the employer got crystalised on the day on which the accident took place and injuries are sustained and the computation of liability has also to be made in the light of existing rates of compensation as found in Schedule IV at the time when the accident place. To similar effect is Moti Lal v. Thakur Das, 1985 A.C.J. 634, where it had been down that the yardstick for the award of compensation was Schedule IV as it stood on date of the accident and the amended Schedule IV could not be adopted for quantification compensation. Again in U.P.State Road Transport Corporation v. Abdul Hameed, 1985 832, dealing with the applicability of the amended Schedule IV by Central Act 65 of effective from 1.10.1975 in respect of an accident that took place on 29.3.1975, it pointed out that it would be incongruous to say that the accident took place on 29.3.1975, but that the compensation awarded should be at the rates, which were in force on and 1.10.1975 and that would justify the award of compensation as per the provisions Schedule IV, as they stood on the date of the accident. In Singareni Collieries Commissioner for Workmen’s Compensation, 1988 A.C.J. 940, the accident took place 12.8.1979 and compensation in a sum of Rs.26,880 was awarded by the Commissioner. While the employer disputed his liability to pay the amount determined as compensation, injured worker took up the stand that he was entitled to the higher compensation as amended Schedule IV of the Act. In considering the question whether the claim for higher compensation, made by the workmen, was sustainable on the basis of amended Schedule under the Workmen’s Compensation (Amendment) Act, 1984) (22 of 1984), the pointed out that unless there are express provisions in the amending Act or necessary implications, the amending Act cannot be treated as retrospective increasing the burden the employer.
Referring to Sec.4 of the Act and Sec.3 of the amending Act, the Court down that the use of the words “ substituted provisions ” could not be read, as if incorporated in the Act since its inception and that the increase in the liability under the amended read with Schedule IV would be a pointer in deciding whether the amendment retrospective or not and the mere fortuitous circumstance that some matters were pending, cannot be taken advantage of by the workmen as against other workmen, whose cases been decided earlier before the coming into force of the amending Act. This decision also clearly points out that unless the amending expressly or by implication makes the amendment retrospective in operation, neither amended Sec.4 of the Act nor the amended Schedule IV could be pressed into service for purpose of claiming enhanced compensation thereunder, though the injuries might been sustained by the workman prior to the amendment. The aforesaid decisions support the stand of the appellant Insurance Company that compensation should be paid respondents 1 to 5 at the rates provided under the unamended Schedule IV as on 4.6.1983 when the accident took place and that again, even according to the appellant, would Rs.18,000. It is true that the provisions of the Act have been enacted with a view to available compensation to injured and disabled workmen, but the award of compensation has to be computed and determined within the four corners of the provisions of the Act and considerations of beneficial legislation or liberal interpretation cannot permitted to colour the clear intention of the provisions of the Act and the argument learned counsel for respondents 1 to 5 cannot, therefore, be accepted. 6. Thus, on a due consideration of the facts and circumstances of the case and also provisions of the unamended and amended Act and Schedule IV, it has to be held that Tribunal was in error in having awarded to respondents 1 to 5 a sum of Rs.23,647.20. When the correct amount for which the appellant could be made liable was Rs.18,000 only and was also not disputed by respondents 1 to 5 and respondents 1 to 5 would therefore, entitled to this sum of Rs.18,000 together with interest at 9% p.a. on the sum of Rs.18,000 from 4.10.1985 till the date of deposit of the amount before the tribunal.
The C.M.A therefore, allowed in part to the extent indicated and the award of the Tribunal will stand modified accordingly. There will be no order as to costs. V.K. ---- Appeal allowed in part.