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1997 DIGILAW 177 (MAD)

Coromandel Indag Products Private Limited v. Additional Commissioner for Workmens Compensation II Labour Welfare Board Building

1997-02-07

GOVARDHAN

body1997
Judgment :- 1. This appeal is against the order passed by the Additional Commissioner for Workmens Compensation-II (Deputy Commissioner of Labour-II) Madras-6, dated 29-12-1987 in W.C. No. 185/1986. 2. The applicants case is as follows: The applicants son Chandru was employed under the Opposite Party as Lab. Assistant at Vet-Pharm, Padappai, in the accident arising out of and in the course of employment on 9-1-1986 at about 8-45 PM Chandra died. At that time, he was paid a sum of Rs. 250/- per month as wages. The applicant has therefore made a claim before the Opposite Party for compensation. 3. The Opposite Party resisted the same, by contending that the applicant was working at Padappai, and the Employees State Insurance Act (hereinafter called as ‘the Act’) has been extended to him and contributions were made by the employer and therefore, they arc not liable to pay compensation. 4. The Deputy Commissioner of Labour who made an enquiry on these rival contentions of the applicant and the Opposite Party, has given a finding that the workman who was employed at Padappai factory cannot become an insured person as defined under the Act, by virtue of the provisions of the Act not being extended to Padappai area, the Opposite Parry has to pay the compensation fixed by him to the applicant and directed the Opposite Party to deposit a sum of Rs. 21,528/- 5. Aggrieved over the same, the Opposite Party has come forward with this appeal. 6. The learned counsel appearing for the appellant would argue that the applicant was appointed to work in the factory of the Opposite Party, situate at Padappai, and the provisions of the Act has been extended to the Opposite Party and the Employees State Insurance Authorities have given the Insurance Number to the deceased and contributions have also been collected from the employer and the Opposite Party who is the employer of the deceased, having taken effective steps for payment of the compensation to the employees under, being compensated in any mishap, the Employees State Insurance Corporation is bound to pay the compensation to the applicant and the order passed by the Deputy Commissioner, that the Opposite Party has to pay the compensation on account of the provisions of the Act has not been extended to the Padappai village, is not valid and the order is therefore liable to be set aside. According to the learned appearing for the appellant, the situs of the employee was not the criterian for the insurability of an employee. A reading of the order passed by the Deputy Commissioner would show that the Deputy Commissioner has accepted the version of the applicant that the payment of Employees State Insurance contribution by the employer is a voluntary one and since the factory is situated in a Revenue village to which Employees State Insurance Scheme is not extended, the applicant is entitled to claim compensation under the Workmens Compensation Act from the Opposite Party. As per Section 53 of the Act, an insured person or his dependants are not eligible to receive from the employer of the insured person, any compensation and damages under the Workmens Compensation Act in resppect of an employees injury sustained by the insured person under the Act, the question that has to be considered is whether the dependent of the deceased viz. , the applicant is entitled to receive from the employer viz. , the Opposite Party, compensation towards the death of her son on account of the fact that the Opposite Party has made contribution to the Employees State Insurance Corporation. It is to be noted that even before the deceased was appointed by the Opposite Parry, as a Lab. Assistant by its order dated 30th March, 1985 as evidenced by Ex. A-1 and the deceased joining the Opposite Party on 6th April, 1985 as per his joining report, the Opposite Parry has addressed a letter to the Regional Director, Employees State Insurance Corporation on 7-2-1983 under Ex. R-6, seeking clarification whether E.S.I. contribution is payable by them in view of the fact that all the activities of the foundation, viz. , the establishment are in Padappai and the staff are also working in Padappai, which is outside the E.S.I. Territory. This letter under Ex. R-6 would show that the opposite party was aware of the fact that their activities are carried at Padappai which is outside the E.S.I. Territory. Subsequent to this letter dated 7-2-1993, contributions have been paid by the Opposite Party to the Employees State Insurance Corporation in pursuance of the E.S.I. Code allotted to them and the contributions were also made mentioning the insurance number of each and every employee of the Opposite Party. Subsequent to this letter dated 7-2-1993, contributions have been paid by the Opposite Party to the Employees State Insurance Corporation in pursuance of the E.S.I. Code allotted to them and the contributions were also made mentioning the insurance number of each and every employee of the Opposite Party. An inference has therefore to be drawn to the effect that the Opposite Parry, was aware of the fact that they have to make contribution to the Employees State Insurance Corporation and have been making contribution to all their employees. It is needless to say that the Act is a beneficial enactment and the provisions of the same have to be interpreted liberally in favour of the persons for whose benefit, the enactment has been made. If such an interpretation is given, we can come to the conclusion that the deceased Chandran was an employee under the Opposite Party as defined under Section 2(9) of the Act. In the decision reported in Modi Rubber Limited Case (1986 L.I.C. 273) it has been held that Section 2(9) of the Act contemplates a situation where the expression ‘employee’ working in any factory or establishment includes any person employed for wages on work connected with the administration of the factory or the establishment or any department or branch thereof and the object is quite obvious from the provisions, viz. , the benefit which is extended to the employees working in the main factory or establishment as the case may be, will have to be automatically extended to the employees working in all branches wherever they are established, whether they are within the area of operation or outside the area of operation of the Act, not withstanding the fact that number of employees is less than 20. When the establishment of the Opposite party which has been described as a foundation by the Opposite Party in their letter dated 7-2-1983 under Ex. R-3 has addressed a letter to the E.S.I. Authorities to clarify the position. Where the E.S.I. contribution is payable by the foundation to their staff working at Padappai and subsequently when they are making contributions to the E.S.I. Authorities the finding of the Commissioner for Workmens Compensation that the applicant is entitled to receive compensation from the Opposite Party alone and the benevolent provision of the Employees State Insurance Corporation are not available to her is not tenable. In that view, I am of opinion that order passed by the Deputy Commissioner is liable to be set aside. 7. In the result, the appeal is allowed setting aside the order passed by the Additional Commissioner for Workmens Compensation-II Madras. The Opposite Party is directed to render all assistance to the applicant to get the compensation to her from the Employees State Corporation. No costs.