Halfmonthlypaymentjurisprudentialapproach

Any halfmonthly payment payable to' a workman may be reviewed by the

Commissionerontheapplicationofeithertheemployerortheworkmanon.the
groundthattherehasbeenachangeintheconditionoftheworkman.Thepayment
mayuponreview,becontinued,increased,decreasedorendedor(incasetheinjury
hasresultedinapermanentdisablement)convertedintoalumpsumSec.6.

TheWorkmensCompensationAct,1923providesforpaymentofcompensationto
workmenandtheirdependants incaseofinjuryandaccident(includingcertain
occupationaldisease)arisingoutofandinthecourseofemploymentandresulting
indisablementordeath.TheActappliestorailwayservantsandpersonsemployed
inanysuchcapacity as is specified inScheduleIIofthe Act.The scheduleII
includespersonsemployedinfactories,mines,plantations,mechanicallypropelled
vehicles,constructionworksandcertainotherhazardousoccupations.
Theamountofcompensationtobepaiddependsonthenatureoftheinjuryandthe
averagemonthlywagesandageofworkmen.Theminimumandmaximumratesof
compensation payable for death (in such cases it is paid to the dependents of
workmen)andfordisabilityhavebeenfixedandissubjecttorevisionfromtimeto
time.
A Social Security Division has been set up under the Ministry of Labour and
Employment,whichdealswithframingofsocialsecuritypolicyfortheworkers
andimplementationofthevarioussocialsecurityschemes.Itisalsoresponsiblefor
enforcing this Act. The Act is administered by the State Governments through
CommissionersforWorkmen'sCompensation.
ThemainprovisionsoftheActare:

Anemployerisliabletopaycompensation:(i)ifpersonalinjuryiscaused
to a workman by accident arising out of and in the course of his
employment;(ii)ifaworkmanemployedinanyemploymentcontractsany
disease, specified in the Act as an occupational disease peculiar to that

employment.
However,theemployerisnotliabletopaycompensationinthefollowing

cases:
If the injury does not result in the total or partial disablement of the

workmanforaperiodexceedingthreedays.
Iftheinjury,notresultingindeathorpermanenttotaldisablement,iscaused
byanaccidentwhichisdirectlyattributableto:(i)theworkmanhaving
beenatthetimeoftheaccidentundertheinfluenceofdrinkordrugs;or(ii)
thewillfuldisobedienceoftheworkmantoanorderexpresslygiven,ortoa
ruleexpresslyframed,forthepurposeofsecuringthesafetyofworkmen;or
(iii)thewillfulremovalordisregardbytheworkmanofanysafetyguardor
otherdevicewhichhasbeenprovidedforthepurposeofsecuringsafetyof

workmen.
TheStateGovernmentmay,bynotificationintheOfficialGazette,appoint
anypersontobeaCommissionerforWorkmen'sCompensationforsuch
areaasmaybespecifiedinthenotification.AnyCommissionermay,forthe
purposeofdecidinganymatterreferredtohimfordecisionunderthisAct,
chooseoneormorepersonspossessingspecialknowledgeofanymatter

relevanttothematterunderinquirytoassisthiminholdingtheinquiry.
Compensation shall be paid as soon as it falls due. In cases where the
employer does not accept the liability for compensation to the extent
claimed,heshallbeboundtomakeprovisionalpaymentbasedontheextent
ofliabilitywhichheaccepts,and,suchpaymentshallbedepositedwiththe

Commissionerormadetotheworkman,asthecasemaybe.
IfanyquestionarisesinanyproceedingsunderthisActastotheliabilityof
anypersontopaycompensation(includinganyquestionastowhethera
personinjuredisorisnotaworkman)orastotheamountordurationof
compensation (including any question as to the nature or extent of
disablement),thequestionshall,indefaultofagreement,besettledbya
Commissioner.NoCivilCourtshallhavejurisdictiontosettle,decideor
dealwithanyquestionwhichisbyorunderthisActrequiredtobesettled,
decidedordealtwithbyaCommissionerortoenforceanyliabilityincurred
underthisAct.

TheStateGovernmentmay,bynotificationintheOfficialGazette,direct
thateverypersonemployingworkmen,orthatanyspecifiedclassofsuch
persons,shallsendatsuchtimeandinsuchformandtosuchauthority,as
maybespecifiedinthenotification,acorrectreturnspecifyingthenumber
ofinjuriesinrespectofwhichcompensationhasbeenpaidbytheemployer
duringthepreviousyearandtheamountofsuchcompensationtogetherwith
suchotherparticularsastothecompensationastheStateGovernmentmay

direct.
Whoever,failstomaintainanoticebookwhichheisrequiredtomaintain;
orfailstosendtotheCommissionerastatementwhichheisrequiredto
send;orfailstosendareportwhichheisrequiredtosend;orfailstomakea
returnwhichheisrequiredtomake,shallbepunishablewithfine.
Arighttoreceivehalfmonthlypaymentmay,byagreementorbyorderof

theCommissioner,beredeemedbythepaymentofalumpsum.Thisiscalled
commutationofhalfmonthlypayments.Sec.7.

DistributionofCompensation.
Section 8 lays down the following rules regarding the distribution of
compensation:
1. Compensationfordeathandlumpsumpaymentduetoawomanortoa
personunderalegaldisabilitymustbedepositedwiththeCommissioner.
2. Butinthecaseofadeceasedworkman,anemployermaymaketo.any
dependent advances on account of compensation not exceeding an
aggregateofonehundredrupees.Somuchofsuchaggregateasdoesnot
exceedthecompensationpayabletothatdependentshallbedeductedby
theCommissionerfromsuchcompensationandrepaidtotheemployer.
3. AnyothersumamountingtonotlessthanRs.10whichispayableas
compensationmaybedepositedwiththeCommissioneronbehalfofthe
personentitledthereto,
4. ThereceiptoftheCommissionershallbesufficientdischargingrespectof

anycompensationdepositedwithhim.
5. After the deposit of the compensation, the Commissioner shall deduct
therefromtheactualcostoftheworkman'sfuneralexpensestoanamount
not exceeding Rs. 50 and pay the' same to the person by whom the
expenseswereincurred.
6. The Commissioner may serve notices calling upon the dependents to
appearbeforehimforthepurposeofdeterminingthedistributionofthe
compensation.
7. IftheCommissionerissatisfiedthatnodependentexists,heshallrepay
thebalanceofthemoneytotheemployer.
8. The Commissioner shall on application by the employer, furnish a
statementshowingindetailalldisbursementsmade.
9. Thecompensationmoneyistobedistributedamongthedependentsin
suchproportionsastheCommissionerthinksfit.Thewholeofitmaybe
giventooneperson.
10. Exceptinthecaseofawomanorapersonunderalegaldisability,the
compensationmoneyistobepaidJothepersonentitledthereto
11. Moneypayabletoawomanorapersonunderalegaldisabilitymaybe
invested or otherwise dealt with as the Commissioner thinks fit. Half
monthlypaymentspayabletoapersonunderalegaldisabilitymaybe
paidtoadependentoftheworkmanortoanyotherpersonwhomthe
Commissioner thinks best fitted to provide for the welfare of the
workman.
12. The orders of the Commissioner regarding the distribution of
compensationmaybevariedlaterifnecessary.
13. Noticemustbegiventothepartiesaffected.
14. Whereunderthepreviouspara,theCommissionervariesanorderonthe
ground .that the payment of compensation to any person has been
obtainedbyfraud,impersonationorotherimpropermeans,.anyamount
sopaidmayberecoveredbytheprocedurelaiddownfortherecoveryof
arrearsoflandrevenue.

OTHERPROVISIONSREGARDINGCOMPENSATION
PaymentofCompensation.[Sec.4A.]Compensationshallbepaidassoonasit
fallsdue.Wheretheemployerdoesnotaccepttheliabilitytotheextentclaimed,
hemustmakeprovisionalpaymentbasedontheextentofliabilitywhichhe
accepts. This is without prejudice to the right of the workman to make any
furtherclaim.
Ifanemployerfailstopaythecompensationwithinonemonthofthedate
onwhichitfelldue,theCommissionermaydirectthepaymentofsimpleinterest
thereonat6%.
If theCommissionerthinksthatthere.isnojustificationforthedelay,he
maydirect.thepaymentofafurthersum,notexceeding50%ofthesumdue,by
wayofpenalty.
ProtectionofCompensation. SaveasprovidedbythisAct,nolumpsumor
halfmonthlypaymentpayableundertheActshallinanywaybecapableof
beingassignedorchargedorbeliabletoattachmentorpasstoanypersonother
than'theworkmanbyoperationoflaw,norshallanyclaimbesetoffagainstthe
same.Sec.9.
Thissectionhasbeenframed,toprotectasfaraspossibletheworkman
frommoneylenders.
NoticeandClaim.Section10oftheActprovidesthatnoclaimorcompensation
shallbeentertainedbytheCommissionerunlessnoticeoftheaccidenthasbeen
giveninthemannerprovidedassoonaspracticable.(Thisissubjecttocertain
exceptionsnotedbelow.)
5

The required notice must be served upon the employer or upon any of
several employers or upon any person responsible to the employer for the
managementofanybranchofthetradeorbusinessinwhichthe
injuredworkmanwasemployed.

Thenoticeshallgivethenameandaddressofthepersoninjured,thecauseof
theinjuryandthedateoftheaccident.Thenoticemaybegivenbytheinjured
workmanorbyanybodyonhisbehalf.Itmaybeservedbydeliveringitorsending
itbyregisteredpost.TheStateGovernmentmayrequirethatanyprescribedclass
ofemployersshaIlkeepattheplaceofemploymentanoticebook(accessibletoall
workers or persons acting bonafide on their behalf) where the occurrence of
accidentsmayberecorded.Anentryinthenoticebookissufficientnotice.
Thewantofnoticeoranydefectorirregularityinitshallnotbeabartoaclaimin
thefollowingcases:
(1)Whereaworkmandiesoranaccidentoccurringinthepremisesoftheemployer
orwhileworkingunderthecontroloftheemployerorof.anypersonemployedby
him~andtheworkmandiedonthepremisesorwithoutleavingthevicinityofthe
premises.
(2)Iftheemployeroranyoneofseveralemployersoranypersonresponsibletothe
employerforthemanagementofany.branchofthetradeorbusinessinwhichthe
injuredworkmanwasemployed,hadknowledgeoftheaccidentfromanyother
sourceatoraboutthetime.whenitoccurred.
(3) If the Commissioner is satisfied that the failure to give notice was due to
sufficientcause.
Aworkmanisboundtogivenoticeofanyaccidentwhichisnotmerelytrivial,and
it is not for him to decide whether it is likely to give rise to a claim for
compensation.

Section10alsoprovidesthataclaimforcompensationmustbepreferredbefore
theCommissioner.Withintwoyearsoftheoccurrenceoftheaccidentorthedate
ofdeathasthecasemaybe.Incasetheaccidentisthecontractingofadiseasethe
date of its occurrence is the first of the days during which the workman was
6

continuouslyabsentfromworkinconsequenceofthedisablementcausedbythe
disease.
TheCommissionermayentertainaclaimfiledaftertheprescribedtime,ifhe
isofopinionthatthefailuretofileitwithintime,wasdueto.
Fatal Accident. Section 10 A provides that where a Commissioner receives
informationthataworkmanhasdiedasaresultofanaccidentarisingoutofandin
course of his employment, he may send by registered post a notice to the
workman'semployerrequiringhimtosubmit,withinthirtydaysoftheserviceof
thenotice,astatementintheprescribedform,givingthecircumstancesattending
thedeathoftheworkman,andindicatingwhetherintheopinionoftheemployer,
heisorisnotliabletodepositcompensationonaccountofthedeath.
Iftheemployerisofopinionthatheisliable,heshallmakethedepositwithin
thirtydaysoftheserviceofthenotice.Ifheisofopinionthatheisnotliable,he
muststatehisgrounds.Inthelattercase,theCommissioner,aftersuchenquiry
ashemaythinkfitinformanyofthedependentsofthe.deceasedworkmanthat
itisopentothemtopreferaclaimandmaygivethemsuchfurtherinformation
ashemaythinkfit.
Section10Bprovidesthatwherebyanylawforthetimebeinginforce,notice
isrequiredtobegiventoanyauthoritybyoronbehalfofanemployer, at any
accidentresultingindeathorseriousbodilyinjury,thepersonrequiredtogivethe
notice shall also send a report to the Commissioner. The report may be sent
alternativelytoanyotherauthorityprescribedbytheStateGovernment.
TheStategovernmentmayextendthescopeoftheprovisionrequiringreportsof
fatalaccidentstoanyclassofpremises.ButSec.10Bdoesnotapplytofactories
towhichtheEmployees'StateInsuranceActapplies.
MedicalExamination.[Sec.11.]
1.Afteraworkmangivesnoticeofanaccident,theemployermay,withinthree
daysoftheserviceofthenotice,offertohavehimexaminedfreeofchargebya
qualifiedmedicalpractitioner.

2. Any workman in receipt of halfmonthly payments may also be required to

submitforexaminationfromtimetotime.

3.TheExaminationmustbeinaccordancewiththerulesframedforthepurpose..
4.Iftheworkmanrefuses,withoutsufficientcause,tosubmittotheexaminationor
ifheleavethevicinityoftheplaceinwhichhewasemployed,hisrighttoreceive
compensationshallbesuspendedduringthecontinuanceoftherefusaloruntilhis
returntothevicinityandexamination.
5.Incase1heworkman,whorefusedmedicalexamination,subsequentlydies,the
Commissionerhasdiscretionarypowersofdirectpaymentofcompensationtothe
dependentsofthedeceasedworkman.
6.Theconditionofaninjuredworkmanmaybeaggravatedbyrefusaltosubmitto.
medicalexaminationorrefusaltofollowtheinstructionsofthemedicalexaminer
or failure to be attended by or follow the instructions of a qualified medical
practitioner
7.Insuchacasehewouldgetcompensation,notfortheaggravatedinjury,but
forwhattheinjurywouldhavebeenhadhebeenproperlytreated.
Employmentbycontractors.[Sec.12.]
When an employer engages contractors who engage workmen, any workman
injuredmayrecovercompensationfromtheemployerifthefollowingconditions
aresatisfied:
(a)thecontractorisengagedtodoawork,whichispartofthetradeorbusinessof
theprincipal,.
(b)theengagementisinthecourseoforforthepurposesofhistradeorbusiness,
and
(c)theaccidentoccurredinoraboutthevicinityoftheemployer'spremises.
Theworkmanmayalsoproceedagainstthecontractor.Sohehasalternative
remedies.Whentheemployerpayscompensation,heisentitledtobeindemnified
bythecontractor.

Remdiesofemployeragainststranger.[Sec.13.]
Whereaworkmanhasrecoveredcompensationinrespectofanyinjurycaused
undercircumstancescreatingalegalliabilityofsomepersonoverthantheperson

bywhomthecompensationwaspaidandanypersonwhohasbeencalledonto
payanindemnityunderSection12shallbeindemnifiedbythePersonsoliableto
paydamagesasaforesaid.
InsolvencyofEmployer.[Sec.14.]
The liability to pay workmen's compensation can be insured against. If an
employerwhohasenteredintoacontractofinsuranceforthispurpose,becomes
insolvent or enters into a scheme of composition or arrangement or (being a
company)iswoundup,therightsortheemployerasagainsttheinsurershallbe
transferredtoandvestin.theworkman.Theliabilitytopaycompensationtoa
workmanisto.betreatedasapreferreddebtunderinsolvencyandwinding"up.
For this purpose, the liability to pay halfmonthly payments is to be taken as
equivalenttothelumpsumpaymentintowhichitcanbecommuted.Thissection
doesnotapplywhereacompanyiswoundupvoluntarilymerelyforthepurposeof
reconstructionoramalgamationwithanothercompany.
TransferofAssetsbyEmployer.[Sec.14A]Whereanemployertransfers his
assets before any amount due in respect of any compensation, the liability
whereforeaccruedbeforethedateofthetransfer,hasbeenpaid,suchamountshall,
notwithstandinganythingcontainedinanyotherlawforthetimebeinginforce,be
afirstchargeonthatpartof.heassetssotransferredasconsistsofimmovable
property.
Master and Seamen. So far as masters and seamen are concerned, the
provisionsoftheActapplywithcertainmodificationslaiddowninSection15.
Returns.TheStateGovernmentmay,bynotificationintheofficialGazette,
direct employers to submit returns regarding compensation paid by them and
particularsrelatingtothecompensation.Sec.16.
ContractingOut.Section17providesthatanycontractbywhichaworker
relinquishesbisrighttoreceivecompensationforinjuryisnullandvoidinsofaras
itpurportstoremoveorreducetheliabilityofanypersontopaycompensation
underthisAct.

Penalties.Section18Aprovidesforpenaltiesforfailuretoperformtheduties
prescribedundertheAct,e.g.,failuretosendreturnsormaintainnoticebooksetc.
BartoCivilSuits.ACivilCourthasnojurisdictiontosettle,decideordeal
withanyquestionwhich,becauseoftheprovisionsoftheAct,isrequiredtobe
decidedordealtwithbytheCommissionerortoenforceanyliabilityunderthis
Act.Sec.19(2).
Recoveryoftheamountawarded.AnyamountpayableundertheAct,whether
underanagreementorotherwise,shallberecoveredasanarrearoflandrevenue.
Sec.31

10