Jobida Bano & Ors. v. Royal Sundram General Insurance Co Ltd & Anr

Delhi High Court · 24 Feb 2023 · 2023:DHC:1532
Tushar Rao Gedela
CM(M) 297/2023
2023:DHC:1532
labor appeal_allowed Significant

AI Summary

Delhi High Court held that territorial jurisdiction under Section 21(1)(b) of the Employees Compensation Act, 1923 includes the residence of the employee or dependant, setting aside the dismissal of claim for lack of jurisdiction and remanding for fresh adjudication.

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Translation output
Neutral Citation Number 2023/DHC/001532
CM(M) 297/2023
HIGH COURT OF DELHI
JUDGMENT
delivered on: 24.02.2023
CM(M) 297/2023 & CM APPL. 9081/2023
JOBIDA BANO & ORS ..... Petitioner
versus
ROYAL SUNDRAM
GENERAL INSURANCE CO LTD & ANR ..... Respondent
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA Advocates who appeared in this case:
For the Petitioner : Mr. CM. Patel and Mr. Parvin Bansal, Advocates
For the Respondent : Mr. Pankaj Gupta for Ms. Suman Bagga, Advocate for R-1.
CORAM:
JUDGMENT
TUSHAR RAO GEDELA, J. (ORAL)

1. The petitioners challenge the order dated 07.04.2021 passed in case bearing No. CEC/SD/D/34/2019/3972-75 titled ‘Jobida Bano & Ors. vs. Sh. Arvindbhai Shambhubhai Viradiya’ by Joint Commissioner Employees Compensation (District South), Labour Department, Govt. of NCT of Delhi, Pushpa Bhawan, Pushp Vihar, New Delhi-110062 under the Employees Compensation Act, 1923 (in short “the Act”) whereby claim of the petitioners was dismissed for lack of jurisdiction. [ The proceeding has been conducted through Hybrid mode ]

2. A perusal of Section 21 of the Act makes it clear that by virtue of sub-Section (b) thereof, an employee or in case of his death, the defendant claiming compensation ordinarily resides has been inserted for the purpose of deciding the territorial jurisdiction where a complaint for compensation under the Act would lie.

3. It is apparent from the perusal of the impugned order that the Joint Commissioner (Labour) had not considered Clause (b) of sub- Section (1) of Section 21 of the Act and had passed an order which is clearly contrary to the provisions of law as mentioned above. It is apposite to extract the provisions of Section 21 of the Act, which is as under:-

“21. Venue of proceeding and transfer.- (1) Where any
matter under this Act is to be done by or before a
Commissioner, the same shall, subject to the provisions of
this Act and to any rules made hereunder, be done by or
before the Commissioner for the area in which—
(a) the accident took place which resulted in the injury; or
(b) the *[employee] or in case of his death, the dependant claiming the compensation ordinarily resides; or
(c) the employer has his registered office: Provided that no matter shall be processed before or by a Commissioner, other than the Commissioner having jurisdiction over the area in which the accident took place, without his giving notice in the manner 15 prescribed by the Central Government to the Commissioner having jurisdiction over the area and the State Government concerned: Provided further that, where the *[employee], being the master of a ship or a seaman or the captain or a member of the crew of an aircraft or a *[employee] in a motor vehicle or a company, meets with the accident outside India any such matter may be done by or before a Commissioner for the area in which the owner or agent of
the ship, aircraft or motor vehicle resides or carries on business or the registered office of the company is situate, as the case may be. (1A) If a Commissioner, other than the Commissioner with whom any money has been deposited under section 8, proceeds with a matter under this Act, the former may for the proper disposal of the matter call for transfer of any records or moneys remaining with the latter and on receipt of such a request, he shall comply with the same. (2) If a Commissioner is satisfied that any matter arising out of any proceedings pending before him can be more conveniently dealt with by any other Commissioner, whether in the same State or not, he may, subject to rules made under this Act, order such matter to be transferred to such other Commissioner either for report or for disposal, and, if he does so, shall forthwith transmit to such other Commissioner all documents relevant for the decision of such matter and, where the matter is transferred for disposal, shall also transmit in the prescribed manner any money remaining in his hands or invested by him for the benefit of any party to the proceedings: Provided that the Commissioner shall not, where any party to the proceedings has appeared before him, make any order of transfer relating to the distribution among dependants of a lump sum without giving such party an opportunity of being heard: (3) The Commissioner to whom any matter is so transferred shall, subject to rules made under this Act, inquire there into and, if the matter was transferred for report, return his report thereon or, if the matter was transferred for disposal, continue the proceedings as if they had originally commenced before him. (4) On receipt of a report from a Commissioner to whom any matter has been transferred for report under subsection (2), the Commissioner by whom it was referred shall decide the matter referred in conformity with such report. (5) The State Government may transfer any matter from any Commissioner appointed by it to any other Commissioner appointed by it.”

4. The Joint Commissioner has misdirected himself by interpreting Section 21 of the Act to mean that the territorial jurisdiction would be vested with the concerned Labour Commissioner where either the accident took place or the employer has its registered office.

5. It is apparent that the Joint Commissioner did not consider Clause (b) of sub-Section (1) of Section 21 of the Act and had proceeded on a basis which was not applicable to the present case. The illegality, material irregularity and judicial impropriety is writ large in the present case.

6. The Joint Commissioner ought to have considered Clause (b) of sub-Section (1) of Section 21 of the Act while dealing with the present case, keeping in view that the Employees Compensation Act, 1923 is a beneficial legislation meant for such purposes.

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7. The Joint Commissioner has overlooked the provisions of law which was staring in the eye and has committed a procedural irregularity and has proceeded in the manner alien to the interpretation of statutes.

8. Mr. Pankaj Gupta, learned counsel appears for the respondent no.1, i.e. Royal Sundram General Insurance Co. Ltd and Anr and accepts notice.

9. Mr. Gupta, learned counsel submits that it is clear that the petitioners have approached this Court after a delay of almost one year after the COVID period and submits that interest, if any, to be awarded by the Joint Commissioner, if at all any award is passed in favour of the petitioner in the interregnum, the period between 28.02.2022 through till 24.02.2023 be not claimable.

10. It is informed that respondents no.1 and 2 had appeared before the Joint Commissioner and filed their respective written statements and pleadings are complete.

11. In view of the aforesaid point on law, this Court has no hesitation in setting aside and quashing the impugned order dated 07.04.2021 and remitting the matter back to the Competent Authority to decide the said claim in accordance with law expeditiously.

12. Keeping in view that the employee had expired on 31.05.2018, the Joint Commissioner is directed to dispose of the claim within six months from the date of receipt of this order.

13. This Court is in agreement with the submissions made by Mr. Gupta and directs that in case any award is passed, the interest for the period between 28.02.2022 through till 24.02.2023 shall not be accorded to the petitioners.

14. In view of the aforesaid directions, the petition is disposed of with no order as to costs.

TUSHAR RAO GEDELA, J FEBRUARY 24, 2023