M/S Simplex Infrastructures Ltd v. Chandan Kumar & Anr

Delhi High Court · 12 Jul 2018 · 2018:DHC:4125
J.R. Midha
FAO 339/2016
2018:DHC:4125
labor appeal_dismissed Significant

AI Summary

The Delhi High Court upheld the imposition of a penalty on the principal employer under the Employees Compensation Act for failure to provide timely assistance to an injured subcontractor employee.

Full Text
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FAO 339/2016
HIGH COURT OF DELHI
Date of Decision: 12th July, 2018
FAO 339/2016 & CM APPL.26393/2016
M/S SIMPLEX INFRASTRUCTURES LTD ..... Appellant
Through: Mr.Parthiv Goswami and Mr.Rahul Pratap, Advocates with
Mr.Dharmendra Kumar Mishra, Officer from the appellant company.
VERSUS
CHANDAN KUMAR & ANR ..... Respondents
Through: Mr.R.K. Nain, Advocate for R-1 Mr.Rajeev M. Roy and
Mr.P.Srinivasan, Advocate for R-2 Mr.Sanjoy Ghose, ASC, GNCTD with Mr.Shwetank Singh, Advocate
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT
(ORAL)

1. Vide order dated 04th April, 2016, the Commissioner Employees Compensation awarded compensation of Rs.10,48,656/- to respondent No.1 along with interest at the rate of 12% per annum. The appellant has deposited the compensation amount which has been released to the respondent No.1. Respondent No.2 has reimbursed the said amount to the appellant in terms of order dated 10th January, 2018.

2. Vide order dated 01st March, 2017, this Court issued show cause 2018:DHC:4125 notice to the appellant to show cause why not the penalty be imposed under Section 4A(3)(b) of the Employees Compensation Act. The appellant has filed the reply to the show cause notice.

3. Learned counsel for the appellant submits that the respondent No.1 was employed by the sub-contractor and the appellant did not get the intimation of the accident and therefore, could not provide any medical or other assistance to respondent No.1 after the accident. It is further submitted that the appellant was not aware about the whereabouts of the respondent No.1. It is submitted that the lenient view be taken for imposition of the penalty.

4. Respondent No.1 was working as a helper of the crane on 17th July, 2013 when the hood of the crane rammed into high tension electric wire which resulted in electrocution of the respondent No.1 who suffered grievous injuries which resulted in 25% disability in his both lower limbs. Respondent No.1 is present in Court and he has suffered 25% disability and his medical condition has been seen. Respondent No.1 submits that he is not able to do any work after the accident.

5. Under Section 4A (3) of the Employees Compensation, this Court is empowered to impose penalty up to 50% of the Compensation amount of Rs.10,48,656/-.

6. In the facts and circumstances of the case, penalty of Rs.3,50,000/- is imposed on the appellant. The appellant is directed to deposit the penalty amount with the Registrar General of this Court within four weeks.

7. Upon deposit of the aforesaid amount, Registrar General shall disburse the same to respondent No.1 by instructing UCO Bank as under:-

(i) Rs.2,50,000/- be kept in 5 FDRs of Rs.50,000/- each for the period of 1 year, 2 years, 3 years, 4 years and 5 years respectively with cumulative interest in the name of respondent No.1.

(ii) Rs.1,00,000/- be transferred to savings bank account

8. All the original FDRs shall remain with State Bank of India, Kanjhawala Village Branch. However, the statement containing FDR number, amount, date of maturity and maturity amount shall be furnished by State Bank of India to the respondent No.1.

9. The maturity amounts of the FDRs be released to respondent in his aforesaid savings bank account.

10. No loan or advance or pre-mature discharge shall be permitted without the permission of this Court.

11. State Bank of India, Kanjhawala Village Branch shall permit respondent to withdraw money from her savings bank account by means of a withdrawal form.

12. Appeal is disposed of in the above terms.

13. Pending application is disposed of.

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14. List for reporting compliance on 19th November, 2018. JULY 12, 2018 J.R.MIDHA, J. ds