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Tuesday, December 3, 2013

Workmen’s Compensation Act

The rapid growth of the industry in India has also meant the
introduction of new and sophisticated machinery. Given that many of
the people who work these machines are often poor and illiterate,
there can be the danger of accidents. It was the realisation that
workmen should be protected to the extent possible from hardship
arising from accidents, and that compensation should be made available
as early as possible without the claimants having to take recourse to
ordinary civil courts and their untenable delays and expenses, that
led to the Workmen's Compensation Act 1923. A legislation was thought
necessary to reduce the number of accidents, to mitigate the effect of
accidents by provision of suitable medical treatment and to provide
for cheaper and quicker disposal of claims relating to compensation
through specialised Tribunals than was possible under the civil
courts.

The Workmens' Compensation Act 1923 thus provides a machinery for
quick disposal of disputes relating to compensation. Question relating
to the liability of any person to pay compensation (including whether
a person injured is or is not a workman) or to the amount or duration
of compensation (including the nature and extent of disablement) are
settled by a commission, the Commissioner being appointed under the
Act. The power of civil courts to settle or deal with cases which are
to be settled by the Commissioner is thus taken away. Commissioners
are appointed by notifications in the Official Gazette by the state
Government for a particular area or areas. More than one commissioner
can be appointed in one area; in such cases the Commissioners'
business is regulated by the notification between them. The Act also
provides that a Commissioner may, in order to decide any matter
referred to him under the Act, choose one or more persons possessing
special knowledge of any matter relevant to the dispute under the
enquiry to assist him in holding the inquiry. The parties can settle
the claim among themselves and get it recorded. Applications for
claims or for recording settlement of claims or for any matter under
this Act before the Commissioner are required to be made in the form
prescribed under the Rules.

The Commissioner is required to make a brief memorandum of the
substance of the evidence of every witness, to determine the total
amount payable, and give an award. He then requires the particular
employer to deposit the prescribed amount. The Commissioner is also
entitled to make an interim order as he thinks fit. An appeal lies to
the High Court from the following orders of a Commissioner:

(i) an order awarding as compensation a lump sum whether by way of
redemption of a half monthly payment or otherwise disallowing a claim
in full or in part for a lump sum;

(ii) an order awarding interest or penalty;

(iii) an order refusing to allow redemption of a half monthly payment;

(iv) an order providing for the distribution of compensation among the
dependents of a Deceased workman, or disallowing any claim of a person
alleging himself to be such a dependent;

(v) an order allowing or disallowing any claim for the amount of an
indemnity under the provisions of subsection (2) of Section 12; or

(vi) an order refusing to register a memorandum of agreement or
registering it or providing for its registration subject to
conditions.

From the order of the High Court a further appeal can be filed to the
Supreme Court by way of Special Leave to appeal under Article 136 of
the Constitution of India.
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