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Dhropadabai and Others v. M/s. Technocraft Toolings

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 8155 of 2014)Decided 19 Mar 2015
Civil Appeal No. 8155 of 2014
Justice Dipak Misra · Justice Prafulla C. Pant

Background

The appellants, wife and minor children of a worker named Ambadas Lahane who suffered a fatal chest pain at his workplace, sought compensation under the Workmen's Compensation Act, 1923. The Labour Court awarded them compensation, holding the death occurred during employment; the employer's appeal succeeded before the Bombay High Court (Aurangabad Bench), which held that since the deceased was an "insured person" under the Employees' State Insurance Act, 1948, his family's exclusive remedy lay there, not under the 1923 Act.

Decision Breakdown

The Supreme Court agreed with the High Court, relying on Section 53 of the ESI Act, which expressly bars an insured employee or his dependents from claiming compensation under the Workmen's Compensation Act or any other law once the ESI Act applies, and on its own precedent (A. Trehan vs. Associated Electrical Agencies) confirming this bar even though ESI benefits are paid periodically rather than as a lump sum. Noting that the employer had, in the meantime, already deposited Rs. 4 lakhs that the family had withdrawn under an earlier interim order, the Court directed that this amount not be clawed back by deducting it from the family's periodical ESI payments, as a matter of fairness given the decade-long litigation. The appeal was otherwise dismissed, confirming that no separate compensation was payable under the 1923 Act.

Lesson Learnt

A worker (or family) covered by the Employees' State Insurance Act cannot additionally claim compensation under the Workmen's Compensation Act for the same injury or death: the ESI Act scheme operates as the exclusive remedy once it applies.

Official source (sci.gov.in)View Judgment (PDF)

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