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Varun Juneja vs. Soniya

First Appeal from Order · 2026:DHC:8045Decided 17 Sept 2026New Delhi Bench
FAO 175/2026CNR: DLHC010247872026
Justice Manoj Kumar Ohri

Background

The father of a factory supervisor who died of ill-health while staying at his employer's factory premises (during a business trip period) sought compensation from the employer under the Employee's Compensation Act. The Commissioner had earlier ruled in the claimant's favour, awarding compensation plus the maximum permissible 50% penalty against the employer for not paying up voluntarily.

Decision Breakdown

The High Court revised the compensation upward, since the employer had itself admitted paying the deceased Rs. 18,000 per month (not the lower Rs. 15,000 minimum-wage figure the Commissioner had used), raising the total compensation to Rs. 15,57,680. On the separate question of penalty, the employer argued the maximum 50% penalty was too harsh, but the Court upheld it, noting the employer only deposited money after the family was forced to start recovery proceedings, more than three and a half years after the death, with no voluntary payment at any point.

Lesson Learnt

Employers cannot rely on a technical minimum-wage notification to lowball a dependent's compensation when they have already admitted paying higher actual wages, and dragging feet on payment invites the maximum statutory penalty.

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