WORKMEN COMPENSATION ACT 1923

CASE STUDY METTUR THERMAL POWER STATION

CASE-1
Is Proceeding to work covered under the term In The Course of
Employment
An employee employed in Mettur Thermal Power Station, A unit of the Tamil Nadu
Electricity Board, died in the way to his work. The Commissioner for workmens
Compensation Act of the area held that when the employee met with the accident
while proceeding to work, it should be taken as having occurred in the Course Of
Employment and hence the employer was liable to pay compensation. The Employer
challenged the decision of the Workmen Compensation Commissioner before the
Madras High Court.
The Division Bench of the High Court upheld the order of the commissioner making
the following comments.
1.) The words Arising Out of and In The Course of employment are key words
in the Act and the courts have interpreted these elaborately. The Phrase In the
course of Employment suggests the point of time, that is, the injury must be
caused during the currency of employment, whereas the other expressions Out
Of Employment means that there must be some sort of connection between
the employment and injury caused to the employee as a result of the
accident. There is no difficulty in accepting such interpretation of the two
phrases, but to the modern methods
of working of the Industrial
Undertakings, such narrow interpretation does not satisfy their requirements, as
it is difficult task to determine the exact place of employment of an
employee.
2.) The courts have, therefore, applied the Principles of Notional Extension of
Employers Premises. Applying these principles, the supreme court has held that
the place of accident has to be construed as the place of duty of the
employee concerned, even if he had not reached the actual place of work.
Various High Courts have followed the decisions of the Supreme Court in their
judgments. [Superintending Engineer, Mechanical II Mettur Thermal Power
Station, Tamil Nadu Electricity Board V/S Sankupathy 2005 ILLJ 763].
QUESTIONS :
Q-1) What do you understand by In the course of employment in the context of
industrial Injury ?
Q-2.) What does Arising Out Of Employment mean in the context of Industrial injury
caused by accident?
Q-3.) Is an accident met by an employee doing something different from the work
actually assigned to him
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covered under the phrase Arising Out Of Employment ?

Q-4) Is fulfillment of both the conditions Arising Out Of and In The Course Of
Employment necessary for
establishing the employers liability to pay compensation under the Employees
Compensation Act, 1923?

CASE-2
WORKMEN COMPENSATION ACT 1923
CASE STUDY
THE DIVISIONAL TREASURER N.E. RAILWAY AND OTHERS V/S DEVIKALA DEVI
2007 LLR 1027

Is Workmens Compensation Commissioner empowered to

penalty on employer for delayed Payment of Compensation?

impose

An employee of the N.E. Railway, Samastipur (Bihar), died as a result of an accident

while on duty on 28th August 2000. A claim for compensation was made in 2001,
but the payment of the compensation amounting to Rs. 1,42,680 was made on 18 th
May 2002 and 6 June 2002. On account of the delayed payment, the Deputy Labour
commissioner-Cum- Workmens Compensation commissioner directed the treasurer, N.E.
Railway, Samastipur, to deposit 50% of the amount of Compensation, i.e. , Rs. 71,340
as penalty for delayed Payment.
Aggrieved by the order of the Workmens Compensation commissioner, the Railways
filed an Appeal before the Patna High Court. The High Court observed that it was
the duty of the employer for payment of compensation as soon as it has fallen
due. In the present case, the payment was delayed and was paid only after the
authority concerned directed the employer to pay the same. Besides, the employer did
not produce any explanation for the delay caused in the payment of compensation.
The High Court thus upheld the decision of the Workmens Compensation
commissioner requiring the employer to deposit the amount of penalty. [The Divisional
Treasurer N.E. Railway and others V/S DeviKala Devi 2007 LLR 1027}
QUESTIONS :
Q-1) Can the Workmens Compensation commissioner appointed
Government entertain claims
of an employee of the Central Government Undertaking ?
Q-2) Can the State Government
Workmens Compensation

appoint
2

a Deputy Labour

by

the

Commissioner

state

as

commissioner ?
Q-3) Is Workmens Compensation commissioner empowered to direct the employer to
pay interest in case
of Delayed payment of compensation?
Q-4) Within what period is the employer required to pay compensation from the
date it felt due?