Punjab & Haryana HC Imposes ₹1 Lakh Cost On State For Not Paying Compensation To Deceased Employee's Kin For Two Decades, Filing Frivolous Plea To Avoid Award

The Punjab & Haryana High Court has imposed a cost of Rs.1 lakh on the Punjab Government for not paying the compensation to a driver awarded in 1998 under the Workmen's Compensation Act and filing a petition to avoid depositing the compensation amount.

While imposing the cost, Justice Sanjay Vashisht observed that the State and its authorities filed the petition on the basis of mere technicalities and the petitioners, well acquainted with the law, "its lengthy procedure and aims and objects of the Statute, i.e. Workmen's Compensation Act, cannot be expected to sit idle with closed eyes, and not to pay the awarded amount of compensation to the needy family."

Moreover, it stated that a frivolous attempt had been made by filing the present writ petition before the Court, without pointing out any special reason for doing so, merely to avoid deposit of the compensation amount, for not filing an appeal.

These observations were made while hearing the plea, filed by the Punjab Government authorities, challenging the award, passed by the Commissioner in 1998 under the Workmen's Compensation Act (now re-named as 'the Employees Compensation Act, 1923)-cum-Labour-cum-Conciliation Officer, in Punjab's Bathinda.

A compensation of Rs.1.97 lakh was granted under the Workmen's Compensation Act to a family of a driver, who lost his life during the course of employment. 

The counsel representing the driver's family highlighted that the writ petition against the said award is not maintainable because as per Section 30(1)(a) of the Workmen's Compensation Act, the order passed by the Commissioner is appealable and according to the third proviso, the appeal would not be maintainable until it is accompanied by a certificate of the Commissioner to the effect that the appellant has deposited with him the amount payable under the impugned order.

The statutory period for filing such an appeal is fixed as 60 days. Admittedly, neither the compensation amount has been deposited nor any such certificate of the Commissioner has been appended with the writ petition, he added.

After examining the submissions, the Court noted that since 1998, neither the compensation amount has been deposited before the authority concerned nor paid to the claimants.

It said that the Court  cannot lose sight of the fact that the petitioners herein, against whom the impugned award has been passed, are State Government or its authorities, "i.e. (1) State of Punjab, (2) Secretary to Government Punjab, Information and Public Relation Department, and (3) District Public Relation Officer, Bathinda."

Adding that a frivolous attempt has been made by filing the present writ petition merely to avoid deposit of the compensation amount, for not filing appeal, the Court imposed a cost of Rs. 1 lakh, against the State of Punjab, to be deposited with the Punjab and Haryana High Court Bar Association Lawyers Family Welfare Fund.

Consequently, the plea was dismissed, however, the petition was adjourned "for a short purpose i.e. to apprise the Court as to why the compensation amount along with interest has not been paid till date to the claimants and to produce the copy of the receipt of the deposit of the cost amount."

The matter is deferred to April 15.

Title: State of Punjab and others v. Rajvir Kaur and others

Citation: 2024 LiveLaw (PH) 105

Brijesh, AAG, Punjab.

Baltej Singh Sidhu, Sr. Advocate with Himmat Singh Sidhu, Advocate and Inderpal Singh, Advocate

for respondents No.1 to 4.

Saksham Mahajan, Advocate for respondent No.5.

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