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New Delhi, Oct 29 (IANS) The Supreme Court has suggested that the legislature reconsider outdated provisions of the Employees’ Compensation Act, 1923, emphasizing the need to modernize the age-old labor laws.
A bench of Justices Rajesh Bindal and Manmohan said that certain clauses defining “dependents” in the 1923 Act have lost their relevance in the current socio-legal context.
It pointed out the impracticality of the existing wording in section 2(1)(d)(iii)(d) of the Act, which defines a dependent as “a minor brother, or an unmarried sister or, if a minor, a widowed sister”.
“The Employees’ Compensation Act was enacted in the year 1923. The definition of the word ‘dependent’ in section 2(1)(d)(iii)(d) means ‘a minor brother or an unmarried sister or a widowed sister if she is a minor’. At the present time, one would not ordinarily find a widowed sister who is a minor, especially after the enactment of the Hindu Marriage Act, 1955,” the bench led by Justice Bindal said.
To address the issue, the Supreme Court directed that a copy of the order be sent to the Ministry of Law and Justice for further action.
“In our view, this matter needs to be considered by the Law Commission of India for suitable amendment of the above provision or any other in the 1923 Act,” the order said.
“A copy of the order shall be sent to the Secretary, Ministry of Law and Justice, who may also send it to the Chairman, Law Commission of India,” it said.
The Special Leave Petition (SLP) stems from a judgment of the Karnataka High Court, which had upheld compensation granted to two widowed sisters of a deceased employee by recognizing them as his dependents under the Act.
The insurance company challenged the award, arguing that the statute only recognizes “the widowed sister if a minor” as a dependent and that the two widowed sisters were not minors at the time of her demise.
After hearing the arguments from both sides, the top court said: “Considering the amount involved in the present appeal, we do not wish to interfere with the impugned judgment. However, the appeal is dismissed, leaving open a question of law.”
The apex court registry was directed to inform the respondents, including the two widowed sisters, about the dismissal of the appeal so that the compensation amount deposited in the Karnataka High Court could be recovered.
A bench led by Justice Bindal clarified, “If any of the above respondents has died, his legal heirs are permitted to withdraw the amount along with the interest accrued thereon.”
In an earlier order passed on August 24, 2023, the Supreme Court had sought assistance from the Central government in interpreting the word “dependent”, noting that the deceased worker was survived by two widowed sisters who, despite not being minors, were financially dependent on him.
–IANS
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