IN THE MATTER OF REFERENCE UNDER SECTION 27 OF THE WORKMENS COMPENSATION ACT, REGARDING MADHO SINGH Vs. STATE

JUDGEMENT

(1.) THIS is a reference made by the Commissioner for Workmen's Compensation under section 27 of the Workmen's Compensation Act, 1923. The facts, briefly stated, are that one Amar Singh was employed as a temporary Mate in the Central Railways. Amar Singh died on 16th April 1971 as he was knocked down by a railway engine while on duty. The Divisional Accounts Officer, Central Railway, deposited Rs. 6,000 as compensation on the death of Amar Singh. The only dependant as defined under section 2(d) of the Act left by the deceased was his widowed mother who also died before she could file any claim application. The widowed mother left behind as her heir Madho Singh. Madho Singh is a brother of the deceased Arnar Singh but he is not a dependant as defined in the Act. Madho Singh applied to the Commissioner for payment of compensation. On these facts the Commissioner has referred the following questions of law for our answer:

(2.) THE Workmen's Compensation Act, 1923, is an Act to provide for the payment by certain classes of employers to their workmen of compensation for injuries by accidents. Section 2(1)(n) of the Act defines "workman". The concluding portion of this definition says that "any reference to workman who has been injured shall, where the workman is dead, includes a reference to his dependants or any of them." The word "dependant" is defined in section 2(1)(d) to mean relatives of a deceased workman enumerated therein. Section 3 of the Act provides that if a personal injury is caused to a workman by accident arising out of and in the course of his employment his employer shall be liable to pay compensation in accordance with the provisions of Chapter II. Section 4 of the Act fixed the amount of compensation payable under section 3. Where death results from the injury the amount of compensation payable is as given in Schedule IV. Neither section 3 nor section 4 indicates as to whom the compensation is payable, but a look at section 8, which deals with distribution of compensation in respect of a workman whose injury has resulted in death, goes to show that the compensation is payable to the dependants as defined in the Act. Sub -section (1) of sections provides that no payment of compensation in respect of a workman whose injury has resulted in death shall be made otherwise than by deposit with the Commissioner. On deposit of compensation under sub -section (1), the Commissioner proceeds under sub -section (4) to deduct from the amount deposited the actual amount of the workman's funeral expenses not exceeding Rs. 50 for payment to the person by whom such expenses were incurred. The Commissioner then causes a notice to be published or served on each of the dependants calling upon the dependants to appear before him for determining the distribution of compensation. If the Commissioner is satisfied after inquiry that no dependant exists, he repays the balance of money to the employer by whom it was deposited Sub -section (5) then provides that compensation deposited is apportioned amongst the dependants of the deceased workman in such proportion as the Commissioner thinks fit. The Commissioner may in his discretion allot the entire amount of compensation to one of the dependants. Section 9 of the Act which bears the heading "Compensation not to be assigned, attached or charged" reads as follows:

(3.) A Full Bench of the Madras High Court, however, in B. M. Habeebullah v. Periaswami : A I R 1977 Mad. 330 overruled its earlier decision in Abdurahiman's case. It was held in this case that Abdurahiman's case had not correctly interpreted section 9 of the Act in the light of the definition of workman and the correct interpretation is that there is no passage of right of compensation from a dependant to his heirs if the dependant dies before receipt of the compensation under section 8. With great respect, we are unable to agree with the view taken by the Full Bench of the Madras High Court. The relevant portion of section 9 of the Act reads as follows: