LexThe WORKMEN’S COMPENSATION ACT, 1923
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16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
INDEX
THE WORKMEN’S COMPENSATION ACT, 1923
Section Particulars
Introduction
CHAPTER I : PRELIMINARY
1. Short title, extent and commencement
2. Definitions
CHAPTER II : WORKMEN’S COMPENSATION
3. Employer’s liability for compensation
4. Amount of compensation
4A. Compensation to be paid when due and penalty f or default
5. Method of calculating wages
6. Review
7. Commutation of half-monthly payments
8. Distribution of compensation
9. Compensation not to be assigned, attached or ch arged
10. Notice and claim
10A. Power to require from employers statements reg arding fatal
accidents
10B. Reports of fatal accidents and serious bodily injuries
11. Medical examination
12. Contracting
13. Remedies of employer against stranger
14. Insolvency of employer
14A. Compensation to be first charge on assets transferr ed by
employer
15. Special provisions relating to masters and sea men
15A. Special provisions relating to captains and o ther members of
crew of aircrafts
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
15B. Special provisions relating to workmen abroad of companies
and motor vehicles
16. Returns as to compensation
17. Contracting out
18. Proof of age
18A. Penalties
CHAPTER III: COMMISSIONERS
19. Reference to Commissioners
20. Appointment of Commissioners
21. Venue of proceedings and transfer
22. Form of application
22A. Power of Commissioner to require further depo sit in cases of
fatal accident
23. Powers and procedure of Commissioners
24. Appearance of parties
25. Method of recording evidence
26. Costs
27. Power to submit cases
28. Registration of agreements
29. Effect of failure to register agreement
30. Appeals
30A. Withholding of certain payments pending decis ion of appeal
31. Recovery
CHAPTER IV : RULES
32. Power of the State Government to make rules
33. [Repealed]
34. Publication of rules
35. Rules to give effect to arrangements with othe r countries for
the transfer of money paid as compensation
36. Rules made by Central Governmen t to be laid before
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
Parliament
SCHEDULE I List of injuries
SCHEDULE II List of persons who, subject to the provisions of
section 2(l)(n), are included in the definition of
workmen
SCHEDULE III List of occupational diseases
SCHEDULE IV Factors for wor king out lump sum equivalent of
compensation amount in case of permanent
disablement and death
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
THE WORKMEN’S COMPENSATION ACT, 1923
INTRODUCTION
The growing complexity of industry in this country , with the increasing use of
machinery and consequent danger to workmen, along w ith the comparative
poverty of the workmen themselves, rendered it advi sable that they should be
protected, as far as possible from hardship arising from accidents. After a
detailed examination of the question by the Governm ent of India, Local
Governments were addressed in July 1921, and provis ional views of the
Government of India were published for general info rmation. The advisability of
legislation had been accepted by the great majority of Local Governments and of
employers’ and workers’ associations and the Govern ment of India believed that
public opinion generally is in favour of legislatio n. In June, 1922 a committee was
convened to consider the question. After considerin g the numerous replies and
opinions received by the Government of India, the committee was unanimously in
favour of legislation, and drew up detailed recomme ndations. On the
recommendations of the committee the Workmen’s Comp ensation Bill was
introduced in the Legislature.
STATEMENT OF OBJECTS AND REASONS
The general principles of workmen’s compensation c ommand almost
universal acceptance and India is now nearly alone among civilised countries in
being without legislation embodying those principle s. For a number of years the
more generous employers have been in the habit of g iving compensation
voluntarily, but this practice is by no means gener al. The growing complexity of
industry in this country, with the increasing use o f machinery and consequent
danger to workmen, along with the comparative pover ty of the workmen
themselves, renders it advisable that they should b e protected, as far as possible
from hardship arising from accidents.
An additional advantage of legislation of this typ e is that by increasing the
importance for the employer of adequate safety devices, it reduces the number of
accidents to workmen in a manner that cannot be ach ieved by official inspection.
Further, the encouragement given to employers to pr ovide adequate medical
treatment for their workmen should mitigate the eff ects of such accidents as do
occur. The benefits so conferred on the workman added to t he increased sense
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
of security which he will enjoy, should render indu strial life more attractive and
thus increase the available supply of labour. At th e same time, a corresponding
increase in the efficiency of the average workman m ay be expected. A system of
insurance would prevent time burden from pressing t oo heavily on any particular
employer.
After a detailed examination of the question by th e Government of India,
Local Governments were addressed in July 1921, and provisional views of the
Government of India were published for general info rmation. The advisability of
legislation has been accepted by the great majority of Local Governments and ‘at
employers’ and workers’ association and the Governm ent of India believe that
public opinion generally is in favour of legislation.
In June 1922, a committee was convened to consider the question. This
committee was composed, for the most part of member s of the Imperial
Legislature. After considering the numerous replies and opinions received by the
Government of India, the committee was unanimously in favour of legislation and
drew up detailed recommendations regarding the line s which in its opinion such
legislation should follow. The Bill now presented f ollows these recommendations
closely. A number of supplementary provisions have been added where
necessary, but practically no variations of importance have been made.
The Bill contains two distinct proposals. In Chapt er II modifications are made
in the ordinary civil law affecting the liability o f employers for the damages in
respect of injuries sustained by their workmen; the se clauses will operate only in
actions before the ordinary civil courts. The main part of the Bill makes provisions
for workmen’s compensation and sets up special mach inery to deal with claims
falling under this category.
Both parts of the Bill, however, apply to the same classes of workmen. If the
scope of the employers’ liability clauses was made wider than the scope of the
workmen’s compensation provisions, there would be c onsiderable danger of a
great increase in litigation. The classes included are those whose inclusion was
recommended by the committee, and are specified in Schedule II. Two criteria
have been followed in the determination of the classes to be included—
(1) that the Bill should be confined to industries which are more or less
organised;
(2) that only workmen whose occupation is hazardous should be included.
The general principle is that the compensation sho uld ordinarily be given to
workmen who sustained personal injuries by accident s arising out of and in the
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
course of their employment. Compensation will also be given in certain limited
circumstances for disease. The actual rates of comp ensation payable are based
on the unanimous recommendation of the committee. T hey are in every case
subject to fixed maxima, in accordance with the committee’s recommendations. It
should be remembered, however, that the more highly paid workmen will be
enabled in cases to which the employers’ liability clauses will apply, to obtain
damages on a scale considerably in excess of the ma ximum fixed for workmen’s
compensation.
A consistent endeavour has been made to give as li ttle opportunity for
disputes as possible. Throughout the Bill in the de finitions adopted the scales
selected, and the exceptions permitted the great ai m has been precision in order
that in as few cases as possible should the validity of a claim for compensation or
the amount of that claim be open to doubt. At the s ame time, on the unanimous
recommendation of the committee provision has been made for special Tribunal
to deal cheaply and expeditiously with any disputes that may arise, and generally
to assist the parties in a manner which is not possible for the ordinary civil courts.
ACT 8 OF 1923
The Workmen’s Compensation Bill having been passed by the Legislature
received its assent on the 5th March, 1923. It came into force on 1st day of July,
1924 as THE WORKMEN’S COMPENSATION ACT, 1923 (8 of 1923).
LIST OF AMENDING ACTS AND ADAPTATION ORDERS
1. The Repealing and Amending Act, 1924 (7 of 1924).
2. The Repealing and Amending Act, 1925 (37 of 1925).
3. The Workmen’s Compensation (Amendment) Act, 1926 (29 of 1926).
4. The Workmen’s Compensation (Amendment) Act, 1929 (5 of 1929).
5. The Workmen’s Compensation (Amendment) Act, 1933 (15 of 1933).
6. The Government of India (Adaptation of Indian Laws) Order, 1937.
7. The Workmen’s Compensation (Amendment) Act, 1937 (7 of 1937).
8. The Workmen’s Compensation (Amendment) Act, 1938 (9 of 1938).
9. The Workmen’s Compensation (Amendment) Act, 1939 (13 of 1939).
10. The Workmen’s Compensation (Second Amendment) Act, 1939 (42 of 1939).
11. The Workmen’s Compensation (Amendment) Act, 1942 (1 of 1942).
12. The Workmen’s Compensation (Amendment) Act, 1946 (1 of 1946).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
13. The Indian Independence (Adaptation of Central Acts and Ordinances)
Order, 1948.
14. The Adaptation of Laws Order, 1950.
15. The Part B States (Laws) Act, 1951 (3 of 1951).
16. The Adaptation of Laws (No. 3} Order, 1956.
17. The Repealing and Amending Act, 1957 (36 of 1957).
18. The Workmen’s Compensation (Amendment) Act, 1959 (8 of 1959).
19. The Repealing and Amending Act, 1960 (58 of 1960).
20. The Workmen’s Compensation (Amendment) Act, 1962 {64 of 1962).
21. The Central Labour Laws {Extension to Jammu and Kashmir) Act, 1970 (51
of 1970).
22. The Workmen’s Compensation (Amendment) Act, 1976 (65 of 1976).
23. The Workmen’s Compensation (Amendment) Act, 1984 (22 of 1984).
24. The Delegated Legislation Provisions (Amendment) Act, 1985 ( 4 of 1986).
25. The Workmen’s Compensation (Amendment) Act, 1995 (30 of 1995).
26. The Workmen’s Compensation (Amendment) Act, 2000 (46 of 2000).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
THE WORKMEN’S COMPENSATION ACT, 1923 1
(8 of 1923)
[5th March, 1923]
An Act to provide for the payment by certain class es of employers to their
workmen of compensation for injury by accident.
whereas it is expedient to provide for the payment by certain classes of
employers to their workmen of compensation for inju ry by accident; It is hereby
enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—
(1) This Act may be called the Workmen’s Compensa tion Act, 1923.
2[(2) It extends to the whole of India 3[***]].
(3) It shall come into force on the first day of July, 1924.
2. Definitions.—
(1) In this Act, unless there is anything repugnant in the subject or context,—
4[***]
(b) “Commissioner” means a Commissioner for Workmen’s Compensation
appointed under section 20;
(c) “compensation” means compensation as provided for by this Act;
5[(d) “dependant” means any of the following relatives of deceased
workman, namely:—
It is well-settled that the Act is a piece of soci al security and welfare
legislation. Its dominant purpose is to protect the workman and, therefore, the
provisions of the Act should not be interpreted too narrowly so as to debar the
1 For Statement of Objects and Reasons, see Gazette of I ndia, 1922, Pt. V, p. 313, and for
Report of Joint Committee, see Gazette of India, 1923, Pt, V, p. 37.
2 Subs, by the A.O. 1950, for sub-section (2).
3 The words “except the State of Jammu and Kashmir” omi tted by Act 51 of 1970, sec. 2 and
Sch. (w.e.f. 1-9-1971).
4 Clause (a) omitted by Act 8 of 1959, sec, 2 (w.e.f. 1-6-1959).
5 Subs, by Act S of 1959, sec. 2, for clause (d) (w.e.f. 1-6-1959).
Case Law
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
workman from compensation which the Parliament thou ght they ought to have.
The intention of the Legislature was to make the em ployer an insurer of the
workman responsible against the loss caused by the injuries or death, which
ought to have happened, while the workman was engag ed in his work; Sunita
Devi v. Autar Singh, (2004) 104 FJK 1007 (Jhar)
(i) a widow, a minor
1[legitimate or adopted] son, an unmarried 2[legitimate or
adopted] daughter or a widowed mother; and
(ii) if wholly dependant on the earnings of the workman at the time of his death, a
son or a daughter who has attained the age of 18 years and who is infirm;
(iii) if wholly or in part dependant on the earning s of the workman at the time of
his death,—
(a) a widower,
(b) a parent other than a widowed mother,
(c) a minor illegitimate son, an unmarried illegiti mate daughter or a daughter
3[legitimate or illegitimate or adopted] if married and a minor or if widowed
and a minor,
(d) a minor brother or an unmarried sister or a widowed sister if a minor,
(e) a widowed daughter-in-law,
(f) a minor child of a pre-deceased son,
(g) a minor child of a pre-deceased daughter where no parent of the child is
alive, or
(h) a paternal grandparent if no parent of the workman is alive;]
4[Explanation.— For the purposes of sub-clause (ii) and items (f) a nd (g) of sub-
clause (iii) references to a son, daughter or child include an adopted son,
daughter or child respectively.]
(e) “employer” includes any body of persons whether incorporated or not and
any managing agent of an employer and the legal rep resentative of a
deceased employer, and, when the services of a work man are temporarily
lent or let on hire to another person by the person with whom the workman
has entered into a contract of service or apprentic eship, means such other
person while the workman is working for him;
1 Subs, by Act 30 of 1995, sec. 2, for “legitimate” (w .e.f. 15-9-1995).
2 Subs, by Act 30 of 1995, sec. 2, for “legitimate” (w .e.f. 15-9-1995).
3 Subs, by Acl 30 of 1995, sec. 2, for “legitimate or illegitimate” (w.e.f. 15-9-1995).
4 Ins. by Act 30 of 1995, sec. 2 (w.e.f. 15-9-1995)
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(f) “managing agent” means any person appointed or acting as the
representative of another person for the purpose of carrying on such other
person’s trade or business, but does not include an individual manager
subordinate to an employer;
1[(ff) “minor” means a person who has not attained the age of eighteen years;]
(g) “partial disablement” means, where the disablement is of a temporary
nature, such disablement as reduces the earning cap acity of a workman in
any employment in which he was engaged at the time of the accident
resulting in the disablement, and, where the disabl ement is of a permanent
nature, such disablement as reduces his earning cap acity in every
employment which he was capable of undertaking at t hat time: provided that
every injury specified 2[in Part II of Schedule I] shall be deemed to resul t in
permanent partial disablement;
(h) “prescribed” means prescribed by rules made under this Act;
(i) “qualified medical practitioner” means any person registered 3[***] under
any 4[Central Act, Provincial Act, or an Act of the Legi slature of a 5[State]]
providing for the maintenance of a register of medi cal practitioners, or, in any
area where no such last-mentioned Act is in force, any person declared by
the State Government, by notification in the Offici al Gazette, to be a qualified
medical practitioner for the purposes of this Act;
6[***]
(k) “seaman” means any person forming part of the crew of any 7[***] ship, but
does not include the master of 8[the] ship; (1) “total disablement” means such
such disablement, whether of a temporary or permane nt nature, as
incapacitates a workman for all work which he was c apable of performing at
the time of the accident resulting in such disablement:
1 Ins. by Act 8 of 1959, sec. 2 (w.e.f. 1-6-1959),
2 Subs. by Act 64 of 1962, sec. 2, for “in Schedule I” (w.e.f. 1-2-1963).
3 Certain words omitted by Act 8 of 1959, sec. 2 (w.e. f. 1-6-1959).
4 Subs. by the A.O. 1950, for the words “Act of the C entral Legislature or of any Legislature in a
Province of India”.
5 Subs. by the A.O. (No. 3) Order, 1956, for “Part A State or Part B State”.
6 Clause (j) omitted by Act 15 of 1933, sec. 2.
7 The word “registered” omitted by Act 15 of 1933, se c. 2.
8 Subs. by Act 15 of 1933, sec. 2, for “any such”.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
1[Provided that permanent total disablement shall be deemed to result from
every injury specified in Part 1 of Schedule I or f rom any combination of
injuries specified in Part II thereof where the aggregate percentage of the loss
of earning capacity, as specified in the said Part II against those injuries,
amounts to one hundred per cent, or more;]
(m) “wages” , includes any privilege or benefit which is capabl e of being
estimated in money, other than a travelling allowan ce or the value of any
travelling concession or a contribution paid by the employer of a workman
towards any pension or provident fund or a sum paid to a workman to cover
any special expenses entailed on him by the nature of his employment;
(n) “workman” means any person 2[***] who is—
(i) a railway servant as defined in 3[clause (34) of section 2 of the Railways
Act, 1989 (24 of 1989)] not permanently employed in any administrative,
district or sub-divisional office of a railway and not employed in any such
capacity as is specified in Schedule II, or 4[(ia)
(a) a master, seaman or other member of the crew of a ship,
(b) a captain or other member of the crew of an aircraft,
(c) a person recruited as driver, helper, mechanic, cleaner or in any other
capacity in connection with a motor vehicle,
(d) a person recruited for work abroad by a company , and who is
employed outside India in any such capacity as is s pecified in
Schedule II and the ship, aircraft or motor vehicle , or company, as the
case may be, is registered in India, or;]
(ii) employed 5[***] 6[***] in any such capacity as is specified in Sched ule II,
whether the contract of employment was made before or after the passing
of this Act and whether such contract is expressed or implied, oral or in
writing; but does not include any person working in the capacity of a
member of 7[the Armed Forces of the Union] 1[***]; and any reference to a
1 Subs. by Act 64 of 1962, sec. 2, for the proviso (w.e. f. 1-2-1963).
2 Certain words omitted by Act 46 of 2000, sec. 2 (w.e .f. 8-12-2000).
3 Subs. by Act 30 of 1995, sec. 2, for “section 3 of th e Indian Railways Act, 1890 (9 of 1890)”
(w.e.f. 15-9-1995).
4 Ins. by Act 30 of 1995, sec. 2 (w.e.f. 15-9-1995).
5 The words “either by way of manual labour or” omi tted by Act 15 of 1933, sec. 2.
6 The words “on monthly wages not exceeding one tho usand rupees” omitted by Act 22 of 1984,
sec. 2 (w.e.f. 1-7-1984).
7 Subs. by the A.O. 1950, for “His Majesty’s naval mili tary or air forces”.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
a workman who has been injured shall, where the wor kman is dead,
include a reference to his dependants or any of them.
(2) The exercise and performance of the powers and duties of a local authority or
of any department 2[acting on behalf of the Government] shall, for the
purposes of this Act, unless a contrary intention a ppears, be deemed to be
the trade or business of such authority or department.
3[(3) The Central Government or the State Government , by notification in the
Official Gazette, after giving not less than three months’ notice of its intention
so to do, may, by a like notification, add to Sched ule II any class of persons
employed in any occupation which it is satisfied is a hazardous occupation,
and the provisions of this Act shall thereupon appl y, in case of a notification
by the Central Government, within the territories t o which the Act extends, or,
in the case of a notification by the State Governme nt, within the State, to
such classes of persons:
Provided that in making addition, the Central Gover nment or the State
Government, as the case may be, may direct that the provisions of this Act
shall apply to such classes of persons in respect of specified injuries only.]
Basis for calculation of compensation
The basis for calculation of compensation is month ly “wages”; Zubeda Bano
v. Maharashtra Road Transport Corporation, 1990 LLR 287 (Bom).
“Batta” does not amount to “wages” for computing c ompensation
“Batta” paid to a workman per day to cover special expenses incurred by him
due to nature of his employment does not amount to “wages” for the purposes of
computing compensation; New India Assurance Co. Ltd ., Hyderabad v. Kotam
Appa Rao, 1995 LLR 609 (AP).
Conditions for treating a person as workman
From the definition of ‘workman’ given in section 2 (1) (n) of the Act, it is clear
that for not treating a person as workman, two cond itions are required to be
proved namely that his employment is of casual natu re and he is not employed
for the purpose of employee’s trade or business and the onus is on the employer
to prove these conditions; Mangala Ben v. Dalip Motwani, 1998 LLR 656,
1 The words “or of the Royal Indian Marine Service” o mitted by the A.O, 1937.
2 Subs. by the A.O. 1937, for “of the Government”.
3 Subs. by Act 30 of 1995, sec. 2, for sub-section (3) (w .e.f. 15-9-1995).
Case Law
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
Power of Commissioner to award more compensation
The Commissioner has power to award compensation m ore than what is
claimed by the workman if the facts do warrant such an award; Karnataka State
Road Transport Corporation v. B.T. Somasekharaiah, 1994 LLR 251 (Karn).
Salesman in arrack shop is a workman
A salesman in an arrack shop is a ‘workman’ in vie w of clause (iii) of
Schedule II as defined under section 2 (1) (n) of the Act; Matheto Joseph v. johay
Sunny, 1995 LLR 390 (Ker),
Workman does not include his heirs and legal repre sentatives
The workman defined in section 2 (1) (n) of the Ac t does not include any of
his heirs and legal representatives; Sumuben v. Pat el Industries, 1994 LLR
338 (Guj).
CHAPTER II
WORKMEN’S COMPENSATION
3. Employer’s liability for compensation. —
(1) If personal injury is caused to a workman by ac cident arising out of and in the
course of his employment, his employer shall be liable to pay compensation
in accordance with the provisions of this Chapter:
Provided that the employer shall not be so liable —
(a) in respect of any injury which does not result in the total or partial
disablement of the workman for a period exceeding
1[three] days;
(b) in respect of any 2[injury, not resulting in death 3[or permanent total
disablement] caused by] an accident which is directly attributable to—
(i) the workman having been at the time thereof un der the influence of
drink or drugs, or
(ii) the wilful disobedience of the workman to an o rder expressly given, or
to a rule expressly framed, for the purpose of secu ring the safety of
workmen, or
(iii) the wilful removal or disregard by the workma n of any safety guard or
other device which he knew to have been provided fo r the purpose of
securing the safety of workman, 4[***].
1 Subs. by Act 8 of 1959, sec. 3, for “seven” (w.e.f. 1- 6-1959).
2 Subs. by Act 15 of 1933, sec. 3, fot “injury to a wo rkman resulting from”.
3 Ins. by Act 30 of 1995, sec. 3 (w.e.f. 15-9-1995],
4 The word “or” omitted by Act 5 of 1929, sec. 2.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
1[***]
2[(2)If a workman employed in any employment specified in Part A of Schedule III
contracts any disease specified therein as an occup ational disease peculiar
to that employment, or if a workman, whilst in the service of an employer in
whose service he has been employed for a continuous period of not less than
six months (which period shall not include a period of service under any other
employer in the same kind of employment) in any emp loyment specified in
Part B of Schedule III, contracts any disease speci fied therein as an
occupational disease peculiar to that employment, o r if a workman whilst in
the service of one or more employers in any employm ent specified in Part C
of Schedule III for such continuous period as the C entral Government may
specify in respect of each such employment, contrac ts any disease specified
therein as an occupational disease peculiar to that employment, the
contracting of the disease shall be deemed to be an injury by accident within
the meaning of this section and, unless the contrar y is provided, the accident
shall be deemed to have arisen out of, and in the course of, the employment:
3[Provided that if it is proved,—
(a) that a workman whilst in the service of one or more employers in any
employment specified in Part C of Schedule II has c ontracted a disease
specified therein as an occupational disease peculi ar to that employment
during a continuous period which is less than the p eriod specified under
this sub-section for that employment; and
(b) that the disease has arisen out of and in the c ourse of the employment,
the contracting of such disease shall be deemed to be an injury by
accident within the meaning of this section:
Provided further that if it is proved that a workm an who having served
under any employer in any employment specified in P art B of Schedule III
or who having served under one or more employers in any employment
specified in Part C of that Schedule, for a continu ous period specified
under this sub-section for that employment and he h as after the cessation
of such service contracted any disease specified in the said Part B or the
said Part C, as the case may be, as an occupational disease peculiar to
the employment and that such disease arose out of t he employment, the
1 Clause (c) omitted by Act 5 of 1929, sec. 2.
2 Subs. by Act 8 of 1959, sec. 3, for sub-sections (2) and (3) (w.e.f. 1-6-1959).
3 Ins. by Act 64 of 1962, sec. 3 (w.e.f. 1-2-1963).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
contracting of the disease shall be deemed to be an injury by accident
within the meaning of this section.]
1[(2A) If a workman employed in any employment speci fied in Part C of Schedule
III contracts any occupational disease peculiar to that employment, the
contracting whereof is deemed to be an injury by ac cident within the meaning
of this section, and such employment was under more than one employer, all
such employers shall be liable for the payment of t he compensation in such
proportion as the Commissioner may, in the circumstances, deem just.]
(3) 2[The Central Government or the State Government], b y notification in the
Official Gazette, after giving, not less than three months’ notice of its intention
so to do, may, by a like notification, add any desc ription of employment to the
employments specified in Schedule III and shall spe cify in the case of
employments so added the diseases which shall be de emed for the purposes
of this section to be occupational diseases peculia r to those employments
respectively, and thereupon the provisions of sub-s ection (2) shall apply 3[in
the case of a notification by the Central Governmen t, within the territories to
which this Act extends, or, in case of a notificati on by the State Government,
within the State] 4[***] as if such diseases had been declared by this Act to be
occupational diseases peculiar to those employments.]
(4) Save as provided by 5[sub-seclions (2), (2A)] and (3), no compensation s hall
be payable to a workman in respect of any disease u nless the disease is
6[***] directly attributable to a specific injury by accident arising out of and in
the course of his employment.
(5) Nothing herein contained shall be deemed to con fer any right to
compensation on a workman in respect of any injury if he has instituted in a
Civil Court a suit for damages in respect of the in jury against the employer or
any other person; and no suit for damages shall be maintainable by a
workman in any court of law in respect of any injury—
(a) if he has instituted a claim to compensation in respect of the injury before
a Commissioner; or
1 Subs. by Act 64 of 1962, sec.3, for sub-section (2A) (w .e.f. 1-2-1963).
2 Subs. by Act 30 of 1995, sec. 3, for certain words (w. e.f. 15-9-1995).
3 Ins. by Act 30 of 1995, sec. 3 (w.e.f 15-9-1995).
4 Certain words omilted by Act 51 of 1970, sec. 2 and Sch. (w.e.l 1-9-1971).
5 Subs. by Act 8 of 1959, sec. 3, for “sub-section (2)” ( w.e,f. 1-6-1959).
6 The words “solely and” omitted by Act 15 o/ 1933, se c. 3.
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(b) if an agreement has been come to between the wo rkman and his
employer providing for the payment of compensation in respect of the
injury in accordance with the provisions of this Act.
Connection between accident and employment
The deceased employee while travelling by public t ransport to his place of
work met with a fatal accident. Nothing has been br ought on record that the
employee was not obliged to travel in any particula r manner under the terms of
the employment nor he was travelling in the officia l transport. Held, no casual
connection between accident and employment could be established. Hence, the
claimant is not entitled to any compensation; State Bank of India v. Vijay Laxmi,
1998 LLR 319.
Death during the course of employment
If the deceased employee met with his death while he was going to his place
of work and the death has arisen during the course of employment, then the
employer is liable for compensation; T.N.C.S. Corpo ration Ltd. v. s. Poomalai,
1995 LLR 63 (Mad): 1995 I LLJ HC MDS (378).
Entitlement to claim compensation
Where death was accelerated on account of stress a nd strain of the working
condition, it is not necessary that there should be a direct connection between
the cause of death and the nature of duties. Even i f a casual connection between
the two can be shown then the dependants of the de ceased would be entitled to
claim compensation from the employer; Divisional Pe rsonal Officer, Western
Railway v. Asluya Segam, 1994 LLR 11 (Raj).
Injury must be physical injury
Injury sustained by a workman must be a physical i njury on account of
accident; Leela Devi v. Ramlal Rahu, 1990 LLR 213 (HP).
Liability for compensation
(i) In order to attract section 3 (1) of the Act, f ollowing three conditions must be
fulfilled:—
(a) personal injury;
(b) accident; and
(c) arising out of and in the course of employment; Kalayni P. v. Divisional
Manager, Southern Railway (Personal Branch), Divisi onal Office, Madras,
2004 LLR 207 (Mad HC): 2004 1 LLJ 49.
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16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(ii) It is no doubt true that in order to succeed i n an application for getting
compensation under section 3 of the Act the followi ng points are required to
be established:—
(1) that the accident must arise out of and in the course of the workman’s
employment;
(2) there must be causal connection between the inj ury and the accident and
the work done in the course of the employment;
(3) the workman has to say that while doing a part of his duty or incidental
thereto it has resulted into an accident.
It is necessary that the workman must be actually working at the time of the
injury or the accident. Therefore, the three factor s, that there must be injury,
which must be caused in an accident, it must be cau sed in the course of and out
of the employment must be established; Branch Manag er, New India Assurance
Co. Ltd. v. Siddappa, Major, 2004 LLR 731 (Kant HC).
Meaning of the expression “arising out of employme nt”
(i) The expression “arising out of employment” mean s that there must be casual
relationship between the accident and the employmen t. If the accident has
occurred on account of ihe risk which is an inciden t of employment, it has to
be held that the accident has arisen out of the emp loyment; Oriental
Insurance Co. Lid. v. Nanguli Singh, 1995 LLJ HC ORS (298).
(ii) The words “ouf of employment” is not limited t o mere nature of the
employment, but it (arising out of employment) appl ies to its nature, its
conditions and obligations and its incidents. An ac cident which occurs on
account of a risk, which is an incident of employme nt, then the claim for
compensation can succeed provided the workman has n ot exposed himself
to an added peril by his own imprudent act; Executi ve Engineer 19th Div.
R.C.P., Bikancr v. Heeraram, 1982 (44) RR 179 Raj: 1980 Raj LW 412.
1
[4. Amount of compensation. —
(1) Subject to the provisions of this Act, the amou nt of compensation shall be as
follows, namely:—
(a) Where death results from the injury
an amount equal to
2[fifty per cent.] of the monthly wages of the deceased
workman multiplied by the relevant factor; or
an amount of 1[2[eighty thousand rupees]], whichever is more;
1 Subs, by Act 22 of 1984, sec. 3, for section 4 (w.e.f. 1-7-1984).
2 Subs, by Act 30 of 1995, sec. 4, for “forty per cent. ” (w.e.f. 15-9-1995).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(b) Where total permanent disablement results from the injury
an amount equal to 3[sixty per cent.] of the monthly wages of the injur ed
workman multiplied by the relevant factor; or
an amount of 4[5[ninety thousand rupees]], whichever is more;
Explanation 1.— For the purposes of clause (a) and clause (b) “rele vant factor”
in relation to a workman means the factor specified in the second column of
Schedule IV against the entry in the first column o f that Schedule specifying the
number of years which are the same as the completed years of the age of the
workman on his last birthday immediately preceding the date on which the
compensation fell due.
Explanation II.—Where the monthly wages of a workman exceed
6[four thousand
rupees], his monthly wages for the purposes of clau se (a) and clause (b) shall be
deemed to be 7[four thousand rupees] only;
(c) Where permanent partial disablement result from the injury
(i) i n the case of an injury specified in Part II of Schedule 1, such
percentage of the compensation which would have bee n payable in
thecase of permanent total disablement as is specif ied therein as
being the percentage of the loss of earning capacit y caused by that
injury; and
(ii) in the case of an injury not specified in Sche dule I, such percentage of
the compensation payable in the case of permanent t otal disablement
as is proportionate to the loss of earning capacity (as assessed by the
qualified medical practitioner) permanently caused by the injury;
Explanation I.— Where more injuries than one are caused by the same accident,
the amount of compensation payable under this head shall be aggregated but not
so in any case as to exceed the amount which would have been payable if
permanent total disablement had resulted from the injuries.
Explanation II.— In assessing the loss of earning capacity for the p urpose of
sub-clause (ii), the qualified medical practitioner shall have due regard to the
1 Subs, by Act 30 of 1995, sec, 4, for “twenty thousan d rupees” (w.e.f. 15-9-1995).
2 Subs, by Act 46 of 2000, sec. 3, for “fifty thousand rupees” (w.e.f. 8-12-2000).
3 Subs, by Act 30 1995, sec. 4, (or “fifty per cent.” (w.e.f. 15-9-1995).
4 Subs by Act 30 at 1995, sec. 4, for “twenty-four tho usand rupees” (w.e.f. 15-9-1995).
5 Subs, by Acl 46 of 2000, sec. 3, for “sixty fhousand rupees” (w.e.f. 8-12-2000).
6 Subs, by Act 30 of 1995, sec. 4, for “one thousand ru pees” fw.e.f, 15-9-1995) and again subs.
by Act 46 of 2000, sec. 3, for “two thousand rupees” (w.e.f. 8-12-2000),
7 Subs, by Act 30 of 1995, sec. 4, for “one thousand ru pees” fw.e.f, 15-9-1995) and again subs.
by Act 46 of 2000, sec. 3, for “two thousand rupees” (w.e.f. 8-12-2000),
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
percentages of loss of earning capacity in relation to different injuries specified in
Schedule I;
(d) Where temporary disablement whether totals or partial results from the
injury
a half monthly payment of the sum equivalent to twe nty-five per cent of
monthly wages of the workman, to be paid in accorda nce with the provisions
of sub-section (2).
1[(1A) Notwithstanding anything contained in sub-sec tion (l), while fixing the
amount of compensation payable to a workman is resp ect of an accident
occurred outside India, the Commissioner shall take into account the amount
of compensation, if any, awarded to such workman in accordance with the
law of the country in which the accident occurred a nd shall reduce the
amount fixed by him by the amount of compensation a warded to the
workman in accordance with the law of that country.]
(2) The half-monthly payment referred to in clause (d) of sub-section (I) shall be
payable on the sixteenth day —
(i) from the date of disablement where such disabl ement lasts for a period of
twenty-eight days or more, or
(ii) after the expiry of a waiting period of three days from the date of
disablement where such disablement lasts for a peri od of less than
twenty- eight days; and thereafter half-monthly dur ing the disablement or
during a period of five years, whichever period is shorter:
Provided that—
(a) there shall be deducted from any lump sum or h alf-monthly payments
to which the workman is entitled the amount of any payment or
allowance which the workman has received from the e mployer by way
of compensation during the period of disablement pr ior to the receipt
of such lump sum or of the first half-monthly payme nt, as the case
may be; and
(b) no half-monthly payment shall in any case excee d the amount, if any,
by which half the amount of the monthly wages of the workman before
the accident exceeds half the amount of such wages which he is
earning after the accident.
1 Ins. by Ac( 30 of 1995, sec. 4 (w.e.f. 15-9-1995).
16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
Explanation.— Any payment or allowance which the workman has rece ived from
the employer towards his medical treatment shall no t be deemed to be a
payment or allowance received by him by way of comp ensation within the
meaning of clause (a) of the proviso.
(3) On the ceasing of the disablement before the da te on which any half-monthly
payment falls due there shall be payable in respect of that half-month a sum
proportionate to the duration of the disablement in that half-month.]
1[(4) If the injury of the workman results in his de ath, the employer shall, in
addition to the compensation under sub-section (1), deposit with the
Commissioner a sum of 2[two thousand and five hundred rupees] for payment
of the same to the eldest surviving dependant of th e workman towards the
expenditure of the funeral of such workman or where the workman did not
have a dependant or was not living with his dependa nt at the time of his
death to the person who actually incurred such expenditure.]
Assessment of loss of earning capacity by the qual ified medical
practitioner
The incorporation of words “assessment of loss of earning capacity by the
qualified medical practitioner” in section 4 (1) (c ) (ii) have some purpose and it is
not a case of ambiguity at all. So long as there is no provision which enables the
Commissioner to determine the compensation ignoring the medical practitioner’s
report, there is no question of avoiding it by Comm issioner unless he wants a
second report from the Medical Board; New India Ass urance Co. Ltd. v.
Sreedharan, 1995 LLR 376 (Ker).
Interference by High Court
The interference by High Court with the order of re call by Commissioner for
Workmen’s Compensation on the ground of fraud by wo rkman is unjustified both
on fact and the law; Roshan Deen v. Preeti Lot, AIR 2002 SC 33.
3[4A. Compensation to be paid when due and penalty for default.—
(1) Compensation under section 4 shall be paid as soon as it falls due.
1 Ins. by Ac( 30 of 1995, sec. 4 (w.e.f. 15-9-1995).
2 Subs. by Act 46 of 2000, sec. 3, for “one thousand ru pees” (w.e.f. 8-12-2000).
3 Ins. by Act 8 of 1959, sec. 5 (w.e.f. 1-6-1959).
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16(3) The Workmen's Compensation Occupational Diseases (Punjab) Rules, 1964
(2) In cases where the employer does not accept the liability for compensation to
the extent claimed, he shall be bound to make provi sional payment based on
the extent of liability which he accepts, and, such payment shall be deposited
with the Commissioner or made to the workman, as th e case may be, without
prejudice to the right of the workman to make any further claim.
1[(3) Where any employer is in default in paying the compensation due under this
Act within one month from the date it fell due, the Commissioner shall—
(a) direct that the employer shall, in addition to the amount of the arrears, pay
simple interest thereon at the rate of twelve per c ent per annum or at
such higher rate not exceeding the maximum of the l ending rates of any
scheduled bank as may be specified by the Central G overnment, by
notification in the Official Gazette, on the amount due; and
(b) if, in his opinion, there is no justification f or the delay, direct that the
employer shall, in addition to the amount of the ar rears, and interest
thereon pay a further sum not exceeding fifty per c ent of such amount by
way of penalty:
Provided that an order for the payment of penalty s hall not be passed under
clause (b) without giving a reasonable opportunity to the employer to show
cause why it should not be passed.
Explanation.— For the purposes of this sub-section, “scheduled ba nk” means a
bank for the time being included in the Second Sche dule to the Reserve Bank of
India Act, 1934 (2 of 1934).
2[(3A) The interest and the penalty payable under su b-section (3) shall be paid to
the workman or his dependant, as the case may be.]]
Defaulting employer to pay additional amount of co mpensation
Sub-section (3) of section 4A read with clauses (a ) and (b) thereof, makes it
clear that additional amount of compensation can be levied against the defaulting
employer by way of penalty if it is shown that ther e is no justification for the delay
on his part in making good the compensation amount to the claimant; Ved
Prakash Garg v, Premi Devi, JT 1997 (8) SC 229.
Delayed payment or deposit of compensExcerpt shown. Open the full act in Lexace.