The Chairman And Managing Director vs Sudhish P.S on 25 March, 2026

    0
    58
    ADVERTISEMENT

    Kerala High Court

    The Chairman And Managing Director vs Sudhish P.S on 25 March, 2026

                                                         2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
                                       1
    
    
                 IN THE HIGH COURT OF KERALA AT ERNAKULAM
    
                                  PRESENT
    
                     THE HONOURABLE MR. JUSTICE S.MANU
    
       WEDNESDAY, THE 25TH DAY OF MARCH 2026 / 4TH CHAITHRA, 1948
    
                          MFA (ECC) NO. 52 OF 2025
    
          AGAINST THE JUDGMENT DATED 22.03.2024 IN ECC NO.34 OF
    2017 OF THE COMMISSIONER FOR EMPLOYEES COMPENSATION (INDUSTRIAL
    TRIBUNAL), ALAPPUZHA
    APPELLANT/OPPOSITE PARTY:
    
               THE CHAIRMAN AND MANAGING DIRECTOR,
               KERALA STATE ELECTRICITY BOARD LTD.,
               VYDUDHI BHAVANAM, PATTOM,
               THIRUVANANTHAPURAM, PIN - 695004.
    
               BY ADVS.
               SRI.C.JOSEPH ANTONY
               SRI.JOSEPH JOSE
               SRI.RAJU JOSEPH (SR.)
    
    
    RESPONDENT/APPLICANT:
               SUDHISH P.S.
               S/O SUKESHAN, HOUSE NO, NRA/145,
               VALLIPPARAMBIL HOUSE, SUFDERHASHMI LANE, PACHALAM PO,
               KOCHI, PIN - 682012.
    
               BY ADVS.
               SRI.B.ASHOK SHENOY
               SRI.P.S.GIREESH
               SRI.UMASANKER U.U.
               SRI.ADITYA A. SHENOY
    
    
    
          THIS MFA (ECC) HAVING BEEN FINALLY HEARD ON 04.03.2026,
    THE COURT ON 25.03.2026 DELIVERED THE FOLLOWING:
                                                            2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
                                       2
    
    
                                                                        [CR]
    
                                S.MANU, J.
              --------------------------------------------------
                         M.F.A.(ECC)No.52 of 2025
               -------------------------------------------------
                  Dated this the 25th day of March, 2026
    
                                JUDGMENT
    

    Appellant was the opposite party in E.C.C.No.34/2017

    before the Commissioner for Employees’ Compensation,

    SPONSORED

    Alappuzha. The respondent was a Lineman Grade-II in Kumily

    Electrical Section under the appellant. On 4.4.2015, when the

    respondent and some other employees were engaged in

    replacing an old electric post, the post fell on the shoulder of the

    respondent resulting in a severe injury to his spinal cord. An

    amount of Rs.7,17,696/- was deposited by the appellant as

    compensation. The respondent approached the Commissioner,

    discontented with the amount deposited by the appellant. The

    appellant contended that it had deposited the compensation

    before the Tribunal and in addition to the same sanctioned an
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    3

    amount of Rs.4,56,445/- towards reimbursement of medical

    expenses. It also extended the benefits under Section 47 of the

    Persons with Disabilities Act,1995. Taking into account the

    disability of the respondent, he was accommodated in a

    supernumerary post with all service benefits. Under such

    circumstances, there was no loss of earning to the respondent.

    Therefore, the appellant prayed that the application for

    compensation was liable to be rejected. In his rejoinder, the

    respondent contended that the compensation deposited by the

    appellant was inadequate. The respondent is suffering from

    paraplegia and is bedridden. He therefore contended that the

    compensation ought to have been calculated treating the loss of

    earning capacity as 100%.

    2. The respondent was examined as AW1 and a doctor

    was examined as AW2 before the Commissioner. Exts.A1 to A11

    were marked on the side of the respondent.

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    4

    3. The learned Commissioner held that the benefits

    granted under Section 47 of the Persons with Disabilities Act,

    1995 would not preclude the respondent from claiming benefits

    under the Employees’ Compensation Act, 1923. It was also

    found that the disability had to be accepted as 100%.

    4. Relying on the judgment of this Court in Fertilizers

    and Chemicals Travancore Limited v. Sushama Kumari

    [2023 SCC OnLine Ker 1564], the Commissioner fixed the

    compensation on the basis of the actual monthly wages of the

    respondent. Interest at the rate of 12% was granted for the

    period from the date of the accident till the date of deposit of

    the admitted amount by the appellant. The compensation

    payable was fixed as Rs.24,52,950/-. Subtracting the amount in

    deposit, the appellant was directed to deposit an amount of

    Rs.17,35,254/- along with interest. Aggrieved by this order, the

    instant appeal has been filed.

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    5

    5. The following substantial questions of law have been

    raised in this appeal:-

    “i) Can the Commissioner for Employees
    Compensation suo-moto award compensation far
    beyond the request made by the applicant?

    ii) Whether the Commissioner is justified in
    disregarding notification issued by Central Government
    under Sec 4(1B) and taking recourse to Sec 5 of the
    Employees Compensation Act while awarding amount of
    compensation?

    iii) Whether, in the light of facts involved in the case
    and on a correct interpretation of Sections 4(1), 4(1B)
    and Section 5 of the Employees’ Compensation Act, an
    employee is entitled to get compensation reckoning any
    amount beyond the monthly wages fixed by the Central
    Government invoking its power under Section 4(1B) of
    the Employees’ compensation Act, 1923?

    iv) Whether the decision rendered by this Hon’ble Court
    in MFA(ECC) No.65 of 2017 dated 02.03.2023 (2023 (2)
    KHC 385), is correctly decided on a proper
    interpretation of Sections 4(1), 4(1B) and 5 of the
    Employees’ Compensation Act, 1923?”

    6. The first aspect to be discussed is whether the

    Commissioner has the power to fix a higher compensation than

    that claimed in the application. The duty enjoined on the

    Commissioners under the Act is to provide just and proper
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    6

    compensation to the victims of employment accidents. The

    Commissioners play the most crucial role in implementing the

    provisions of the Act. Apart from adjudicating the claims for

    compensation, various other responsibilities are also enjoined

    on the Commissioners under various provisions of the Act. The

    proceedings before the Commissioner are not governed by

    stringent rules regarding pleadings and evidence as in the case

    of criminal and civil trials. It is also to be noted that applications

    for compensation will be filed by injured employees or their

    dependents who may not be much educated or equipped to

    engage in a complex legal fight. The legal assistance if any

    obtained by them may be of varying degrees in quality. Hence,

    if a strict view is taken that in no case shall the Commissioner

    grant compensation beyond what is sought for, even if the

    applicant is actually entitled to a higher sum, the outcome will

    be injustice. The Employee’s Compensation Act is a beneficial

    legislation, one among various legislative measures adopted to
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    7

    ensure social security to the labour force of the country. While

    interpreting such a law, the Court shall bear in mind the peculiar

    environments of the intended beneficiaries. An interpretation

    without such sensitivity may lead to frustration of the objectives

    of the Act. Summing up the discussion on this issue, I hold

    that in view of the provisions of Sections 3 and 4 of the Act, the

    Commissioner is bound to grant just and proper compensation

    even though the compensation determined by the Commissioner

    in accordance with the provisions of the Act exceeds the amount

    claimed by the applicant. Power of the Commissioner to award

    just and proper compensation is not circumscribed by the

    amount claimed in the application for compensation.

    7. I find support for the above view from various

    precedents. The Hon’ble Supreme Court in Rajesh and others

    v. Rajbir Singh and others [(2013) 9 SCC 54] held as under

    with respect to the proceedings before the Motor Accidents

    Claims Tribunal:

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    8

    “11. Underlying principle discussed in the above
    decisions is with regard to the duty of the court to fix a
    just compensation and it has now become settled law
    that the court should not succumb to niceties or
    technicalities, in such matters. Attempt of the court
    should be to equate, as far as possible, the misery on
    account of the accident with the compensation so that
    the injured/the dependants should not face the
    vagaries of life on account of the discontinuance of the
    income earned by the victim.”

    Though the Apex Court held as above in a case arising under

    the Motor Vehicles Act, in my view, the principle can be applied

    to the proceedings under the Employees Compensation Act as

    well.

    8. More precisely, in the following judgments, Madras

    and Bombay High Courts have held that the Commissioner

    under the Employee’s Compensation Act is empowered to grant

    compensation in excess of the amount claimed:-

    1) Century Chemicals and Oils (Private) Ltd. v.

    Esther Maragatham [ 1998 (2) L.L.N. 583 ]

    2) Oriental Insurance Company Ltd. v. Srimati S.
    Sawant and another

    [2001 SCC OnLine Bom 356].

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    9

    3) Raiwantabai W/O Ramdas Sard Are v. Nagpur
    Municipal Corporation
    [2017 SCC OnLine Bom 9846].

    9. Relevant observations in Century Chemicals and Oils

    (Private) Ltd (Supra) are as follows:

    “17. Learned counsel for the appellant further
    submitted that the compensation claimed by the
    claimants is much less than what has been awarded
    and, therefore, the authority has exceeded in its
    jurisdiction. The said submission also cannot be
    accepted. Once it is found that he is a skilled labourer,
    the Act provides that formula under which the
    compensation has to be calculated. That compensation
    will have to be awarded irrespective of the claim. Even
    if a mistake has been committed by the claimants, the
    authority is bound to pay due compensation payable on
    account of the death of the deceased. None of the
    grounds urged by learned counsel for the appellant can
    be sustained. The appeal is, therefore, dismissed. No
    costs. Consequently, the connected C.M.Ps are also
    dismissed.”

    10. It was held in Oriental Insurance Company Ltd.

    (Supra) as under:-

    “21. In this behalf it would be appropriate to advert to
    the decision of the Madras High Court in Century
    Chemicals and Oils (Private) Ltd. v. Esther
    Maragatham
    ) reported in 1998 (2) L.L.N. 583, which
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    10

    has taken a view that even if a mistake has been
    committed by the claimant while setting up the claim
    for compensation under the provisions of the Act,
    however, it is the duty of the Commissioner to award
    compensation in terms of the provisions of the Act and
    not with reference to such a faulty claim. In my view,
    although the respondent No.1 claimant had filed
    application praying for compensation of Rs.30,000;
    however, the Commissioner was well justified in
    awarding higher compensation that what was prayed
    for by the applicants/respondent No.1, so long as the
    said compensation was in accordance with the
    provisions of the Act. In the circumstances, the
    grievance made on behalf of the respondent No.2 that
    the amount awarded travelled beyond the relief prayed
    for is wholly misplaced and untenable. In my view, the
    Commissioner was justified in awarding higher
    compensation than the one actually prayed for in the
    application, for it is the duty of the Commissioner to
    pass such order so as to meet the ends of justice in
    accordance with law. On plain language of S.4 of the
    said Act, it is seen that it is mandatory that,
    irrespective of the relief, it is the duty of the
    Commissioner to award amount of compensation as
    provided in the said Act.”

    11. In Raiwantabai W/O Ramdas Sard Are (Supra)

    the Bombay High Court held as under:-

    “5. As rightly submitted by learned counsel for
    appellant, the reasoning given by the Commissioner for
    awarding this amount of Rs.1,28,330/-, merely because
    it was claimed by the appellant, when in fact she was
    found to be entitled legally to get the amount of
    Rs.1,88,645/-, is completely erroneous and that finding
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    11

    has to be quashed and set aside. Needless to state that
    it is the duty of the Commissioner under Workmen’s
    Compensation, to award the amount of compensation
    which is just, adequate and fair and which amount the
    claimant is found entitled to get under the statute and
    not that amount which the claimant demands or does
    not demand. The Commissioner for Workmen’s
    Compensation has thus, failed in his duty in not
    awarding the reasonable amount of compensation to
    which the Commissioner has held the appellant entitled
    to, that is the amount of Rs.1,88,645/-. Hence, to that
    extent definitely interference is warranted in the
    impugned judgment and order of the Commissioner.”

    12. The next issue relates to the impact of the

    notification issued by the Central Government under Section

    4(1B) of the Employees’ Compensation Act, 1923.

    13. In Fertilizers and Chemicals Travancore Limited

    (Supra), a learned Single Judge of this Court held that the

    monthly wages shall be the actual wages of the employee for

    the purpose of calculating compensation. The learned Senior

    Counsel for the appellant contended that the said judgment is

    incorrect. He submitted that if the interpretation of the

    provisions of Section 4(1B) and Section 5 of the Act adopted in

    the said judgment is accepted, then the provisions of Section
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    12

    4(1B) would become redundant. He further submitted that an

    interpretation which would render a provision of the Act

    redundant should be avoided. He submitted that, at the time of

    the accident in this case, the notification issued by the Central

    Government fixed Rs.8,000/- as the monthly wages. He hence

    submitted that the learned Commissioner ought to have

    calculated the compensation by taking Rs.8,000/- as the

    monthly wages of the respondent. He placed heavy reliance on

    the judgment of the Hon’ble Supreme Court in Sivaraman K

    and others v. P. Sathishkumar and another [(2020) 4 SCC

    594]. He contended that the Hon’ble Supreme Court has taken

    note of the cap on monthly wages incorporated by the

    legislature and in view of the law laid down by the Hon’ble

    Supreme Court, the judgment of the learned Single Judge in

    Fertilizers and Chemicals Travancore Limited (Supra)

    requires reconsideration. The learned Senior Counsel further

    contended that in the case at hand, the respondent has been
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    13

    accommodated in a supernumerary post by the appellant and

    therefore he is still employed. He submitted that under such

    circumstances, if the respondent is treated as incapable of any

    work and compensation is granted for total loss of earning

    capacity, the same would lead to injustice as far as the appellant

    is concerned. The respondent will be in a position to work even

    after receiving compensation for total loss of earning capacity.

    The learned Senior Counsel submitted that, since the appellant

    seriously challenges the correctness of the judgment in

    Fertilizers and Chemicals Travancore Limited (Supra), the

    appeal may be referred for consideration by a Division Bench.

    He also placed reliance on the judgment of the Andhra Pradesh

    High Court in Nagarjuna.D. v. DRN Infrastructure [2024

    KHC 2586] and submitted that the court elaborately considered

    the impact of notification under Section 4(1) and decided the

    dispute by following the notification issued by the Central

    Government under Section 4(1B).

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    14

    14. Learned counsel for the respondent per contra

    submitted that the judgment of the learned Single Judge in

    Fertilizers and Chemicals Travancore Limited (Supra) was

    rendered by adopting an interpretation keeping in mind the

    object of the Employees’ Compensation Act. He further

    submitted that the Hon’ble Supreme Court in Sivaraman K and

    others (Supra) has categorically held that the intention of the

    Amendment Act of 2009 was to remove the cap on the monthly

    income of employees and extend to them compensation on the

    basis of the actual monthly wages. He further contended that

    the notification would apply when there is no reliable evidence

    to prove the monthly income of the employee and when the

    employee is able to prove the monthly wages, the compensation

    is to be calculated as provided under Section 5 of the Act. The

    learned counsel relied on a judgment of the Madras High Court

    in Mahalakshmi v. Krishna Raj [2024 KHC OnLine 5472]. He

    also referred to a judgment of the High Court of the Himachal
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    15

    Pradesh in New India Assurance Company Limited v.

    Smt.Govindi Devi and others [2019 SCC OnLine HP 2529].

    The learned counsel further submitted that the observation of

    the Hon’ble Supreme Court in paragraph 26 of the judgment in

    Sivaraman K and others (Supra), even if treated as obiter has

    binding force in view of the law laid down by a Full Bench of this

    Court in State of Kerala v. Parameswaran Pillai Vasudevan

    Nair [1974 SCC OnLine Ker 87]. He pointed out that the law

    laid down by the Full Bench was quoted with approval by a

    Bench of three Judges of the Hon’ble Supreme Court in

    Municipal Committee, Amritsar v. Hazara Singh [(1975) 1

    SCC 794]. The learned counsel also referred to a judgment of

    the Hon’ble Supreme Court in Rani v. Branch Manager,

    Shriram General Insurance Company Limited [2024 KHC

    5474].

    15. To address the questions of law raised in this appeal

    reference to the relevant statutory provisions is vital. Section
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    16

    2(1)(m) defines ‘wages’. The provision reads as under:-

    “2. Definitions.–(1) In this Act, unless there is
    anything repugnant in the subject or context,–
    …………………………………………………………………….

    (m) “wages” includes any privilege or benefit which is
    capable of being estimated in money, other than a
    travelling allowance or the value of any travelling
    concession or a contribution paid by the employer of a
    employee towards any pension or provident fund or a
    sum paid to a employee to cover any special expenses
    entailed on him by the nature of his employment;”

    16. Section 4 deals with the amount of compensation.

    The relevant part of the provision is extracted hereunder: –

    “4. Amount of compensation.–(1) Subject to the
    provisions of this Act, the amount of compensation shall
    be as follows, namely:–

    (a) Where death results from the injury – an amount
    equal to fifty per cent of the monthly wages of the
    deceased employee multiplied by the relevant factor;

    or
    an amount of one lakh and twenty thousand rupees,
    whichever is more;

    (b) Where permanent total disablement results from
    the injury – an amount equal to sixty per cent of the
    monthly wages of the injured employee multiplied by
    the relevant factor,
    or
    an amount of one lakh and forty thousand rupees,
    whichever is more:

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    17

    Provided that the Central Government may, by
    notification in the Official Gazette, from time to time,
    enhance the amount of compensation mentioned in
    clauses (a) and (b).”

    17. Section 5 deals with method of calculating wages.

    The provision reads as under:-

    “5. Method of calculating wages.–

    In this Act and for the purposes thereof the expression
    “monthly wages” means the amount of wages deemed
    to be payable for a month’s service (whether the wages
    are payable by the month or by whatever other period
    or at piece rates) and calculated as follows, namely:–

    (a) where the employee has, during a continuous
    period of not less than twelve months immediately
    preceding the accident, been in the service of the
    employer who is liable to pay compensation, the
    monthly wages of the employee shall be one-twelfth of
    the total wages which have fallen due for payment to
    him by the employer in the last twelve months of that
    period;

    (b) where the whole of the continuous period of service
    immediately preceding the accident during which the
    employee was in the service of the employer who is
    liable to pay the compensation was less than one
    month, the monthly wages of the employee shall be the
    average monthly amount which, during the twelve
    months immediately preceding the accident, was being
    earned by a employee employed on the same work by
    the same employer, or, if there was no employee so
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    18

    employed, by a employee employed on similar work in
    the same locality;

    (c) in other cases [including cases in which it is not
    possible for want of necessary information to calculate
    the monthly wages under clause (b)], the monthly
    wages shall be thirty times the total wages earned in
    respect of the last continuous period of service
    immediately preceding the accident from the employer
    who is liable to pay compensation, divided by the
    number of days comprising such period.”

    18. Comprehensive amendments were brought in to force

    by the Amendment Act of 2009 to the provisions of the Act.

    Before the amendment, Section 4(1) contained an explanation

    providing that where the monthly wages of a workman exceed

    four thousand Rupees, his monthly wages for the purposes of

    Clauses (a) and (b) of sub-section (1) shall be deemed to be

    four thousand Rupees only. Hence there was a cap on the

    monthly wages for the purpose of granting compensation. It is

    pertinent to note that the said cap was removed by Act 45 of

    2009. Instead, Section 4(1B) was incorporated providing that

    the Central Government may by notification in the official

    gazette, specify, for the purposes of sub-section (1), such
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    19

    monthly wages in relation to an employee as it may consider

    necessary. The Central Government issued notifications under

    sub-section 1B and as per the latest notification dated 3.1.2020

    the monthly wage has been notified for the purpose of Section 4

    as Rs.15,000/-.

    19. The conclusion of the learned Single Judge of this

    Court in Fertilizers and Chemicals Travancore Limited

    (Supra) was that the amount mentioned in the notification of

    the Central Government would not dis-entitle an employee from

    seeking compensation on the basis of the actual monthly wages.

    The learned Single Judge held that no provision was

    incorporated in the Act either by way of a non obstante clause

    or by deemed provision so as to curtail or limit or to take away

    the application under Section 5 of the Act. The learned Single

    Judge held that the amended provision, sub-section (1-B) will

    not have any overriding effect and Section 5 of the Act would

    come into operation in the matter of assessment or method of
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    20

    calculation of monthly wages as mentioned under Section 4(1)

    of the Act. The relevant discussion in the judgment is extracted

    hereunder:-

    “4. There are two provisos attached to Section 4(1) and
    4(1-B) of the Act. The proviso attached to Section 4(1)
    says that the Central Government may by notification in
    the Official Gazette from time to time enhance the
    amount of compensation mentioned in clauses (a) and

    (b). But clauses (a) and (b) has got two limbs, which
    are extracted below for reference:

    “4. Amount of compensation – (1) Subject to the
    provisions of this Act, the amount of compensation
    shall be as follows, namely:-

    (a) Where death results from the injury – an amount
    equal to fifty per cent of the monthly wages of the
    deceased employee multiplied by the relevant
    factor; or an amount of one lakh and twenty
    thousand rupees, whichever is more;

    (b) Where permanent total disablement results
    from the injury – an amount equal to sixty percent
    of the monthlywages of the injured employee
    multiplied by the relevant factor, or an amount of
    one lakh and forty thousand rupees whichever is
    more:

    Provided that the Central Government may, by
    notification in the Official Gazette from time to time,
    enhance the amount of compensation mentioned in
    clauses (a) and (b).”

    5. Going by the provision, it is clear that in clauses (a)
    and (b), there are two separate limbs and in both the
    clauses, the first limb deals with monthly wages and
    calculation of compensation thereof without specifying
    any amount to be paid by way of compensation. It is in
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    21

    the second limb of both the clauses (a) and (b), an
    amount of compensation is made mentioned as a sum
    of Rs.1,20,000/- and Rs.1,40,000/- respectively. The
    proviso attached to Section 4(1) refers only
    enhancement of “amount of compensation” mentioned
    in clauses (a) and (b), which stands for the respective
    second limb of those clauses, hence may not have any
    application to the first limb of both the said clauses. So
    the authority given to the Central Government by virtue
    of the proviso to Section 4(1) is only to enhance the
    respective amount of Rs.1,20,000/- and Rs.1,40,000/-

    mentioned in the second limb of clauses (a) and (b)
    and it may not have any application to alter the amount
    that can be assessed as “monthly wages” and it is clear
    from the language used in the proviso which is
    restricted to enhance the “amount of compensation”

    made mentioned in clauses (a) and (b).

    6. The amended provision, sub-section (1-B), which was
    inserted by virtue of the Amended Act is extracted
    below for reference:

    “(1-B) The Central Government may, by
    notification in the Official Gazette, specify, for the
    purposes of sub-section (1), such monthly wages
    in relation to an employee as it may consider
    necessary.”

    7. The earlier provision – Explanation II attached to
    Section 4(1) of the Act is also extracted below for
    reference:-

    “Explanation II – Where the monthly wages of a
    workman exceed four thousand rupees, his
    monthly wages for the purposes of clause (a) and
    clause (b) shall be deemed to be four thousand
    rupees only.”

    (emphasis supplied)
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    22

    8. The said provision – Explanation II had been
    taken away by virtue of the Amendment Act 45 of 2009
    with effect from 18/1/2010 and thereby deleted the
    deeming provision therein and substituted with the
    newly inserted provision – Section 4(1-B), without a
    deeming provision or any restriction or upper limit
    regarding “monthly wages” made mentioned therein.
    Sub-section (1-B) says only that the Central
    Government may specify for the purpose of sub-section
    (1) such “monthly wages” in relation to an employee
    “as it may consider necessary”. The expression initially
    used that “the Central Government may” makes the
    provision directory and not mandatory without
    imposing any obligation on the part of the Central
    Government to notify any such amount, but left open
    to the discretion of the Central Government, which is
    well evident from the wording and language used “as it
    (the Central Government) may consider necessary” in
    that provision. It is incorporated and inserted not in
    derogation of the application of Section 5 of the Act,
    which deals with the method of calculating “monthly
    wages”, which stands and means the amount of wages
    deemed to be payable for a month’s service, whether
    the wages are payable by month or whatever other
    period or at piece rate and should be calculated in
    accordance with clauses (a) to (c) therein. Clause (a)
    says that where the employee has, during the
    continuous period of not less than 12 months
    immediately preceding the accident, been in service of
    the employer who is liable to pay compensation, the
    monthly wages of the employee shall be 1/12th of total
    wages, which have fallen due for payment to him by
    the employer in the last twelve months of that period.
    The victim involved in the case was in continuous
    service for a longer period of more than 12 months
    prior to the alleged incident, hence falls under clause
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    23

    (a) of Section 5 of the Act and his monthly wages for
    the purpose of the said Act should be calculated as
    1/12th of the total wages payable to him for the last 12
    months. No provision was incorporated either under
    the Amendment Act 45 of 2009 or anywhere in the Act
    either by way of a non-obstante clause or by deemed
    provision so as to curtail or limit or to take away the
    application of Section 5 of the Act. Necessarily, the
    newly amended provision – sub-section (1-B) to
    Section 4 of the Act and the language employed therein
    which makes the provision not mandatory to notify any
    sum by the Central Government must be understood
    not to make the other provision inoperative. It is also
    not permissible to have an interpretation to the
    abovesaid newly inserted provision so as to take away
    the method available for computation of monthly
    wages made mentioned under Section 5 of the Act.
    Hence, there cannot be any merit in the argument that
    the amount notified (Rs.8,000/-) by the Central
    Government by virtue of sub-section (1-B) should be
    the “monthly wages” for the purpose of determination
    of compensation cannot be accepted, otherwise,
    Section 5 of the Act would stand redundant and
    purposeless. Necessarily, the non incorporation of
    either a deeming provision akin to that of in the earlier
    provision – Explanation II attached to Section 4(1) of
    the Act or any non-obstante clause or any provision
    either limiting, reducing or specifying any upper limit
    with respect to the application of Section 5 of the Act
    would make the legal position clear that the “monthly
    wages” and its method of calculation narrated under
    Section 5 of the Act is applicable in the matter of
    determination of compensation by virtue of Section
    4(1)
    of the Act, especially when it deals with the
    determination of compensation based on the “monthly
    wages”. It is made clear in Section 5 of the Act that the
    method available under that Section is for the purpose
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    24

    of calculating “monthly wages” under that Act. It is
    Section 4 of the Act which says how the compensation
    has to be computed based on the “monthly wages”.
    Except in Section 4 of the Act, no where the expression
    “monthly wages” is made mentioned in the Act. The
    legislature has in its wisdom incorporated the
    expression “monthly wages” with the highlight of
    double inverted comas in that provision – Section 5 of
    the Act. No restriction or limitation was incorporated so
    as to limit the application of Section 5 anywhere in the
    Act, even at the time of Amendment Act 45 of 2009.
    On the other hand, the deeming provision under the
    Explanation II limiting the liability has been taken away
    by the abovesaid Amendment Act. Necessarily, the
    amended provision (1-B) will not have any overriding
    effect or any legal consequence over and above Section
    5
    of the Act and Section 5 of the Act would come into
    operation in the matter of assessment or method of
    calculation of monthly wages as made mentioned under
    Section 4(1) of the Act.”

    20. The learned Senior Counsel vehemently submitted

    that the interpretation adopted in Fertilizers and Chemicals

    Travancore Limited (Supra) would render the provisions of

    Section 4(1B) redundant. He argued that the Court shall not

    adopt a construction which would render any provision of the

    law redundant. The learned Senior Counsel referred to the

    following paragraphs of the judgment in State of Tamil Nadu
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    25

    and others v. K.Shobana [(2021) 4 SCC 686]:-

    “12. The appellant relied on Hardeep Singh v. State
    of Punjab
    [(2014) 3 SCC 92], paras 42 to 45 : (2014)
    2 SCC (Cri) 86] wherein, though the dispute related
    to the interpretation of the provisions of Section 319
    CrPC, what is relevant is the proposition sought to be
    laid down. It held that it was a settled principle of law
    that if an interpretation leads to a conclusion that the
    word used by the legislature is redundant, that
    should be avoided as the presumption is that the
    legislature has deliberately and consciously used the
    word for carrying out the purpose of the Act. The
    legal maxim a verbis legis non est recedendum which
    means, “from the words of law, there must be no
    departure” has to be kept in mind. There could be no
    assumption that a legislature committed a mistake
    when the language of the statute was plain and
    ambiguous. No word in a statute has to be construed
    as a surplusage nor could any word be rendered
    ineffective or purposeless if the Court required to
    carry out the legislative intent fully and completely.”

    21. The learned Senior Counsel referred to the judgment

    of the Hon’ble Supreme Court in Sivaraman.K. and others

    (Supra) and made specific reference to the following

    paragraph:-

    “26. Prior to Act 45 of 2009, by virtue of the
    deeming provision in Explanation II to Section 4,
    the monthly wages of an employee were capped at
    Rs.4000 even where an employee was able to
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    26

    prove the payment of a monthly wage in excess of
    Rs.4000. The legislature, in its wisdom and keeping
    in mind the purpose of the 1923 Act as a social
    welfare legislation did not enhance the quantum in
    the deeming provision, but deleted it altogether.
    The amendment is in furtherance of the salient
    purpose which underlies the 1923 Act of providing
    to all employees compensation for accidents which
    occur in the course of and arising out of
    employment. The objective of the amendment is to
    remove a deeming cap on the monthly income of
    an employee and extend to them compensation on
    the basis of the actual monthly wages drawn by
    them. However, there is nothing to indicate that the
    legislature intended for the benefit to extend to
    accidents that took place prior to the coming into
    force of the amendment.”

    22. He submitted that the issue considered by the

    Hon’ble Supreme Court in the said judgment was regarding the

    retrospective operation of the amendment and the observation

    regarding the objective of the amendment was only a passing

    reference made during the discussion.

    23. The learned Senior Counsel earlier relied on a

    judgment of the Andhra Pradesh High Court in Nagarjuna.D.

    (Supra). Paragraphs 13 to 15 of the said judgment read as

    follows:-

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    27

    “13. S.4 of Act, 1923 provides the principle for
    computation of compensation. By virtue of Act 45 of
    2009, several amendments were brought into for this
    S.4. The said Amendment Act came into force for most
    part of it on 18.1.2010. Earlier to this amendment,
    there was Explanation II to S.4 whereunder the
    monthly wages of an employee were capped at
    Rs.4,000. Thus, earlier to this amendment in the year
    2009 even if the employee was able to prove that his
    monthly wage was in excess of Rs.4,000, by virtue of
    the cap fixed by the legislature, it was to be calculated
    only at Rs.4,000. This Explanation II to S.4 was
    omitted by the Amendment Act in the year 2009. The
    effect of that amendment is what the Hon’ble Supreme
    Court explained at para 26 of their Lordships’ judgment
    which was extracted earlier in this judgment. However,
    that is not the end of the matter. In the amendment
    that was made in the year 2009, the legislature
    brought in sub-section (1B) in S.4, which reads :

    “(1B) The Central Government may, by notification in
    the Official Gazette, specify, for the purposes of sub-

    section (1), such monthly wages in relation to an
    employee as it may consider necessary”.

    14. Exercising powers under that provision Central
    Government issued the following notification on
    31.5.2010. The same is extracted here:

    “S.O. 1258(E) – In exercise of the powers conferred by
    sub-section (1B) of S.4 of the Employee’s
    Compensation Act, 1923
    (8 of 1923), the Central
    Government hereby specified, for the purpose of sub-
    section (1) of the said section, the following amount as
    monthly wages, with effect from the date of publication
    of this notification in the official gazette, namely Eight
    thousand rupees.”

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    28

    15. These aspects could be noticed at para 8 and para
    14 of the judgment of the Hon’ble Apex Court of India
    referred above. Thus, the cap of Rs.8,000 for the
    purpose of considering monthly wages while computing
    compensation under S.4 as notified by the Central
    Government was followed by the learned Deputy
    Commissioner of Labour in his impugned order here. It
    is that aspect which is questioned by the learned
    counsel for appellant based on what their Lordships of
    the Hon’ble Supreme Court explained at para 26 of the
    judgment. It has to be stated that in the said ruling,
    their Lordships were not concerned with Central
    Government notification of the year 2010 and sub-
    section (1B) of S.4 of Act, 1923. At para 15 their
    Lordships stated that the question that fell for
    consideration before their Lordships was as to whether
    the Amendment Act 45 of 2009 was prospective in
    operation or retrospective in operation. In the case
    before their Lordships, accident occurred on 31.1.2008.
    By then by virtue of Explanation II cap of Rs.4,000 was
    there. By the time the matter came to be decided
    Amendment Act of the year 2009 came into force. It
    was in those circumstances Hon’ble Division Bench of
    the Madurai Bench of Madras High Court thought it fit
    to apply the Amendment Act, 2009 retrospectively and
    thereby cap of Rs.4,000 was not considered and the
    actual wage was taken into consideration. After giving
    various reasons and citing various precedents at para
    33 of its judgment, Hon’ble Supreme Court found that
    the approach of the High Court was erroneous and it
    ought to have decided the compensation considering
    Rs.4,000 cap and that the Amending Act, 2009 has no
    retrospective effect. It was never in the consideration
    of their Lordships as to whether under S.4(1B), Central
    Government was empowered to notify monthly wages
    or not. For the complete picture of the legal provisions,
    their Lordships were pleased to mention those
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    29

    provisions. However, those provisions did not fall for
    consideration before their Lordships. In that context of
    the matter only the removal of the cap and its purport
    was laid down by their Lordships at para 26 of the
    judgment. In the case at hand, the subject accident
    occurred on 3.3.2014. By then Amendment Act, 2009
    already came into existence and by the time the case
    fell for consideration before the Deputy Commissioner
    of Labour, Kurnool, notification of the year 2010 from
    the Central Government under S.4(1B) came into
    existence. Bound by that notification and bound by the
    legal mandate in S.4(1B), learned Deputy
    Commissioner of Labour appropriately acted in
    accordance with law. In the cited ruling, their Lordships
    did not set aside Central Government notification dated
    31.5.2010. In the cited ruling, the vires of S.4(1B) was
    neither questioned nor considered. Therefore, learned
    Deputy Commissioner, Kurnool acted in terms of
    Central Government notification dated 31.5.2010.
    Therefore it is to be upheld as it is in accordance with
    law. Therefore, the contention of the appellant in
    challenge to the cap of Rs.8,000 applied by the learned
    Deputy Commissioner of Labour is incorrect and is not
    in accordance with law and therefore this contention is
    negatived.”

    24. He submitted that the learned Single Judge of the

    Andhra Pradesh High Court has rightly distinguished the

    judgment of the Hon’ble Supreme Court in Sivaraman.K. and

    others (Supra). He contended that the view of the Andhra

    Pradesh High Court is in consonance with the statutory scheme
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    30

    of the Employees’ Compensation Act.

    25. The learned Senior Counsel therefore contended that

    the judgment of the learned Single Judge of this Court in

    Fertilizers and Chemicals Travancore Limited (Supra) did

    not lay down the law correctly. He submitted that the said

    judgment requires reconsideration by a bench of higher

    strength. He therefore urged that this appeal may be referred

    for consideration by a Division Bench.

    26. The learned counsel for the respondent supported the

    judgment in Fertilizers and Chemicals Travancore Limited

    (Supra) and urged that the contentions of the appellant may be

    rejected and the appeal be dismissed following the dictum laid

    down by the learned Single Judge. He argued that the Hon’ble

    Supreme Court in Sivaraman K. and others (Supra) has

    categorically held that the object of the amendment was to

    remove the cap in the case of monthly wages and to enable the

    employees to receive compensation on the basis of actual
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    31

    monthly wages. He contended that the observation by the

    Hon’ble Supreme Court in the paragraph referred to by the

    learned Senior Counsel is binding and the judgment in

    Fertilizers and Chemicals Travancore Limited (Supra) is in

    consonance with the principles laid down by the Hon’ble

    Supreme Court. He referred to the following paragraph of the

    judgment of the Full Bench in State of Kerala v.

    Parameswaran Pillai Vasudevan Nair :-

    “10. There was some discussion at the Bar about the
    scope of Article 141 of the Constitution which says that
    the law laid down by the Supreme Court shall be
    binding on all the courts in the country. Judicial
    propriety, dignity and decorum demand that being the
    highest judicial tribunal in the country even obiter
    dictum of the Supreme Court should be accepted as
    binding. Declaration of law by that Court even if it be
    only by the way has to be respected. But all that does
    not mean that every statement contained in a judgment
    of that Court would be attracted by Article 141.

    Statements on mattes other than law have no binding
    force, Several decisions of the Supreme Court are on
    facts and that Court itself has pointed out in Gurcharan
    Singh v. State of Punjab
    , 1956 Cri LJ 827 and Prakash
    Chandra Pathak v. State of Uttar Pradesh, (1960 Cri LJ

    283) that as on facts no two cases could be similar to its
    own decisions which were essentially on questions of
    fact and could not be relied upon as precedents for
    decision of other cases. In the State of Orissa v.

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    32

    Sudhansu Sekhar Misra, (1968) 2 SCJ 236) and Madhav
    Rao Jivaji Rao Scindia v. Union of India [(1971) 1 SCC
    85], the Supreme Court held that it was not a profitable
    task to extract a sentence here and there divorced from
    the context from its judgment as containing a full
    exposition of the law on a question when the question
    did not even fall to be answered in that judgment and
    build upon it. In Rajeswar Prasad Misra v. State of West
    Bengal
    (1965-2 Cri LJ 317) the arguments advanced
    before the Supreme Court disclosed a tendency to read
    the observations made in the judgments of that court as
    statutory enactments. Dealing with it the court said that
    although the Indian Courts are bound by the law
    declared by the Supreme Court it should not be
    forgotten that that court does not enact. In Raval and
    Co. v. K. G. Ramachandran
    [(1974) 1 SCC 424], the
    Supreme Court held that general observations contained
    in any judgment of that court should be confined to the
    facts of that case and cautioned that they should not be
    applied in interpreting the provisions of an Act unless it
    had applied its mind and analysed the provisions of that
    particular Act.”

    27. The learned counsel submitted that the above

    conclusions of the Full Bench were quoted in the following

    paragraph of the judgment of the Hon’ble Supreme Court in

    Municipal Committee, Amritsar (Supra):-

    “4.It is plain from submission of counsel that the
    appellant’s grievance is not so much against the
    acquittal as against a passing reference by the Sessions
    Court to an obiter observation of this Court in Malwa
    Cooperative Milk Union Ltd., Indore v. Biharilal [ Cri.As.

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    33

    No. 235 and 236 of 1964, decided on 14-8-1967].
    Obviously, the Sessions Judge had concluded that a
    minor error in the chemical analysis might have
    occurred. He was perhaps not right in saying so.
    Anyway, a reading of his judgment shows that the
    mention of this Court’s unreported ruling (supra) was
    meant to fortify himself and not to apply the ratio of
    that case. Indeed, this Court’s decision cited above
    discloses that Hidayatullah, J. (as he then was) was not
    laying down the law that minimal deficiencies in the
    milk components justified acquittal in food adulteration
    cases. The point that arose in that case was whether
    the High Court was justified in upsetting an acquittal in
    revision, when the jurisdiction was invoked by a rival
    trader, the alleged adulteration having been so
    negligible that the State had withdrawn the prosecution
    resulting in the acquittal. Certainly, the revisional power
    of the High Court is reserved for setting right
    miscarriage of justice, not for being invoked by private
    persecutors. Such was the ratio but, in the course of
    the judgment, Hidayatullah, J. to drive home the point
    that the case itself was so marginal, referred to the
    microscopic difference from the set standard. To distort
    that passage, tear it out of context and devise a new
    defence out of it in respect of food adulteration cases,
    is to be grossly unjust to the judgment. Indeed, the
    Kerala
    case cited before us by counsel viz.
    State of
    Kerala v. Vasudevan Nair [ Cr.A. No.
    89 of 1973,
    decided by the Kerala High Court on July 18, 1974 — All
    India Prevention of Food Adulteration Cases Reporter,
    1975 Part I, p. 8] itself shows that such distortion of
    the passage in the judgment did not and could not pass
    muster. When pressed with such misuse of this ruling,
    the High Court repelled it. The law of food adulteration,
    as also the right approach to decisions of this Court,
    have been set out correctly there:

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    34

    “Judicial propriety, dignity and decorum
    demand that being the highest judicial
    tribunal in the country even obiter dictum of
    the Supreme Court should be accepted as
    binding. Declaration of law by that Court even
    if it be only by the way has to be respected.
    But all that does not mean that every
    statement contained in a judgment of that
    Court would be attracted by Article 141.
    Statements on matters other than law have
    no binding force. Several decisions of the
    Supreme Court are on facts and that Court
    itself has pointed out in Gurcharan Singh v.
    State of Punjab
    [1972 FAC 549] and Prakash
    Chandra Pathak v. State of Uttar Pradesh [AIR
    1960 SC 195 : 1960 Cri LJ 283] that as on
    facts no two cases could be similar, its own
    decisions which were essentially on questions
    of fact could not be relied upon as precedents
    for decision of other cases.

    ***
    The standard fixed under the Act is one that is certain.
    If it is varied to any extent, the certainty of a general
    standard would be replaced by the vagaries of a
    fluctuating standard. The disadvantages of the resulting
    unpredictability, uncertainty and impossibility of arriving
    at fair and consistent decisions are great.”

    28. He hence argued that in view of the legal position as

    clarified by the Hon’ble Supreme Court, the intention of the

    Amendment Act, 2009 can be understood only as to provide for

    compensation on the basis of actual monthly wages. The
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    35

    learned counsel made reference to a judgment of the Hon’ble

    Supreme Court in Rani v. Branch Manager, Shriram General

    Ins. Co.Ltd. [2024 KHC OnLine 5474] to show that the ratio in

    K.Sivaraman and Others (Supra) was followed by the Hon’ble

    Supreme Court in Rani (Supra) also.

    29. The learned counsel for the respondent pointed out

    that in Mahalakshmi (Supra) a learned Single Judge of the

    Madras High Court considered the same issue and held as

    under:-

    “22. As clarified by the Apex Court in K.Sivaraman and
    others vs. P.Sathishumar and others
    cited supra, if the
    claimants able to prove their actual monthly salary,
    which is more than the monthly wages notified by the
    Central Government, they are entitled to get the actual
    monthly wages. In the absence of proof of actual
    monthly wages, the Labour Commissioner has no other
    alternative, other than adopting the monthly wages
    notified by the Central Government as per Section 4-
    1(B) of the Act. Hence the question of law is answered
    that the adoption of minimum wages prescribed by the
    State Government could not be taken into account for
    awarding compensation under the Act 1923 and the
    monthly wages notified by the Central Government as
    per Section 4(1-B) shall be adopted for awarding
    compensation. Accordingly, the first question of law
    raised in this appeal is answered.”

    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    36

    30. He pointed out that the learned Single Judge of the

    Madras High Court held that Section 4(1B) permits the Central

    Government to notify the monthly wages, if the employee was

    not able to prove his actual monthly wages.

    31. In Sivaraman.K. And Others (Supra) the Hon’ble

    Supreme Court held as under:-

    “25. The 1923 Act is a social beneficial legislation
    and its provisions and amendments thereto must
    be interpreted in a manner so as to not deprive the
    employees of the benefit of the legislation. The
    object of enacting the Act was to ameliorate the
    hardship of economically poor employees who were
    exposed to risks in work, or occupational hazards
    by providing a cheaper and quicker machinery for
    compensating them with pecuniary benefits. The
    amendments to the 1923 Act have been enacted to
    further this salient purpose by either streamlining
    the compensation process or enhancing the amount
    of compensation payable to the employee.”

    32. The issues arising for consideration in the case on

    hand deserves to be analysed bearing in mind the objective of

    the Act. If the interpretation canvassed by the learned Senior

    Counsel is accepted, then the resultant position would be that in

    no situation compensation can be granted taking into account
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    37

    the actual monthly wages if it exceeds the amount notified by

    the Central Government under Section 4(1B). If the purpose of

    Section 4(1B) is so understood, the provisions of Section 5 will

    become superfluous. It is to be noted that Section 5 is a

    specific provision providing for calculation of wages. The

    expression ‘monthly wages’ as applicable to various situations is

    specified under Section 5. If the intention of the legislature was

    to fix a uniform rate as monthly wages for the purpose of

    determining the compensation, Section 5 would not have been

    incorporated in the Act. It is also pertinent to note that the

    explanation, fixing a cap in the matter of monthly wages, was

    deleted by the Amendment Act of 2009. The manifest intention

    was therefore to remove the cap. If the construction suggested

    by the learned Senior Counsel for the appellant is adopted, it

    would amount to re-introduction of a ceiling in the matter of

    monthly wages. I am of the view that such an interpretation

    would not be in tune with the legislative intention, affirmed by
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    38

    the Amendment Act of 2009.

    33. The Act is unquestionably a social welfare legislation

    providing for remedies to employees who sustain injuries out of

    the employment and during the course of the employment to

    get adequate compensation. If an employee who draws monthly

    wages at a higher rate than that is notified by the Central

    Government under Section 4(1B) is deprived of compensation

    proportionate to his actual monthly wages, it cannot be said

    that just compensation was provided.

    34. If the provisions of Section 4(1B) and Section 5 of

    the Act are construed harmoniously it can be certainly held that

    the provisions of Section 4(1B) enable the Government to fix

    the monthly wages from time to time in order to ensure that

    employees/dependants seeking compensation under the Act

    would be entitled for reasonable compensation even if they fail

    to adduce reliable evidence regarding the actual monthly wages.

    In various sectors of employment in our country, employees are
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    39

    engaged under diverse arrangements. Large section of the

    workforce in our country is engaged in unorganised sectors. In

    many of the employments in the unorganised sectors, there

    may not be any proper system of keeping records regarding the

    wages. Hence in many situations, the employee/ dependents

    may not be in a position to provide authentic evidence to the

    Commissioner regarding the wages in the peculiar nature of

    engagement. Under such circumstances, the Commissioners

    can rely on the amount notified by the Central Government

    under Section 4(1B) to calculate the compensation.

    35. Nevertheless, when the applicant before the

    Commissioner or the opposite parties adduces evidence proving

    the actual monthly wages of the injured employee, in view of

    the provisions of Section 5 of the Act, the Commissioner can

    determine the compensation on the basis of the actual monthly

    wages proved in evidence. But in view of the object of S.4(1B),

    providing for periodical notification of monthly wages by the
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    40

    Central Government, the amount notified shall be considered as

    the basic minimum. Just and proportionate compensation in

    accordance with the provisions of the Act can be awarded even

    if the monthly wages proved before the Commissioner is higher

    than the amount notified by the Government. If the purpose of

    incorporating Section 4(1B) can be understood as above, there

    will not be any conflict between the two provisions. Such a

    construction would definitely advance the object of the Act.

    While interpreting two different provisions of an enactment, in

    reference to which incongruity is alleged, endeavour of the

    Court shall be to construe the provisions harmoniously, giving

    effect to both.

    36. I find considerable force in the contention of the

    learned counsel for the respondent that the observation of the

    Hon’ble Supreme Court in Sivaraman.K. And Others (Supra)

    regarding the object of the amendment cannot be considered as

    a mere passing observation. The Hon’ble Court opined that the
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    41

    objective of the amendment is to remove the deeming cap on

    monthly income and to extend compensation on the basis of

    actual monthly wages. It was held that the amendments to the

    1923 Act were enacted to further the salient purpose of the Act,

    either by streamlining the compensation process or by

    enhancing the amount of compensation payable to the

    employee. In other words, the relevant observation was made

    after adverting to the nature of the legislation and its objectives.

    As rightly contended by the learned counsel for the respondent,

    even if the observation is reckoned as obiter, the same is

    binding.

    37. It is pertinent to note that the Act defines ‘wages’ as

    including any privilege or benefit capable of being estimated in

    money, other than the allowances, contributions, etc., that are

    specifically excluded. Therefore, the expression ‘wages’ would

    cover the remuneration earned by an employee as a whole

    except the excluded elements. It is also relevant to note that
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    42

    under Section 5, the provision providing for the method of

    calculating wages, no ceiling limit is contemplated. The opening

    part of Section 5 is emphatic that the expression “monthly

    wages” in the Act, for the purposes thereof, shall be understood

    as provided in Section 5. Section 3 of the Act places liability on

    the employer if personal injury is caused to an employee by

    accident arising out of and in the course of his employment.

    Section 4 provides for determination of compensation. Sub-

    section (1-B) enables the Central Government to specify, for the

    purposes of sub-section (1), such monthly wages in relation to

    an employee as it may consider necessary. It is to be noted that

    the provisions of Section 5 being placed in the statute following

    the provisions of Section 4, the provisions of Section 5 shall be

    deemed to have been incorporated keeping in mind the previous

    provision. When sub-section 1B was incorporated by way of an

    amendment in 2009, if the legislature had the intention to put a

    ceiling in the matter of monthly wages, appropriate
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    43

    modifications to the provisions of Section 5 also would have

    been made. Hence, an analysis of the statutory scheme would

    show that the legislature had no intention to impose a cap on

    the maximum compensation liable to be granted. On the other

    hand, removal of the cap by the Amendment Act of 2009 is a

    clear indication that the intention was to remove the ceiling.

    38. The learned senior Counsel had argued that the

    employee has been accommodated in a suitable post and

    therefore there is no loss of earning. The said contention was

    rightly rejected by the Commissioner taking note of the

    provisions of S.47 of the PWD Act. I uphold the conclusion of

    the learned Commissioner in this regard.

    In the light of the discussion afore, all questions of law

    raised in this appeal are answered against the appellant. I am

    unable to subscribe to the view adopted by the Andhra Pradesh

    High Court in Nagarjuna.D.(Supra) and find no reason to doubt

    the correctness of the ultimate conclusion of the learned Single
    2026:KER:26210
    M.F.A.(ECC)No.52 of 2025
    44

    Judge of this Court in Fertilizers and Chemicals Travancore

    Limited (Supra). The appeal therefore fails and it is accordingly

    dismissed.

    S.MANU
    JUDGE

    skj



    Source link

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here