Facts of the Case

The petitioners, M/s. New Grand Hotel and its Manager, filed a petition before the Madurai Bench of the Madras High Court seeking condonation of a delay of 1,598 days in filing an appeal against the award dated 28.08.2015 passed by the Deputy Commissioner of Labour in E.C. No.63 of 2014 under the Employees' Compensation Act, 1923.

According to the petitioners, they were under the impression that fresh notice would be issued after the post of Deputy Commissioner was filled, as the office remained vacant. They further stated that the proprietor was undergoing medical treatment and was unaware of the ex parte award until revenue recovery proceedings were initiated. The petitioners also contended that they had to collect the case records from their previous counsel before preferring the appeal.

The respondent opposed the petition, asserting that the petitioners had knowledge of the award since their representative had already received copies and that the enormous delay was not satisfactorily explained. The respondent also pointed out that she was about 70 years old and had been deprived of the compensation awarded to her.

During the hearing, the petitioners informed the Court that they had already deposited the entire compensation amount and had no objection if the respondent was permitted to withdraw 50% of the deposited amount pending disposal of the appeal.

Issues Involved

  1. Whether a delay of 1,598 days in filing the appeal deserved to be condoned.
  2. Whether the reasons furnished by the petitioners constituted sufficient cause for condonation of delay.
  3. Whether the respondent should be permitted to withdraw part of the compensation amount during pendency of the appeal.
  4. Whether issues relating to the deceased's employment status and entitlement to compensation should be examined in the appeal.

Petitioners' Arguments

  • The petitioners contended that they believed further notice would be issued after the vacancy in the office of the Deputy Commissioner of Labour was filled.
  • The proprietor was suffering from ill-health and was undergoing treatment, preventing timely action.
  • They became aware of the award only after receiving notice under the Revenue Recovery Act.
  • Delay also occurred because records had to be obtained from the previous advocate.
  • They submitted that the compensation amount had already been deposited before the Court.
  • They consented to the respondent withdrawing 50% of the deposited amount.
  • They further contended that the deceased was not employed with the hotel at the time of the alleged accident and had already left service.

Respondent's Arguments

  • The respondent argued that the explanation for the prolonged delay was wholly unsatisfactory.
  • Copies of the award had already been received by the petitioners' representative, establishing their knowledge of the proceedings.
  • The respondent, being an elderly claimant, had been deprived of the compensation awarded in her favour due to the petitioners' conduct.
  • The respondent maintained that the deceased died during the course of employment while working in the hotel and was taken to the hospital directly from the workplace.

Court Order / Findings

The Madras High Court observed that questions regarding:

  • whether the deceased was a workman;
  • whether the death occurred during the course of employment; and
  • whether compensation was legally payable,

were issues to be examined in the main appeal and not at the stage of deciding the delay condonation petition.

Taking note of the petitioners' statement that the entire compensation amount had already been deposited and their consent permitting withdrawal of 50% of the amount, the Court:

  • Condoned the delay of 1,598 days in filing the appeal.
  • Permitted the respondent to withdraw 50% of the deposited compensation.
  • Directed the Registry to number the appeal, if otherwise in order, and proceed with the appeal in accordance with law.

Important Clarification

  • Condonation of delay does not amount to adjudication on the merits of the compensation dispute.
  • The High Court did not determine whether the deceased was actually a workman or whether the death occurred during the course of employment.
  • Those questions were specifically left open for determination in the appeal.
  • The order demonstrates that where the compensation amount has already been deposited and appropriate conditions are imposed, courts may adopt a liberal approach in condoning substantial delay to facilitate adjudication on merits.

Sections Involved

  • Employees' Compensation Act, 1923 (formerly Workmen's Compensation Act, 1923)
  • Section 30 – Appeal
  • Section 5 of the Limitation Act, 1963 – Condonation of Delay
  • Relevant provisions relating to Revenue Recovery Proceedings

Link to download the order - https://www.mytaxexpert.co.in/uploads/1783923164_2124compressed.pdf

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