Page 39 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes
in the principal amount of compensation payable in fatal cases. However in non-fatal
cases, compromise is often permitted to the extent of 23,000/-. The Commissioners may
themselves ‘appraise’ the worker of the consequences of not compromising i.e. the ensuing
litigation, and the time and money that s/he will have to incur, which often influences the
worker to accept the lesser amount. In cases of compensation payable to a women or
person under a legal disability the Act requires that the sum be deposited with the
Commissioner. Any direct payment made to such persons is considered to be no payment
of compensation under law.
This provision for registration and depositing payment with the Commissioner is to
safeguard the interests of the women and dependents from fraud or force. An unscrupulous
employer may pay a lesser amount to the deceased’s dependents. Similarly an unscrupulous
dependent may collude with the employer to deny other dependents of their share.
Therefore, in the case of payments to women and dependents of deceased, an employer
can enter into agreement with them, however:

 Such agreement should be registered, and;
 The money should not be given directly, but deposited with the commissioner.

Source: http://www.ngosindia.com/resources/wcAct.pdf
Self Assessment

Fill in the blanks:
1. The Workmen’s Compensation Act was passed in March 1923 and was put into force on
..................................
2. The ............................. includes persons employed in factories, mines, plantations,
mechanically propelled vehicles, construction works and certain other hazardous
occupations.

3. The Act is administered by the ............................. through Commissioners for Workmen’s
Compensation.

4. The object of the Act is to impose an obligation upon ............................. to pay compensation
to workers for accidents arising out of and in the course of employment.

2.2 Definitions

In this Act unless there is anything repugnant in the subject or context:

2.2.1 Commissioner [Section 2(1)(b)]

Commissioner means a Commissioner for Workmen’s Compensation appointed under Section
20. The Act provides for appointment of Officers to be known as Commissioners of Workmen’s
Compensation. The Commissioners are to determine the liability of any person to pay
compensation (including the question whether a person is or is not a workman) and the amount
or duration of compensation (including any question as to the nature or extent of disablement).
No civil court bans jurisdiction to deal with matters which are required to be dealt with by a
Commissioner. Certain powers have been given to the Commissioners, e.g., the power to call
for further deposits. The Commissioner has the powers of a Civil Court.

34 LOVELY PROFESSIONAL UNIVERSITY