Facts of the Case

The petitioners, M/s. New Grand Hotel represented by its Proprietor and Manager, sought 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, Tirunelveli, under the Employees' Compensation Act.

According to the petitioners, they were under the impression that the matter would be listed only after the vacant post of the Deputy Commissioner of Labour was filled. They further contended that the proprietor was suffering from health issues and underwent treatment at Billroth Hospital, Chennai. The petitioners claimed that they came to know about the ex parte award only after receiving a notice under the Revenue Recovery Act from the Tahsildar in February 2020. They also submitted that the delay occurred because they had to obtain the case bundle from the previous counsel before filing the appeal.

The respondent opposed the petition by asserting that the petitioners were already aware of the award as copies had been received by their former Manager. It was also argued that the claimant was around 70 years old and had been deprived of the fruits of the award due to the prolonged delay.

 

Issues Involved

  1. Whether the delay of 1,598 days in filing the appeal should 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 any portion of the compensation amount already deposited.
  4. Whether the questions regarding the deceased's employment and entitlement should be examined in the appeal on merits rather than at the stage of condonation.

 

Petitioners' Arguments

  • The petitioners contended that they believed fresh notice would be issued after the appointment of a Deputy Commissioner of Labour.
  • The proprietor was undergoing medical treatment and therefore could not pursue the litigation promptly.
  • They became aware of the award only after receiving proceedings initiated under the Revenue Recovery Act.
  • Delay also occurred due to obtaining records from their previous advocate.
  • The petitioners argued that the respondent's claim was not genuine and that the deceased was not working in the hotel at the relevant time.
  • It was submitted that the entire compensation amount had already been deposited before the Court.
  • The petitioners expressed no objection to the respondent withdrawing 50% of the deposited amount, provided the appeal was entertained.

 

Respondent's Arguments

  • The respondent argued that the explanations for the extraordinary delay were wholly unbelievable.
  • Copies of the proceedings had already been received by the petitioners' former Manager, demonstrating their knowledge of the award.
  • The claimant had already suffered considerable hardship due to the prolonged litigation.
  • It was contended that the deceased died during the course of employment while working in the petitioners' hotel.
  • Therefore, the petition deserved outright dismissal as sufficient cause had not been established.

 

Court Order / Findings

The Madras High Court observed that the substantive issues, including:

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

were matters that should be decided in the appeal itself and not while considering the application for condonation of delay.

The Court took note of the petitioners' statement that the entire compensation amount had already been deposited and that they had no objection to the respondent withdrawing 50% of the deposited amount.

Considering these circumstances, the High Court:

  • Condoned the delay of 1,598 days;
  • Allowed the respondent to withdraw 50% of the compensation amount already deposited;
  • Directed the Registry to number the appeal, if otherwise in order, and proceed with the matter on merits.

 

Important Clarification

This judgment reiterates that:

  • Delay in filing an appeal may be condoned where sufficient circumstances exist and the interests of justice require adjudication on merits.
  • Deposit of the awarded compensation and willingness to permit partial withdrawal by the claimant may be considered as relevant equitable circumstances.
  • Questions regarding employer-employee relationship, course of employment, and liability should ordinarily be decided during the hearing of the appeal and not at the preliminary stage of condonation of delay.
  • The Court may balance the interests of both parties by allowing partial withdrawal of the deposited compensation while permitting the appeal to proceed.

 

Sections / Provisions Involved

  • Employees' Compensation Act, 1923
  • Law relating to Condonation of Delay
  • Revenue Recovery Act (Recovery Proceedings)
  • Civil Procedure relating to Appeals
  • Principles governing "Sufficient Cause" for condonation of delay 

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785221218_2124compressed.pdf

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