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ESI beneficiaries cannot claim damages

The Supreme Court has ruled that those employees getting the benefit of the Employees State Insurance Act are not entitled to compensation invoking the Workmen's Compensation Act. In this case, Dhropadabai vs M/s Technocraft Toolings, the employee suffered chest pain at the work place and he was taken to a hospital where he died. His widow and children demanded compensation under the Workmen's Compensation Act, as he had died in the course of employment. The employer denied this and in addition argued that those who are covered by the ESI Act are not entitled to compensation. The labour court rejected this argument and awarded Rs 4 lakh to the widow. On appeal, the Bombay High Court denied compensation, as he was an insured person. That view was upheld by the Supreme Court. The court had earlier asked the employer to deposit Rs 4 lakh in the registry and the widow had withdrawn it. The court stated that the amount should not be recovered from the widow now as she had fought the case for a decade.

 Article referred: http://www.business-standard.com/article/opinion/caution-on-injunctions-against-banks-115032900673_1.html

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